Post Office Savings for Beginners: The Post Office offers various simple savings plans that guarantee returns.
Some plans even provide a loan option along with returns. One such plan is the Post Office Recurring Deposit, where you can save a small amount every month and earn predetermined interest.
Taking a Loan Against Post Office Recurring Deposit
If you have an RD account with the post office, you can take a loan against it.
To be eligible, you need to have completed 12 installments, meaning your RD must be active for at least one year.
The loan amount is limited to 50 percent of your RD balance. You can repay the loan either in a lump sum or in installments.
However, the interest on the loan is 2 percent higher than the RD interest rate.
For example, if your RD offers 6.3 percent interest, the loan interest will be 8.3 percent.
How to Apply for a Loan
To apply for a loan against your RD, visit your post office, fill out the loan form, and submit it along with your passbook. The loan will be processed once all formalities are completed.
Interest on Post Office RD
If you invest Rs 5,000 every month in an RD, your total investment in five years will be Rs 3,00,000, and you’ll receive Rs 56,830 as interest at a rate of 6.7 percent.
For Rs 3,000 monthly investment, the total investment in five years will be Rs 1,80,000, and the interest will be Rs 34,097 according to the new interest rates.
Interest Rates on Various Post Office Schemes
Annual RD (Post Office RD): 6.7 percent (previously 6.5 percent)
National Savings Certificate (NSC): 7.7 percent
Kisan Vikas Patra (KVP): 7.5 percent (mature in 115 months)
Public Provident Fund (PPF): 7.1 percent
Sukanya Samridhi Account (Sukanya Samridhi Yojana): 8.2 percent
Senior Citizen Saving Scheme: 8.2 percent
Monthly Income Scheme (Post Office Monthly Scheme): 7.4 percent
