Post Office Scheme: The Post Office offers several best investment schemes, known for their high returns and security. One such scheme claims to turn a minimal investment of ₹100 per month into a whopping ₹14 lakh fund, making it an attractive option for long-term investors.
Key Schemes to Consider
Recurring Deposit (RD): The Post Office RD allows investors to deposit a fixed amount every month. It is a low-risk investment with assured returns. The current interest rate is around 5.8% per annum, and with consistent monthly contributions and compound interest, the fund can grow significantly over the years.
Public Provident Fund (PPF): With an interest rate of 7.1%, PPF is another excellent option for building a substantial corpus over time. The minimum deposit is ₹500 per year, and it allows tax deductions under Section 80C of the Income Tax Act. It has a maturity period of 15 years, and partial withdrawals are allowed after 5 years.
National Savings Monthly Income Account (MIS): Offering an interest rate of 7.4%, this scheme provides a steady monthly income after a 5-year maturity period. The maximum investment amount is ₹9 lakh for a joint account.
Sukanya Samriddhi Account (SSA): This scheme is specifically designed for the girl child and offers an 8% interest rate with a maximum investment of ₹1.5 lakh per year. It matures after 21 years or when the girl child reaches 18 years for educational purposes.
Potential Growth Example
If you start investing ₹100 monthly in a Post Office RD for a long term, say 30 years, with compounding interest, the returns can be quite substantial. Although direct conversion to ₹14 lakh might be overstated, using strategic investment in multiple schemes and reinvesting interest can help build a significant corpus.
| Scheme Name | Interest Rate | Minimum Investment | Maturity | Key Benefit |
|---|---|---|---|---|
| Recurring Deposit (RD) | 5.8% | ₹100 | 5 years | Low-risk, regular savings |
| Public Provident Fund (PPF) | 7.1% | ₹500/year | 15 years | Tax benefits, long-term growth |
| National Savings Monthly Income Account (MIS) | 7.4% | ₹1000 | 5 years | Monthly income |
| Sukanya Samriddhi Account (SSA) | 8% | ₹250 | 21 years | High returns, designed for girl child |
How to Invest
Interested investors can visit their nearest post office to open these accounts. With minimal paperwork and government backing, these schemes are not only secure but also offer consistent returns.
Investing small amounts consistently can help in achieving financial goals, such as retirement planning, children’s education, or simply building a sizable fund for the future.
