According to the Ministry of Finance, the interest rates for modest savings programs have changed for the quarter between July and September. Recurring Deposit for 5 Years has become more appealing due to this modification. The government dramatically raised interest rates by 30 basis points. Interest will now be paid 6.5 percent annually instead of 6.2 percent on the post office's recurring deposit. In addition, the interest rate on time deposits for one and two years was raised by ten basis points.
New interest rate effective from July 1, 2023
Beginning on July 1, 2023, the new interest rate on Post Office Recurring Deposits will be in effect and last through September 30, 2023. This program is designed for medium-term investors. There is an annual interest rate of 6.5 percent. However, the calculation is based on quarterly compound interest. Deposits must start with a minimum of Rs. 100 and can then be made in any multiples of Rs. 100. Let us inform you that the post office's recurring deposit, unlike bank deposits, is only valid for five years. Later, it may be renewed for another five years. Only the previous interest rates will be offered throughout the prolongation.
By depositing 10 thousand, you will get 7.10 lakh.
The Post Office RD Calculator estimates that if an investor deposits 10,000 rupees each month for five years, he will receive seven lahks 10,000 rupees. His entire deposit will be Rs. 6 lahks, and the interest would be roughly Rs. 1 lakh 10,000.
By which date it is necessary to submit the installment?
If you also want to start a recurring deposit account at the post office, let them know that deposits must be made by the 15th of every month if the account is opened between January 1 and 15. The installment must be deposited at the end of each month if the account is opened a month after the 15th.
The haste of 1 day will cause a big loss.
Once 12 installments have been deposited, a loan option becomes available. The interest rate will be 2% more than the interest rate on the RD account. Only savings account interest will be paid if the account is closed even one day before the five-year mark. The interest rate on savings accounts at the moment is 4%.