Central Government Scheme: Invest ₹3,500 in Post Office RD and Get Over ₹2.49 Lakh on Maturity

If you are looking for a Central Government Scheme that helps you build a substantial corpus through disciplined savings, the Post Office Recurring Deposit (RD) can be a smart choice. Backed by India Post, this scheme allows you to invest as little as ₹100 per month and earn assured returns over time.
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Let’s understand how investing ₹3,500 per month can grow into more than ₹2.49 lakh in just five years.

What Is the Post Office Recurring Deposit (RD) Scheme?


The Post Office Recurring Deposit (RD) is a small savings scheme that encourages individuals to deposit a fixed amount every month. It is ideal for salaried individuals, small business owners and anyone who wants to develop a regular savings habit without taking high risks.


Under this scheme:

  • A fixed amount is deposited every month
  • The tenure is 5 years (60 months)
  • Returns are guaranteed and backed by the Government of India

It is considered one of the safest investment options available through India Post.

Current Interest Rate on Post Office RD


At present, the Post Office RD scheme offers:


  • Interest Rate: 6.7% per annum
  • Minimum Monthly Deposit: ₹100
  • No upper limit on maximum deposit

The interest is compounded quarterly, which helps your savings grow steadily over the investment period.

Investment Calculation: How ₹3,500 Becomes ₹2.49 Lakh


Let’s see how disciplined savings can create a significant corpus:

  • Monthly Investment: ₹3,500
  • Investment Tenure: 60 months (5 years)
  • Total Investment: ₹2,10,000

At an interest rate of 6.7% per annum:

  • Maturity Amount: Approximately ₹2,49,776
  • Total Interest Earned: Around ₹39,776

This makes the Post Office RD a reliable option for achieving medium-term financial goals such as education expenses, travel plans or emergency funds.


Loan Facility in Post Office RD Scheme


One of the key advantages of this scheme is the loan facility.

Here’s how it works:

  • The RD account must be active for at least 12 months
  • After 12 consecutive deposits, you become eligible for a loan
  • You can borrow up to 50% of the total amount deposited
  • The loan can be repaid either in a lump sum or through monthly instalments

This feature provides financial flexibility without breaking your savings habit.

Account Opening Rules and Eligibility


To open a Post Office RD account:

  • You must have a savings account with India Post
  • You can choose your monthly deposit amount based on your financial capacity
  • The tenure is 5 years, but it can be extended for another 5 years if desired

The scheme is open to individuals who want a safe and government-backed investment avenue.

Why Choose Post Office RD?


The Post Office RD scheme is suitable for:


  • Risk-averse investors
  • First-time savers
  • Individuals planning for short- to medium-term financial goals
  • People looking for guaranteed returns

With government backing, fixed returns and the benefit of disciplined saving, this Central Government Scheme stands out as a secure and practical investment option.

If you can invest ₹3,500 every month, you can build a corpus of nearly ₹2.50 lakh in five years through the Post Office Recurring Deposit scheme. It is a simple, safe and structured way to grow your money without market risks.

For those who prefer stability over volatility, this government savings scheme remains a dependable financial tool.