Post Office Scheme: How A ₹200 Deposit Can Grow Into ₹10 Lakh

Building wealth does not always require high-risk investments or deep knowledge of the stock market. With the right planning and discipline, even small daily savings can turn into a strong financial cushion. One such reliable option is the Post Office Recurring Deposit (RD) scheme, where investing just ₹200 a day can help you build a fund of over ₹10 lakh over time.

Save Small, Stay Consistent

The strength of this scheme lies in consistency. Saving ₹200 a day translates to ₹6,000 per month, an amount that feels manageable for many households. Over time, these small contributions add up without putting pressure on your monthly budget.

Safe Returns With Government Guarantee

The Post Office RD scheme currently offers an interest rate of 6.7%. Since post offices operate under the Government of India, your investment is fully backed and carries very low risk. This makes it an ideal choice for conservative investors who prioritise safety over high volatility.

Opening an account is simple. You can start with just ₹100 and begin monthly deposits immediately. Any Indian citizen aged 18 years or above can open an account at their nearest post office.

Five-Year Term With Extension Option

The recurring deposit matures in five years. However, investors have the option to extend the account for another five years after maturity. This extension plays a crucial role in wealth creation, allowing your money to grow further through continued deposits and compounded interest.

Loan Facility For Emergencies

The scheme also offers a useful loan facility. After completing one year, you can borrow up to 50% of your deposited amount. The interest charged is only 2% higher than the RD rate, making it a cost-effective solution during financial emergencies.

Flexible Withdrawal Benefits

If you are unable to continue for the full term, the scheme allows pre-maturity withdrawal under certain conditions. In the unfortunate event of the account holder’s death, the nominee can easily withdraw the accumulated amount.

How ₹200 A Day Becomes ₹10 Lakh

Depositing ₹6,000 per month for five years results in total savings of ₹3.6 lakh, along with interest of about ₹68,197, taking the amount to roughly ₹4.28 lakh. After extending the scheme to ten years, total deposits reach ₹7.2 lakh, with interest of around ₹2.05 lakh. This brings the final maturity amount to approximately ₹10.25 lakh.

With steady discipline and zero market risk, the Post Office RD scheme proves that small daily savings can quietly grow into a powerful financial milestone.