Post Office RD Scheme: Earn ₹25,000 Extra on ₹2,200 Monthly Investment 100% Safe Option If you are looking for a safe and guaranteed way to grow your money, the Post Office Recurring Deposit (RD) Scheme is one of the best options in India. It is especially good for people who want to invest small amounts every month and still get a good return in the end. Recently, calculations have shown that by investing ₹2,200 per month, you can earn around ₹25,000 extra at maturity. Let’s understand how this works in simple words.
What is Post Office RD Scheme?
The Post Office RD Scheme is a savings plan where you deposit a fixed amount of money every month for a fixed period, and in return, you get interest from the government. Since the scheme is backed by the Government of India, it is 100% safe and there is no risk of losing money. It is available at all post offices across the country.
Key Features of Post Office RD
- Tenure: 5 years (60 months)
- Minimum deposit: ₹100 per month (no maximum limit)
- Interest rate: Around 6.7% per annum (compounded quarterly)
- Who can open: Any Indian citizen, single or joint account
- Premature closure: Allowed after 3 years (with some conditions)
- Nomination facility: Available
How ₹2,200 per Month Gives ₹25,000 Extra
If you deposit ₹2,200 every month for 5 years, your total investment will be:
₹2,200 × 60 months = ₹1,32,000
Now, the Post Office will add interest at 6.7% per year (compounded quarterly). This interest will grow your money to around:
Maturity amount = ₹1,57,000 approx.
This means:
Extra earnings = ₹1,57,000 – ₹1,32,000 = ₹25,000 approx.
So, your ₹2,200 monthly deposit turns into ₹1.57 lakh in 5 years without any risk.
Why is it 100% Safe?
Unlike stock markets or private investment schemes, Post Office RD is a government-backed savings plan. Your money is completely safe because:
- It is run by India Post, a government department.
- Interest rates are fixed and declared by the Ministry of Finance every quarter.
- Even if the bank or company fails, your money is secure because it is under government guarantee.
How to Open a Post Office RD Account
- Visit your nearest post office.
- Fill out the RD account opening form.
- Submit your KYC documents (Aadhaar, PAN, etc.).
- Deposit your first installment (₹100 or more).
- You will get a passbook to keep track of your deposits and interest.
You can also open the account online if you have internet banking enabled with India Post.
Benefits of Post Office RD
- Small monthly savings – You don’t need a big amount to start; even ₹100 per month is enough.
- Guaranteed returns – No tension about market ups and downs.
- Government-backed – Complete safety of your hard-earned money.
- Loan facility – You can take a loan against your RD balance.
- Compounding effect – Interest is calculated every quarter, helping your money grow faster.
Example Calculation Table for ₹2,200 Monthly Deposit
| Year | Total Deposit Till Year-End | Interest Earned | Total Value |
| 1 | ₹26,400 | ₹920 approx. | ₹27,320 |
| 2 | ₹52,800 | ₹3,000 approx. | ₹55,800 |
| 3 | ₹79,200 | ₹5,800 approx. | ₹85,000 |
| 4 | ₹1,05,600 | ₹9,300 approx. | ₹1,14,900 |
| 5 | ₹1,32,000 | ₹25,000 approx. | ₹1,57,000 |
(Figures are approximate and depend on interest rate changes.)
Who Should Invest?
- People who want safe and fixed returns.
- Salaried individuals who can save small amounts monthly.
- Parents planning for children’s education or marriage after a few years.
- Retired people looking for risk-free investments.
Things to Remember
- You must deposit every month; skipping deposits may attract penalties.
- If you withdraw early (before 3 years), you may get lower interest.
- Interest rates can change every quarter for new accounts, but once you open the RD, your rate stays fixed for the full term.
Final Words
The Post Office RD Scheme is a perfect mix of safety, discipline, and guaranteed returns. If you can save ₹2,200 every month, you can turn it into ₹1.57 lakh in 5 years and earn around ₹25,000 extra without any risk. For people who want a 100% secure investment option, this scheme is one of the best choices in India.
