If you want to look for a safe and reliable method of growing savings, then Post Office Monthly Investment Schemes (MIS and RD) may be some of the best options. They are backed by the government, have guaranteed returns, and so are very much suitable for investors who are risk-averse. In simpler terms, here is how you make ₹45,459 as returns from a fixed deposit of ₹4,000 per month.
Working of the Scheme
The Post Office Recurring Deposit (RD) plan allows depositing an amount every month for a tenure of five years. The deposited sum earns interest, which is compounded quarterly, thereby allowing steady growth with time. When ₹4,000 is deposited monthly, it translates into a total injection of ₹2,40,000 over a span of five years.
Assuming a current interest rate of 6.7 percent per annum (2025), your maturity amount shall stand at nearly ₹2,85,459. Thus, the scheme guarantees you with a return of ₹45,459 by the end of the maturity period.
Reasons for This Scheme’s Popularity
Government-backed investment schemes such as this one provide safe avenues for investment. The Post Office RD creates that fixed income stream that does not vary with market returns, making it a favorite among conservative investors who opt for predictable growth.
Another competing factor is its flexibility-an individual can open an account alone or join with others and transfer the RD account from one post office to another anywhere in India.
Top Benefits of Post Office RD
Regular monthly saving encourages individuals into maintaining an economical attitude towards saving. Depending upon the financial aspirations, the proceeds from maturity can be employed as a lump sum amount towards children’s education, emergency fund, or further investment into higher-yielding instruments.
Final Thoughts
For those who require an investment backed by the government guarantees or safety while providing returns, then the Post Office RD is a suitable alternative. With a monthly deposit of ₹4,000, an individual can collect ₹2.85 lakh in five years, thereby offering a known and certain return of ₹45,459.