Saving Tips: Know How Saving Rs 5000/Month Can Give A Return Of Rs 3 Lakh In Five Yrs

More money can be made from savings in the post office as compared to banks. If 5,000 rupees per month are deposited in the post office RD scheme, the amount can be up to Rs 3.48 lakh in five years. 

There was a time when banks used to give double the amount on savings in five years. But that has become a thing of the past. Nowadays no bank pays more than 3-4 percent interest on savings. There are many other savings schemes other than banks that can help you make more money. One of them is the Post Office Savings Scheme. More importantly, there is no worry about money sinking in the post office scheme because the government gives a 100% guarantee of this risk. Most people are concerned about the loss of money. The post office is the only option where there are guaranteed returns. The best way to maximize savings on investment is through the Post Office Savings Scheme. The recurring deposit (RD) of the post office is an option for this. There will be fixed interest on money, as well as the money will remain completely safe. 

5.8 percent interest rate in RD
There is a sovereign guarantee of the Government of India on post office deposits, while deposits in banks are protected only up to a maximum of 5 lakhs. In this way, by investing small savings every month, you can create a corpus of lakhs. Post office recurring deposits encourage small savings. RD matures in 5 years, but it can be extended further for another 5 years. A minimum of Rs 100 has to be deposited every month in the RD of the post office. The deposit should be in multiples of Rs.10. There is no maximum investment limit in this. The interest rate on RD is 5.8 percent. 

This is how five thousand per month will make 3.48 lakhs
If a person opens an RD account in the post office. Post office gives maximum interest on savings. Under the RD scheme, the Post Office will pay interest on RD at the rate of 5.8 percent. No bank will give this much interest. Interest is also calculated on quarterly basis. Accordingly, suppose a person invests Rs 5000 every month in the RD account of the post office for 5 years. Since this amount will mature in five years and the rate of interest is 5.8 percent, so after five years, he will get a total of Rs 3.48 lakh. 

Some other facilities of the post office
The post office also offers many other facilities on small savings. Here RD has the facility of both single account and joint account. Under the RD scheme, there will be a facility of pre-mature closure after 3 years from the date of opening of the account. Interest rates change on a quarterly basis. There is also a one-time loan facility up to 50% of the deposited amount after one year. Which can be repaid in lump sum with interest.
 
The government takes the guarantee for money return 
If the postal department fails to return the money to the investors under any circumstances, then the government steps in and guarantees the investors' money. In any case, money does not get stuck here. The government uses the money deposited in the post office scheme for its purposes. For this reason, the government also gives a guarantee on this money. On the other hand, your entire money in the bank is not 100% safe. If a bank defaults, then DICGC i.e. Deposit Insurance and Credit Guarantee Corporation guarantees security up to only Rs 5 lakh to the customers. This rule applies to all branches of the bank. It includes both principal and interest. That is if adding both is more than 5 lakhs, then only 5 lakhs is considered safe.