Investors wary of continued volatility in the share market may consider Office Recurring Deposit scheme for regular savings. The scheme is operated by the government, which provides the stated security assurance for deposits while offering interest of up to 6.7%.

The account is designed for people who want to build a larger fund through regular contributions. Deposits can begin with ₹100, and the source states that there is no maximum investment limit. This allows investors to choose their recurring contribution according to their savings plan.

How Office RD works

The maturity period for Office RD is 5 years. The account can also be closed before maturity, according to the conditions mentioned for the scheme. Investors may further extend the investment for another 5 years after the initial maturity period.

An account can be opened at any nearby Office. The recurring format means that the investor contributes a fixed amount regularly instead of investing the entire sum at one time. Over a longer period, these regular deposits can build a substantially larger fund.

The scheme also includes a loan facility, although it is subject to specific rules. After the account completes 1 year, the investor can apply for a loan based on the amount deposited in the account.

The source states that up to 50% of the deposited amount can be withdrawn as a loan. Interest on that loan is described as 2%. The available loan amount therefore depends on the deposit balance and the applicable account conditions.

Calculation for a ₹25 lakh-plus fund

The example in the source uses a monthly investment of ₹15,000. Over the first 5 years, the total fund is stated to reach ₹10,70,492. The interest component during that period is given as ₹1,70,492.

The same monthly investment is then extended for another 5 years. At the end of 10 years, the projected total fund is stated as ₹25,62,822. The interest earned during the full period is given as ₹7,52,822.

These figures describe the calculation presented for the scheme. The example depends on continuing the ₹15,000 monthly contribution through the extended period. It also uses the interest details and maturity structure stated in the source material.

What investors should note

Office RD combines a low starting deposit with a fixed maturity structure and an option to continue beyond the initial term. Its stated government backing is the main security feature highlighted in the scheme's description.

The account also provides flexibility through premature closure, extension after maturity and a loan option after 1 year. However, the loan is limited to 50% of the deposited amount and carries the stated 2% interest.

# Q. What is Office RD scheme?

It is a Office recurring deposit scheme in which investors make regular deposits to build a fund over time.

# Q. What is the minimum starting investment?

The account can be opened with a starting investment of ₹100.

# Q. What interest rate is mentioned?

The source states that the scheme offers interest of up to 6.7%.

# Q. What is the maturity period?

The initial maturity period is 5 years. The investment can then be extended for another 5 years.

# Q. How much must be invested monthly for the example?

The example uses a monthly investment of ₹15,000.

# Q. What fund is projected after 10 years?

The example states that the total fund would reach ₹25,62,822 after 10 years.

# Q. Is a loan available against the account?

Yes. The source states that investors can apply after 1 year, subject to the scheme's conditions.

# Q. How much of the deposit can be taken as a loan?

Up to 50% of the deposited amount can be taken as a loan, with interest stated at 2%.

Conclusion

Office RD example shows how a ₹15,000 monthly contribution could grow to ₹25,62,822 over 10 years, while the scheme also offers a five-year maturity term, extension options and a conditional loan facility.