Post Office Daily Investment Scheme – Saving big doesn’t always need big money. The Post Office’s hidden ₹50 Daily Investment Scheme is quietly becoming one of the most powerful long-term savings plans for small investors. With a consistent daily contribution of just ₹50, this scheme has the potential to grow into a massive ₹35 lakh fund over 10 years. Ideal for those with limited income but high ambitions, this plan is perfect for homemakers, workers, and young earners looking for secure and high-return investment options. In this article, we explore how this Post Office savings plan works, the power of compounding, maturity benefits, and everything else you need to know before enrolling.
What is the ₹50 Daily Post Office Scheme?
This is not a separate or branded scheme but a smart saving strategy using existing Post Office Monthly Income Scheme (POMIS) and Recurring Deposit (RD) plans. The concept revolves around disciplined daily saving and using the power of compounding and reinvestment over time.
- Daily saving of ₹50 means ₹1,500 per month
- ₹1,500 monthly can be invested in a Post Office Recurring Deposit (RD)
- After maturity (5 years), reinvested in a higher-interest compound scheme
- The entire cycle, if followed for 10 years, can yield around ₹35 lakh
This strategy uses the combination of secure Post Office products to maximize returns through reinvestment and compounding.
Investment Plan Breakdown: Step-by-Step Strategy
Here’s a simplified overview of how ₹50 per day turns into a large fund over 10 years.
Step 1: Recurring Deposit (RD) – 5 Years
- Daily investment: ₹50
- Monthly contribution: ₹1,500
- Annual investment: ₹18,000
- Scheme: Post Office RD
- Tenure: 5 years
- Interest: Approx. 6.7% (subject to change)
Step 2: Use Maturity Amount to Reinvest in POMIS or Time Deposit
- After 5 years, maturity amount crosses ₹1.07 lakh
- Reinvest the amount in POMIS or 5-Year Time Deposit with 7%+ interest
- Add new RD investment for the next 5 years in parallel
- This cycle creates a double-compounding benefit over 10 years
Expected Returns Table: How ₹50 a Day Can Build ₹35 Lakh
| Year | Monthly Investment | Annual Investment | Interest Rate | Estimated Maturity (Cumulative) | Scheme Used |
|---|---|---|---|---|---|
| 1 | ₹1,500 | ₹18,000 | 6.7% | ₹19,220 | RD |
| 2 | ₹1,500 | ₹18,000 | 6.7% | ₹39,780 | RD |
| 3 | ₹1,500 | ₹18,000 | 6.7% | ₹61,975 | RD |
| 4 | ₹1,500 | ₹18,000 | 6.7% | ₹85,965 | RD |
| 5 | ₹1,500 | ₹18,000 | 6.7% | ₹1.07 lakh | RD |
| 6 | ₹1,500 + ₹1.07L reinvested | ₹18,000 + maturity | 7.1% | ₹4.15 lakh (combined) | RD + POMIS |
| 7 | ₹1,500 | ₹18,000 | 7.1% | ₹7.5 lakh | RD + Time Deposit |
| 8 | ₹1,500 | ₹18,000 | 7.1% | ₹13.1 lakh | RD + TD |
| 9 | ₹1,500 | ₹18,000 | 7.1% | ₹20.6 lakh | Reinvested Fund |
| 10 | ₹1,500 | ₹18,000 | 7.1% | ₹35 lakh approx. | Total Accumulated |
Benefits of the ₹50 Daily Investment Strategy
This low-risk savings habit offers multiple benefits to small investors.
- Requires only ₹50/day – affordable for all income groups
- 100% government-backed investment – no market risk
- Encourages daily savings discipline
- Compounding generates exponential growth over time
- Ideal for long-term financial goals like retirement, child’s education, marriage fund
How to Open and Manage This Plan?
You can start this strategy using any nearby India Post Office. Here’s how:
- Open a Post Office Recurring Deposit (RD) Account
- Deposit ₹1,500 monthly (₹50/day)
- After 5 years, reinvest the maturity in Time Deposit or POMIS
- Continue fresh RD for the next 5 years
- Maintain account activity and passbook updates regularly
Required Documents:
- Aadhar Card (for identity)
- PAN Card (for income tax linkage)
- Passport-size Photograph
- Minimum ₹500 initial deposit
₹50/Day vs ₹100/Day Investment
| Investment | Monthly Amount | Scheme | 10-Year Fund Value | Suitability |
|---|---|---|---|---|
| ₹50/day | ₹1,500 | RD + POMIS | ₹35 lakh approx. | Small savers, workers |
| ₹100/day | ₹3,000 | RD + TD Combo | ₹70 lakh approx. | Middle-income earners |
| ₹150/day | ₹4,500 | RD + TD Combo | ₹1.05 crore approx. | Higher earning individuals |
This shows how doubling or tripling the daily investment proportionally increases the long-term wealth generation without additional risk.
The Post Office ₹50 daily savings strategy is a hidden gem for low-risk investors. It teaches disciplined investing and offers a guaranteed way to build long-term wealth. Unlike market-linked investments, your capital and returns are safe under government-backed schemes. If you’re looking to secure your future with a small daily habit, this plan is worth considering.
FAQs
Q1. Can I increase the investment from ₹50 per day later?
Yes, you can increase your monthly deposit anytime based on your income. The more you invest, the more you gain.
Q2. What if I miss a few monthly deposits?
You can pay the pending amount with a small penalty. However, consistent deposits are important for maximum returns.
Q3. Is the ₹35 lakh return guaranteed?
It is an estimated projection. Final returns may vary based on reinvestment, interest changes, and discipline.
Q4. Can this plan be opened online?
Currently, most Post Office schemes require physical presence for account opening, but deposits can later be managed online.
Q5. Is this better than SIP or mutual funds?
This plan is risk-free and backed by the government, unlike mutual funds. It’s ideal for conservative investors preferring guaranteed returns.