In Recurring Deposit In Post Office, the investor can deposit money little by little every month and this process of depositing money lasts for 5 years. During these 5 years, the interest rate does not change and the investor gets the same interest for the whole five years at the rate at which the account was opened.
5-Year Recurring Deposit Account can be opened only for 5 years. Once the period of 5 years is over, it can be extended again for another 5 years. Overall, the Post Office RD Account can be continued for 10 years. The investor can open this account jointly with his spouse, child, guardian, or acquaintance. Any number of accounts can be opened for Post Office Recurring Deposit.
What Is Recurring Deposit In Post Office?
Where other schemes of the post office are running, the Recurring Deposit In Post Office ie it is also working as the main scheme. In this, you can make big capital by investing less money every month. You can open several recurring deposit accounts in your name, not one or two or three.
Post Office Recurring Deposits Scheme is an investment scheme that allows investors to make a fixed amount of monthly deposits for a tenure of 5 years. Investors earn a fixed interest rate of 5.8% per annum which is quarterly. The capital invested by the depositor is paid back at the time of maturity of the scheme along with the interest earned on the deposit.
Also Read: Monthly Pension Scheme In Post Office
Recurring Deposit In Post Office | Eligibility Criteria
The account can be easily opened by cash or cheque. In the case of cheques, the date of deposit will be the date of sanction of the check and there is no limit on the maximum number of accounts in the post office. For this it is necessary to have the following eligibility:-
- A single person can open this account.
- A joint account can be opened, in which there can be 2 or more account holders.
- If the minor opening the account is a minor above the age of 10 years, then a joint account can be opened by including a guardian on his behalf.
Recurring Deposit In Post Office | Required Document
There are many documents inside it, in which Personal Document is the main:-
- Aadhaar Card
- Pan Card
- Voter Card
- Email ID, Phone Number
- Address Proof:- Ration Card, Electricity Bill
Recurring Deposit In Post Office | Interest Rate
A depositor who is not closed after depositing 12 installments and keeping the account in force for 1 year can avail credit facility of up to 50% of the loan balance in the account. Post Office Savings Schemes Recurring Deposit Account is a very popular scheme. Interest is available on this scheme at the rate of 5.8 percent every year.
The loan can be repaid in a lump sum or in equated monthly installments. The interest on the loan will be applicable as the rate of interest +2% applicable on the RD account. Interest will be calculated from the date of payment to the date of withdrawal of deposit. If the loan is not repaid till maturity, the loan and interest will be deducted from the maturity value of the RD account.
Recurring Deposit In Post Office | Features
- The maturity period of the Post Office RD Scheme is 5 years which can be extended by 5 years by submitting an application at the branch.
- The interest rates are subject to revision every quarter by the government. The interest rate offered by the Post Office RD Scheme is 5.8% per annum, which is quarterly.
- There is no upper limit for investment. The minimum amount required to invest in the scheme is Rs 100 per month or multiples of Rs 10 thereafter.
- Since the scheme is backed by the Government of India, there is very little risk involved. The chances of capital loss or default on interest payment are very less and hence, it is considered a very safe mode of investment.
- Like any other postal savings scheme, investors are provided with a nomination facility that allows the account holder to nominate a person, to receive payment in case of the sudden demise of the account holder. This facility can be opted for at the time of account opening and also during the tenure of the plan.
- A transfer facility is provided to the investors which allow the investors to transfer the account from one post office branch to another across the country.
- This plan provides the facility of rebate for investment. The discount is given on an advance deposit of at least 6 installments, which is Rs 10 for 6 months and Rs 40 for 12 months. Rebate will be paid in denominations of Rs.100.
- Premature closure is allowed after 3 years from the date of opening of the account, and the rate of interest on the prematurely closed account is payable to the Post Office Savings Account at the rate applicable from time to time.
- The scheme provides a loan facility to the depositors in which investors can avail a loan of up to 50% of the balance amount after 1 year, to be repaid in a single payment with the applicable interest rate.
- The scheme allows online deposit by the depositor which can be done through Intra Operable NetBanking / Mobile Banking / IPPB Savings Account.
Also Read: Post Office Savings Account Scheme
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