Post Office Recurring Deposit Account is a deposit scheme offered by India Post. It helps save money each month for a pre-specified time period. Post Office Recurring Deposit account can be easily opened and offers a host of benefits like premature withdrawal of deposits, interest payment, minimum deposit amount, nomination facility and so on. The Post Office Recurring Deposit scheme allows investors save and earn interest, thereby offering attractive returns on maturity.
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Post office recurring deposit accounts can be opened with a minimum monthly investment of just Rs 10 and can be availed across income groups. You can build an attractive corpus by investing in a recurring deposit account.
Unlike FD, the recurring deposit requires monthly payments of a pre-specified amount over a fixed time period. The rate of interest offered on these deposits is 7.3% a year, which is compounded on a quarterly basis.
Opening a post office RD account is a simple and hassle-free process. You can visit any post office branch for opening a post office RD account. Application forms are available for opening the accounts, which must be filled with the necessary details.
Submit the duly filled application form along with KYC documents. Separate application forms are available for senior citizen RD accounts. There are no restrictions on the number of recurring deposit accounts you can hold. The post office account scheme can be transferred across any post office in India.
Once the account is opened, the payments can be made via cash payment or by cheque. There is no online facility for paying the monthly installments. For payments made through cheque, the date of presentation of the cheque is the date of the deposit.
Post office recurring deposit schemes are popular in rural and urban areas and mainly encourage the low-income group and the rural population, save and earn better returns. Post office recurring schemes can be availed by a resident Indian, just by submitting KYC documents. However, the applicant must be at least 18 years of age. Minors, who are at least 10 years of age, can also open Post office recurring scheme accounts.
You can open Post office recurring deposit account by depositing a minimum amount of Rs 10. There are no specified upper limits on these deposits. These schemes are immensely popular in rural and semi-urban areas and allow you make savings for the future. To inculcate the habit of saving in children, the Post Office Recurring deposit accounts can also be opened by minors who are above 10 years of age. So, the minimum deposit is low which makes it accessible across various age groups and income groups.
Given below are the salient features of post office recurring deposits:
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