Post Office Recurring Deposit Account: If you are going to get FD of savings money in the bank, then just wait. Would it be better if you were guaranteed more interest and investment safety than a bank FD? Yes, if you invest money in the recurring deposit scheme of the Post Office, then you will get more interest here. Bank FDs are generally not getting more than 5.50 percent interest at present.
post office recurring deposit
Recurring deposit account is opened in the post office for five years. Interest is calculated every quarter (at annual rate) on the money deposited in it and it is added (including compound interest) to your account at the end of every quarter.
How much interest is getting now
According to the website of India Post, the RD scheme is currently getting 5.8 percent interest. This new rate is applicable from 1st April 2020. The Government of India reviews the interest rate of small savings schemes every quarter.
You can invest minimum Rs 100
You can invest a minimum of Rs 100 per month in this RD scheme. You can deposit any amount more than this in multiples of 10. There is no limit on the maximum deposit amount. Any large amount in the multiple of ten can be deposited in the RD account.
You can open RD account
Any person can open as many RD accounts in his name. There is also no restriction on the maximum account number. Yes, this account can be opened only individually and not in the name of family (HUF) or organization. Two adult persons together can also open a joint RD account. An individual RD account already opened can be converted into a joint account at any time.
When can RD account be closed
If you do not deposit the RD installment by the due date, then along with the late installment, you will also have to deposit a penalty at the rate of one percent every month separately. Also, if four consecutive installments are not deposited then the account will be closed. However, even after the account is closed, it can be reactivated for the next two months. Yes, for this one has to apply at the Home Post Office and deposit all the previous installments and penalty amount along with the new installment.