Post Office RD is for 5 years. Whenever you open an RD account, the date for paying the RD installment is fixed at the same time. If you do not pay this installment on time, then you have to pay a penalty.
But when you are unable to deposit four consecutive installments of RD, then your RD account is closed. But if you do not want to close the RD, but due to some reason the account has been closed, then you can start it again. Know here what is the revival process of a closed account.
This is how you can restart your closed account
To restart a closed RD account, the customer has to apply. But this application has to be given within two months of 4 defaults. If you do not apply to restart the account within this period and 4 defaults are completed, then the account is completely closed. To restart a closed RD, you first have to deposit the outstanding installments of the previous month along with the penalty.
Also Read: Mutual Fund SIP: You can add Rs 3,55,33,879 after so many years with just a SIP of ₹2000
Fixed interest is not available on premature closure
Post Office RD cannot be closed before 3 years. If you close your post office account even a day before the maturity period, you are not given the interest of RD, but the same interest as the post office savings account. Currently, 4% interest is being given on post office savings account. Whereas the RD interest rate is 6.7 percent.
Who can open an RD account
Any person who is 18 years of age can open an RD account for himself in the post office. On the other hand, the guardian can open this account in the name of the child. If the child is more than 10 years of age and can sign a similar name, then he can open a post office RD account in his name. Apart from this, two to three people can also open a joint RD account for themselves.
