PO RD Account: If you want to save some money from your hard earned money and deposit it somewhere and want your money to be safe, then opening a recurring deposit account in the post office can be a better option.
The biggest feature of this scheme of the postal department is that on depositing money in it, customers are given compound interest every three months and you can open an account with a minimum of Rs 100. After depositing money continuously for five years in this, you can accumulate a good amount of money. Come, let’s know about this scheme of the postal department.
How much interest is received on Post Office Recurring Deposit?
According to India Post, the official website of the Indian Postal Department, the government has revised the interest rates on deposits of recurring deposit accounts on January 1, 2024. According to the new rule, customers get 6.7 percent compound interest every three months on recurring deposits. Any citizen of India can open a recurring deposit account in the post office by paying only Rs 100. There is no maximum limit for opening an account and making deposits.
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Who can open a recurring deposit account in post office?
According to the India Post website, any adult citizen of India can open a recurring deposit account in the post office. If someone is a minor, the account will be opened in the name of his/her parents or guardian. If someone is mentally challenged, the account will be opened in the name of the guardian. A minor above 10 years of age can open an account in his/her own name. Any number of recurring deposit accounts can be opened. In this, customers are also given the facility to open a joint account for more than one person, two or three persons.
How to open a recurring deposit account in post office?
According to the official website of the postal department India Post, recurring deposit account can be opened by paying cash or by cheque. In case of payment by cheque, the condition is that the date of deposit of customer’s money in the recurring account will be considered as the date of clearance of the cheque.
A minimum deposit of Rs 100 or more than that can be made in a recurring account every month in multiples of Rs 10. If the account is opened by the 15th of a calendar month, subsequent deposits will be made by the 15th day of the month. If the account is opened between the 16th day and the last working day of a calendar month, subsequent deposits will be made by the last working day of the month.
How much discount is available on making advance deposit in recurring account?
The specialty of the post office recurring deposit scheme is that advance deposit can also be made in this account. The information given on the website of the postal department states that if the recurring deposit account is not closed, then advance deposit can also be made in the account for five years. If a customer makes an advance deposit of six months’ amount, then a discount of Rs 10 is available on the denomination of Rs 100 for 6 months and up to Rs 40 for 12 months. Advance deposit can be made at the time of opening the account or at any time thereafter.
Is there a facility to take loan against recurring deposit account?
Information has been given on the website of the Postal Department that if a customer’s recurring deposit account has not been closed and he has deposited 12 consecutive installments, then about 50 percent of the remaining deposit amount can be withdrawn as a loan. This loan can be taken as a lump sum or installment.
2 percent or recurring deposit interest rate will be applicable on the loan taken from the Postal Department Recurring Deposit Account. Interest will be calculated from the date of withdrawal of the loan amount to the date of repayment. If the loan is not repaid by the maturity date, then the loan and interest will be deducted from the matured amount of the RD account.
