What is Post Office Recurring Deposit Scheme
Post Office Recurring Deposit Scheme is not only safe but also you can earn big by investing only Rs 100 per month. Also, there is no maximum limit on the amount that can be invested here. You can invest as much as you want.
Post Office Recurring Deposit Scheme Interest Rate
You have to open an RD account in the post office for at least 5 years. Every quarter (at the annual rate), interest is calculated on the deposit. It is then added to your account with compound interest at the end of every quarter. According to the India Post Office website, at present, 5.8 percent interest is being given on the RD scheme. This new rate is applicable from July 1, 2020. The central government announces the interest rates of all its small savings schemes every quarter.
You will get Rs 16 lakh like this
If you invest Rs 10,000 every month in the post office RD scheme, that too for 10 years, then you will get Rs 16.28 lakh on maturity. One thing to note is that if you do not deposit the RD installment on time, then you will have to pay a fine. Delay in installment will attract one per cent penalty every month.
account will be closed
Also, if you do not deposit four consecutive installments then your account will be closed. However, once the account is closed, it can be reactivated in the next two months. Post Office RD has the facility of both single account and joint account. There can be a maximum of three adults in a joint account. The account can also be opened in the name of children above the age of 10 years under the supervision of the guardian. The maturity of RD is five years, but by applying before maturity, you can extend it for another 5-5 years.
You can deposit at least Rs 100 per month in RD account. Nominee facility is also available at the time of account opening. Interest rates change on a quarterly basis. You can transfer RD account from one post office to another. There is also a facility to take a loan up to 50 percent of the deposit amount after one year, which can be repaid in a lump sum with interest. There is also a facility for online submission of RD through IPPB savings account.
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