The Post Office Recurring Deposit (RD) is a scheme that promotes small savings.
Post Office Recurring Deposit: For such investors, who are able to save up to 10 thousand in a month, it is most important for them to put money in a place where guaranteed returns are given in a given time and money is also 100 percent safe. The post office i.e. the Recurring Deposit (RD) of the post office is such an option, where you will get a fixed interest on your deposit, plus the money will be completely safe. Because, there is the sovereign guarantee of the Government of India on the post office deposits, while only a maximum of 5 lakhs are safe on deposits in banks. In this way, you can create millions of funds by investing small savings every month.
The Post Office Recurring Deposit (RD) is one such scheme, which promotes small savings. By the way, its maturity is 5 years, but you can extend it even further for 5-5 years by applying. A minimum of 100 rupees has to be deposited in the post office RD every month. The deposit should be in multiples of Rs. There is no maximum investment limit.
10 lakh to 10 million to meet so many lakhs
Suppose an investor invests 10 thousand rupees in the post office RD every month for 10 years, then he will get Rs 16.28 lakh on maturity. Currently, 5.8 percent interest is being received on the post office RD. Compounding of interest is done on a quarterly basis.
- Post office RD has the facility of both single account and joint account.
- A joint account can have a maximum of 3 adults.
- Names of children above 10 years of age can also be opened by the account guardian under his supervision.
- RD’s maturity is 5 years, but by applying before maturity, you can extend it for the next 5-5 years.
- You can deposit at least 100 rupees per month in RD account and the maximum amount in multiples of 10.
- Nomination facility is also available at the time of account opening.
- After 3 years from the date of opening the account, the facility of premature closure will be available. Interest rates change on a quarterly basis.
- The account can be transferred from one post office to another.
- The penalty has to be paid for not depositing on time. It will be 1 rupee per 100 rupees.
- There is also a facility to take a loan up to 50 percent of the deposit after one year. Which can be repaid outright with interest.
- There is also a facility to submit online through IPPB saving account.