The maturity of Post Office Recurring Deposit is 5 years. In this scheme, every month some rupees have to be deposited. After 60 months, the lump sum amount is received along with the interest. In this, at least 100 rupees have to be deposited every month.
Today we are going to tell about such a savings scheme of the post office, whose maturity is of 5 years. Under this scheme, some deposit has to be made every month, on maturity, a lump sum amount along with interest is available. Currently, the interest rate for this scheme is 5.8 per cent per annum, although it is compounded on a quarterly basis.
The name of this post office scheme is Recurring Deposits. In this, a minimum of Rs 100 can be deposited every month. Beyond this, this amount can be in the multiple of 10. Post Office Recurring Deposit Account can be opened by a single adult. Three people together can also open it jointly. In the name of the minor, his guardian and a minor above the age of 10 years can also open this account in his own name. An individual can open multiple recurring accounts for himself.
Let us know about how to invest in this scheme. Account opening can be done with the help of cash and cheque. There is no limit on the maximum amount. If the account opening is between 1-15th, then money should be deposited in the account before 15th of every month. On account opening after 15th, every month after 15th, the amount should be deposited by the last working day of the month. If the amount is not deposited by the due date then default fee will have to be paid. This is Re 1 per month for every Rs 100. Up to four defaults are acceptable. After that the account will be disconnected. After that the account can be renewed again within two months. If this is not done then that account cannot be revived again.
If you make an advance deposit in this scheme, then some exemption is available separately. If you make an advance deposit for six months, you will get a discount of 10 percent of the monthly premium. If someone deposits one thousand every month, then for six months he will have to deposit only 5900 instead of 6000. If he makes a lump sum deposit for one year, he will get a rebate of 40 per cent of the monthly premium. In this way the total deposit for one year will be Rs 11600 instead of 12000.
Talking about the loan, after one year one can get loan up to 50 percent of the deposited amount. Its repayment can be done in lump sum or in installments. The interest rate will be 2% separately on recurring deposit interest. Although this account is for 5 years, but after 3 years pre-mature closure can be done.
According to the calculator, if you deposit 10 thousand in the post office recurring deposit every month, then at the present interest rate of 5.8 percent, this amount will become Rs 696967 on maturity. The total deposit amount in 5 years will be Rs.6 lakh and the interest amount will be Rs.99967. In this way the maturity amount will be around 7 lakhs.