The Department of Posts is
the backbone of the country’s communication. The Department of Post is commonly
known as India Post. India Post is playing a crucial role in the country’s
socio-economic development. It offers various services to the Indian citizens such
as delivering mails, providing life insurance, accepting deposits under Small Savings Schemes, and providing retail services like bill collection etc. In this
post, let’s take a look at the Recurring Deposit Account (Post Office RD
Account).
Recurring Deposit (RD) Account from India Post
India Post offers a 5-Year
Recurring Deposit Account is one of the Small Savings Schemes offered by India
Post. RD Account is a systematic and disciplined deposit scheme allowing you to
add to your savings that offers guaranteed returns over a fixed period of time.
The Recurring Deposit Account is an ideal investment option, where you have to
deposit a small but fixed equal amount of money each month for a period of 60
months.
Eligibility for opening a Recurring Deposit Account
1. Recurring Deposit Account
can be opened by any resident adult.
2. Joint RD account can be
opened by two adults.
3. RD Account can be opened
in the name of a minor through guardians.
4. A minor of 10 years and
above age can open and operate RD account.
5. Single RD account can be
converted into a Joint Account and Vice Versa.
6. Minor after attaining
majority has to apply for conversion of the account in his name.
Rate of interest
From 01.04.2020, interest
rates are 5.8% per annum (quarterly compounded). The RD account can be continued for another 5 years on year to
year basis.
Maturity Period of the scheme
The maturity period of the
scheme is 5 years (60 months). The recurring account can be continued for
another 5 years on year to year basis with or without further deposits.
Minimum and maximum Amount for the opening of the account
1. Minimum Rs. 10/- per
month or any amount in multiples of Rs. 5/-.
2. There is no maximum limit.
3. The subsequent deposit can be made up to the 15th day of next month.
4. The account can be opened by cash/cheque and in case of the cheque, the date of deposit shall be the date of presentation of the cheque.
2. There is no maximum limit.
3. The subsequent deposit can be made up to the 15th day of next month.
4. The account can be opened by cash/cheque and in case of the cheque, the date of deposit shall be the date of presentation of the cheque.
Number of accounts allowed
Any number of recurring deposit account
can be opened in any post office.
Documents Required
Post Office Recurring
Deposit Account opening form, PAN card, address proof and ID proof for KYC
verification purpose.
Account transfer facility
The account can be
transferred from one post office to another.
Nomination facility in RD Account
Nomination facility is
available at the time of opening and also after the opening of the account.
Fine and Penalties for Delayed RD Deposits
1. If the subsequent deposit
is not made up to the prescribed day, a default fee is charged for each
default, default fee @ 5 paise for every 5 rupees shall be charged.
2. After 4 regular defaults,
the account becomes discontinued and can be revived in two months but if the
same is not revived within this period, no further deposit can be made.
3. If in any RD account,
there is the monthly default(s) the depositor has to first pay the defaulted
monthly deposit with default fee and then pay the current month deposit. This
will be applicable for both CBS and non CBS Post offices.
4. In case of deposits made
in RD accounts by Cheque, date of credit of Cheque into Government accounts
shall be treated as the date of deposit.
Rebate on Advance Deposit
There is a rebate on advance
deposit of at least 6 installments.
Premature Withdrawal from Recurring Deposit account
One withdrawal up to 50% of the
balance allowed after one year of opening the account.
Also read: SBI Recurring Deposit | SBI RD Account
What if Depositor Dies
Full maturity value allowed
on RD Accounts restricted to that of Rs. 50/- denomination in case of death of
depositor subject to fulfillment of certain conditions.
Also read: Post office monthly income scheme account
Also read: Post office time deposit scheme
Also read: SBI Recurring Deposit | SBI RD Account
Also read: Post office small saving schemes
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