Post Office RD Interest Rates, Opening Post Office Recurring Deposit Account (RD) through Online, Advance Deposits.
In the Recurring Deposit (RD) a fixed amount is deposited every month for 5 years. A minor amount saved every month will help to receive a great amount at the maturity of the scheme. This RD scheme ensures a guaranteed return since it running under Indian Government. The RD account can be started with minimum of Rs. 100 so that it encourages the habit of saving. The interest is deposited at Quarterly compound in the RD scheme. Any number of RD account can be opened by an individual.
Eligibility to Open a Post office Recurring Deposit Account (RD)
- An individual above 18 years and he/she should be an Indian.
- More than 1 individual (upto 3 individuals) can open a Joint account.
- In case of minor below 10 years, guardian can open an account.
- In case of mentally challenged person, guardian can open an account.
- In case of minor above 10 years, account can be opened with his own name.
Documents / KYC needed to open an account
- Passport size photo copies – 2.
- Aadhaar Card Xerox (any Identity and Address proof).
- Pan Card Xerox.
- Guardian Aadhar Card Xerox (in case of minor).
- Guardian Photo copy (in case of minor).
How to open a Post office Recurring Account (RD)
To open a Post office Recurring Deposit (RD), the steps are given below:
Step 1: Visit the nearest post office and get the application form.
Step 2: Fill the form with appropriate details.
Step 3: Submit the relevant documents, photos.
Step 4: Pay the deposit amount through cheque or cash.
How to Download Form for Opening Post Office Recurring Deposit Account (RD) through Online
The form can also be downloaded by using the following steps.
Step 1: Visit the India post’s official website https://www.indiapost.gov.in/.
Step 2: In the Menu select “Banking & Remittance“.
Step 3: Then select “Post Office Savings Scheme“.
Step 4: Click on “National Savings Recurring Deposit (RD)“.
Step 5: At the bottom, click on “Forms available” and download “Application Form for Opening of Account“.
Deposits and withdrawal from Post office Recurring Deposit Account (RD)
|Interest||5.8% per annum (quarterly compounded)|
|Minimum Monthly Deposit Amount||Rs. 100|
|Maximum Monthly Deposit Amount||No Limit|
|Subsequent Deposit (if the account is opened between 1st and 15th day of month)||Upto 15th of month|
|Subsequent Deposit (if the account is opened between 16th and last working day of month)||Till last working day of the month|
The nominees for the account can also be added.
Default and Fines in Post office Recurring Deposit Account (RD)
- If the subsequent deposit is not deposited on or before the suggested date a fine of Rs.1 is charged for Rs.100 denomination account.
- If there is pending in monthly defaults amount, then the depositor should first pay the defaulted amount along with fines and then pay the current month deposit.
- If there is pending for 4 monthly default amount continuously, then the account becomes discontinued and can be recovered within 2 months, if not done then the account becomes discontinued.
- If more than four of the monthly deposits are not missed, the account holder can, at his discretion, extend the maturity period of the account for several months and deposit the unpaid installments over the extended period.
Maturity Details in Recurring Deposit (RD)
|Interest Rate: 5.8% per annum|
|Maturity Period: 5 years (60 months)|
|Monthly Deposit||Maturity amount|
Advance Deposits in Post Office Recurring Deposits
In the RD account the advance deposits can be paid upto 5 years in an account. Rebate for Minimum 6 instalments (including monthly deposit) for Rs.100 denomination is Rs.10 for 6 months, Rs.40 for 12 months. The advance payment can be done at the time of opening of account or any time in-between the maturity period.
|Advance Month||RD Amount||Advance Amount||Rebate / Discount||Amount to pay|
|6||5000||5000 x 6 = 30000||(5000/100) x 10= 500||30,000 – 500 = 29,500|
|12||5000||5000 x 12 = 60000||(5000/100) x 40= 2000||60,000 – 2000 = 58,000|
Interest rate for post office RD account ?
The interest rate for post office RD account is 5.8% per annum.
What is the minimum upfront deposit to open a post office free account?
The minimum monthly deposit to open the post office RD account is Rs. 100.