Post Office Recurring Deposit (RD) is also included in the small savings schemes of the post office. Let us know about this scheme in detail.
If you are thinking of investing in the coming days, then you can do it in the savings schemes of the post office. You definitely get good returns in these schemes. Also, the money invested in it is also completely safe. If the bank defaults , then you get back only Rs 5 lakh. But this is not the case in the Post Office . Apart from this, investment in post office savings schemes can be started with a very small amount. Post Office Recurring Deposit (RD) is also included in the small savings schemes of the post office. Let us know about this scheme in detail.
Rate of interest
At present, the interest rate of 5.8 percent per annum is present in the RD scheme of the post office. The interest is compounded on a quarterly basis. The interest rate is applicable from 1st April 2020.
Investment amount
In the Recurring Deposit Scheme of the Post Office, you will have to invest at least Rs 100 in a month. In this, any amount can be invested in multiples of Rs 10. There is no maximum investment limit in this small savings scheme.
Who can open account?
In this small savings scheme, one adult or up to three adults can open a joint account together. Apart from this, the guardian can also open the account on behalf of a minor or on behalf of a person of weak mind. A minor above the age of 10 years can also open an account in the post office in his own name. Any number of accounts can be opened in this scheme.
Maturity
In the post office RD scheme, there is maturity after five years from the date of opening the account. (ie 60 monthly deposit) The account can be extended for a further period of five years by making an application at the concerned post office. The interest rate applicable during the extended period will be the same at which the account was opened.
The extended account can be closed at any time during the extended period. For completed years, RD interest rate will be applicable and for tenures less than one year, Post Office Savings Account interest rate will be applicable. An RD account can also be kept without any deposit for a period of five years from the date of maturity.
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