Post Office RD: After how many installments of post office are bounced, the account is closed! If some installments are missed during the tenure of RD, can that RD be continued? Know here what is the rule about this-
Post Office RD: Many types of schemes are run in Post Office. 5-year Recurring Deposit (RD) has always been a favorite investment option for people. Through RD, you can save a lot of money by making small savings. Although banks have RD of different tenures, but in post office also the RD scheme is of 5 years and the interest on it is also quite good. Currently, interest is being given at the rate of 6.7%.
In RD, you have to deposit a fixed installment every month by a fixed date. If you do not deposit the installment by the due date in any month, then you have to pay a penalty for it. On the other hand, if you do not deposit many installments continuously, then the account can also be closed. Know here how many installments bounce before the post office account is closed. If some installments are missed during the tenure of RD, can that RD be continued? Know here
How many installments are not paid before the RD account is closed
If you do not deposit the installment of RD by the due date in any month, then you have to pay a penalty at the rate of 1% per month. But when you are unable to deposit four consecutive installments of RD, then your RD account is closed. However, you can also get the closed account reopened.
For this, you are given a grace period of two months. Meanwhile, you have to apply to restart the RD. To restart the closed RD, you first have to deposit the outstanding installments of the previous month along with the penalty. But if you do not submit any application within two months, then it is completely closed.
Option to continue RD without paying installments
If you feel that your financial condition is not good and you are facing difficulty in paying installments continuously for some time, then you can continue your RD even without paying installments. For this, you have to extend the maturity period of the RD account. But you have to do this work after understanding the situation beforehand. After not paying installments for four months, you do not get this option. But keep in mind that the extension time of maturity period can be extended only for the number of months you are not able to pay the installments.
