RD in Post Office
Introduction
Are you planning to save your Money in Post office?
Don’t you know which plan is best suitable for you.
In this post, I will tell you about a Recurring Deposit scheme in in post office i.e. National Savings Recurring Deposit Account (RD). In Simple, it is a “Post office Recurring Deposit Account“.
In this scheme, How much amount can be deposited either Rs.10,000/- or Rs.20,000/- and let’s see how much amount we will get at maturity time and how much interest will be paid ?
And also learn
– To whom TD is meant for,
– How much is the Minimum deposit limit,
– How are the Interest rates?
Let’s get started with RD in Post Office..!!
1. Meaning of RD in Post Office ?
When you have some money in hand, then, you can deposit a fixed portion of money into the bank on a regular basis to earn some decent and safe returns on the money deposited is called a “Recurring Deposit (RD)“
The Recurring Deposit is meant for both the Salaried persons as well as for the Businessmen, who get their regular income.
RD in Post office is also suitable for the persons who can not accumulate Lumpsum amount to fulfill their Financial goals of may be either Short term or Long term. The Recurring deposit (RD) scheme is designed for themselves only.
In this scheme, if you have to deposit a fixed single amount of either Rs.1,000/- Rs.2,000, Rs.5,000, or any other amount every month, then, you will earn Interest along with the deposited amount at the RD maturity time.
2. Minimum & Maximum deposit
Is there any Minimum amount to be deposited in Post Office RD?
Recurring deposit in Post Office
Minimum Limit
In the case of RD in Post Office, the Minimum Recurring deposit starts from Rs.100/- per month or any amount more than Rs.100 can be made in multiples of INR 10/- only.
Maximum Limit
What is the Maximum amount one can deposit into Post Office RD?
There is no Maximum limit to deposit in the case of the Post office as well. i.e. No Upper Limit. You can deposit any amount.
| Minimum Deposit Limit | Starts from Rs.100/- per Month |
| Maximum Deposit Limit | No Limit |
Account can be opened in the form of Cash / Cheque
3. What is the Time Limit for Post Office RD ?
Under RD in Post Office, your monthly Post office recurring deposit should be deposited on or before 15th day of the Month if your RD account is opened before 15th of the Calendar month.
In case your post office recurring deposit is opened after 16th day but before last working day of the month, your subsequent deposits should be made on or before last working day of the month.
| S.No. | RD Account Opened Period | Time Limit for Monthly Deposits |
| 1. | From 1st to 15th of the Month | on or before 15th day of the Month |
| 2. | From 16th to 31st of the Month | on or before 31st day of the Month |
Also Read: Recurring Deposit | Top 10 Things you must Know
4. If the Payment is Delayed ?
If the depositor does not pay Subsequent instalment by the end of that month, then, the Recurring deposit account won’t be get closed but the depositor will be liable to pay Rs.1/- for every Rs.100/- denomination amount as a default fees for each defaulted month.
In case the depositor failed to pay 4 regular instalments, then, the account gets discontinued. However, the account holder can revive his account within 2 months from 4th default.
If the account holder fails to deposit money within extended 2 months period, then no further deposits can be made in such account and the account will be discontinued.
5. I have money, Can i make Advance Deposit?
Yes. If you have enough money and if you want to make any advance payment, you can make advance deposit upto 5 years either at the time of opening the account or thereafter.
For the advance payments, Post office provides you with a Rebate Facility.
Case 1
If you deposit for atleast for 6 month instalments, then for every Rs.100 of denomination, you will be eligible for Rs.10/- rebate. i.e. 10% of your deposit
If your 6 months instalment is Rs.12,000/-, then you would be eligible for Rs.120/- rebate and you can deposit an amount of Rs.11.880/- only
Case 2
If you deposit for atleast for 12 month instalments, then for every Rs.100 of denomination, you will be eligible for Rs.40/- rebate.
6. Interest on Post office RD
Post Office RD Interest rate
How much interest on Post office RD I can expect ?
The rate of interest one can earn through recurring deposits will be decided from time to time. From 01.04.2023, Post Office RD Interest rate is 6.70% per annum (Quarterly compounded)
This recurring deposit creates a habit of financial discipline. And also you can have a Nomination facility for yourself.
| Rate of Interest (ROI) | Type of Interest |
| 6.70 % per annum | Quarterly Compounded |
Also Read: Earn upto 8.50% on Fixed Deposits [2024]
7. Who are Eligible ?
> An Individual or
> Joint individuals or a
> Guardian on behalf of Minor or a person of unsound mind and
> a Minor aged 10 completed years can open Recurring deposit on his /her name.
8. Premature Withdrawal
If you withdraw money prematurely it means you have disturbed your financial goal. It is not all advisable. But if the need arises, you can make a premature withdrawal only after 3 years from the date of account opening.
Once you withdraw money the Post office will give you Post office Saving account interest rate on your RD if you withdraw 1 day before maturity.
But there is a chance of losing some money due to penalty and it will also change as per the different bank practices by the different banks. So, better don’t think of pre-mature withdrawal of Recurring deposits as it disturbs your financial goal.
9. Other Benefits
1. The Maturity period of RD in Post office is 5 years i.e. 60 months from the account opening date.
2. You have the facility to extend this period for furthur 5 years. For that, you need to submit an application at the concerned pot office.
3. You can also avail Loan facility upto 50% of your recurring deposit account balance after completion of successful 12 instalments completion
10. To whom Post Office RD is Useful ?
1. Through this, you can invest a fixed amount every month for your small or big financial goals.
2. This scheme is for those who cannot save Lumpsum amount at once.
3. By doing this, there will be a chance to reach a financial goal. Let’s put one lakh rupees at once. It may not be possible for everyone. A recurring deposit is such a useful method for such people.
Thanks for your time 🙂
