The post office RD account comes with a maturity period of five years.India Post - which operates a network of more than 1.5 lakh post offices across the country- provides a variety of banking services.The Department of Posts offers several savings schemes with different interest rates.
Interest rates on post office saving schemes move in line with the government's interest rates on small savings schemes, which are revised on a quarterly basis.
One such savings scheme offered by India Post is recurring deposit or RD account.
The recurring deposit account offers an interest rate of 7.2 per cent per annum, compounded quarterly, according to India Post's website-indiapost.gov.in.How to openA post office recurring deposit (RD) account can be opened by cash as well as cheque.
In case of cheque, the date of deposit is the date of presentation of cheque, according to the India Post website.
Account can also be opened in the name of a minor.Investment limitsPost office recurring deposit (RD) can be opened with a minimum of Rs10 per month or any amount in multiples of Rs5.There is no maximum limit on investment in post office recurring deposit (RD).MaturityThe post office RD account comes with a maturity period of five years, and can be continued for another five years on year to year basis, according to the India Post website.Premature withdrawalOne withdrawal up to 50 per cent of the balance is allowed after one year.
However, it should be repaid in lump-sum along with interest at the prescribed rate at any time during the currency of the account.Late payment chargesThe monthly deposits should be credited on any day of the month.
Non-payment of a monthly instalment leads to a default.
A default fee of five paise is charged for every five rupees.
If in any RD account, there is monthly default amount, the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit, according to the India Post website.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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