INSUBCONTINENT EXCLUSIVE:
Fixed deposits (FDs) offer income tax benefits while recurring deposits (RDs) do not.
Post offices across the country offer nine saving schemes, which also include fixed deposits (FDs)
and recurring deposits (RDs)
Both FDs and RDs offer attractive interest rates
The major difference, however, between the two is that fixed deposits require people to deposit money in one go while recurring deposits
enable people to build on savings via monthly deposits
Income tax benefits on FDs are provided under Section 80C of the Income Tax (IT) Act while RDs do not offer income tax benefits
minimum of Rs 10 per month or any amount in multiples of Rs 5 to open a post office recurring deposit account, stated India Post on its
There is no maximum limit on the amount
It can be opened by cash/ cheque and can be transferred from one post office to another
A nomination facility is available at the time of opening and after opening of the account
A joint RD account can be opened by two adults.The subsequent deposit can be made up to 15th day of next month if the account is opened up
to 15th of a calendar month and up to the last working day of next month if the account is opened between 16th day and the last working day
If the subsequent deposit is not made up to the prescribed day, a default fee is charged for each default, default fee Rs @ 0.05 for every 5
After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within this
period, no further deposit can be made.There is rebate on advance deposit of at least six installments
A single recurring deposit account can be converted into joint and vice versa
One withdrawal up to 50 per cent of the balance from the account is allowed after one year.Interest rates offered on post office recurring
deposits (RDs)Post offices offer an interest rate of 6.9 per cent (quarterly compounded)
On maturity, a Rs 10 account fetches Rs 717.43
The RD account can be continued for another five years on a year-to-year basis.Post office fixed depositsPost office time deposits, also
known as fixed deposit accounts, require a minimum of Rs 200 at the time of opening
There is no maximum limit on the amount that can be kept in an FD account
Post office FD accounts can be opened by an individual or be operated as a joint account
five years fixed deposit account qualifies for the benefit of Section 80C of the IT Act.Interest rates on post office fixed
saving schemes offered by post offices are: savings account, monthly income scheme account (MIS), senior citizen savings scheme (SCSS),
15-year public provident fund account (PPF), national savings certificates (NSC), kisan vikas patra (KVP), and sukanya samriddhi accounts.
