INSUBCONTINENT EXCLUSIVE:
India Post - which operates a network of more than 1.5 lakh post offices across the country-
provides a variety of banking services
Among the nine savings schemes that India Post offers, recurring deposit or RD accounts offer an interest rate of 7.2 per cent per annum,
according to India Post's official website - indiapost.gov.in
Interest rates on these post office saving schemes move in line with the government's interest rates on small savings schemes, which are
revised on a quarterly basis
Here are 10 things to know about post office recurring deposit (RD):A recurring deposit is a type of term-deposit
Unlike a fixed deposit account, in which a lump-sum amount is locked in for a defined period against a fixed return, a recurring deposit
account allows the investor to park a fixed amount of funds at regular intervals; for instance, every month.A 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 India Post.Any number of RD accounts can be
opened in a post office.Account can also be opened in the name of minor
A minor of 10 years and above age can open and operate the accountThe maturity period of post office RD account is 5 years
However, it can be continued for another five years on a year-to-year basis.It can be opened with a minimum of Rs 10 per month or any amount
15th day of next month if the account is opened up to 15th of a calendar month, and up to last working day of next month if account is
opened between 16th day and last working day of a calendar month.One withdrawal up to 50 per cent of the balance is allowed after one year
However, it should be repaid in one lump-sum along with interest at the prescribed rate at any time during the currency of the account.The
monthly deposits should be credited on any day of the month
Non-payment of a monthly installment 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 India Post.Get Breaking news, live coverage, and Latest News from India and around the
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