INSUBCONTINENT EXCLUSIVE:
Post office recurring deposits and monthly income scheme guarantee returns as interest rates are fixed.India Post, which also deals with
banking services, offers to its customers the option of recurring deposit (RD) accounts and monthly income scheme (MIS) accounts
With deposits in either of these schemes, you can not only increase your savings but also grow your wealth as your deposits will fetch an
interest rate up to 7.3 per cent over a maturity period of five years
Both post office recurring deposits and monthly income scheme offer guaranteed returns as they are not liked to stock or bond markets.Given
deposit (RD) accounts:Like a usual bank recurring deposit, post office recurring deposit also needs you to make payments at regular
You need to deposit a minimum Rs 10 per month or any amount in multiples of Rs 5, according to the website of India Post - indiapost.gov.in
There is no maximum limit on the recurring deposit instalment
The tenure of a post office RD is for five years.Post office recurring deposit account can be opened via cash or cheque
It can be transferred from one post office to another
Subsequent deposits 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 it is opened between 16th day and last working day of a calendar month.If subsequent deposit is not made up to
the prescribed day, a default fee at Rs 0.05 for every Rs 5 will be charged
After four regular defaults, the account is discontinued and can be revived in two months but if the same is not revived within this period,
no further deposit can be made
the default fee and then pay the current month deposit.A rebate is offered on advance deposit of at least six installments in post office
recurring deposit account
One withdrawal up to 50 per cent of the balance is allowed after one year
It may be repaid in one lump sum along with interest at the prescribed rate at any time during the currency of the account.Interest rate on
post office recurring deposit (RD) accounts:Post office recurring deposit (RD) accounts offer a quarterly-compounded interest rate of 6.9
A Rs 10 recurring deposit account - in which the subscriber contributes Rs 10 every month to the account - fetches Rs 717.43 on maturity
The account can be continued for another five years on a year-to-year basis.Post office monthly income scheme account (MIS)The minimum
amount required for opening a post office monthly income scheme account should be in multiples of Rs 1,500
It can be increased thereafter
The maximum investment limit is Rs 4.5 lakh in single account and Rs 9 lakh in joint account
An individual can invest maximum Rs 4.5 lakh in MIS (including his share in joint accounts)
For calculation of share of an individual in joint account, each joint holder should have equal share in each joint account, according to
the India Post website.The maturity period of an MIS is five years
Interest can be drawn through auto credit into savings account standing at the same post office.Post office monthly income scheme account
can be prematurely en-cashed after one year
But if you encash it before three years, the post office deducts 2 per cent of the deposit
If you encash it after 3 years, 1 per cent of your deposit is deducted.Interest rate on post office monthly income scheme account
(MIS)Deposits in post office monthly income scheme account fetch an interest rate of 7.3 per cent per annum payable monthly.
