Post Office Recurring Deposit: Invest Rs.100 and Get Rs.5 Lakh

Post Office Scheme, Post Office Recurring Deposit, Apply Offline, Post Office RD: Like we all know the fact that everyone wants to do some savings for their future. Savings in Post Office is one of them to save our investments. The saving yojana has a very trustworthy investment scheme for all the common man or citizen. Savings in the form of school fees for their children, small fundings or businesses like buy two-wheeler, or any other post-office related schemes. It always helps the general people of our country for a particular time. It has many advantages, such as housewives can also get this opportunity to save small savings schemes. You can call it a small middle-class person saving scheme having various benefits. Here in this article, we will discuss everything related to the Post Office Recurring Deposit Scheme, etc. Interested applicants should read this article very carefully.

Post Office RD

Topic Name Post Office Recurring Deposit: Invest Rs.100 and Get Rs.5 Lakh
Article Category Post Office Recurring Deposit
Post Office RD Account Opening
Post Office Recurring Deposit or Bank RD
Frequently Asked Questions
Scheme Category Post Office
Official Website Click Here

Post Office Recurring Deposit

It has to be understandable from every citizen that investment cannot be made overnight. Every single person has to start to grow and invest capital that returns good investment. They have to start to understand it properly. Everyone has to promote their investment and start to follow all rules to grow the best capital. Out of all investment tools, RD and the recurring deposit has become a good option to start investing.

Let’s tell you all that the Indian Post Office has to provide many different savings yojana or schemes from which the RD process is one of the most used schemes. PO RD Scheme is a type of government back up that provide assurance returns. It has medium time, and citizens should start saving their amount from low Rs.100/- per month for five years. Now, the tenure should increase for five years are increased. The starting deposit for an opening account of the RD Post office should be made either by cash or cheque. I depend on you. Likewise primary advantages, this scheme has given some of the unique benefits which have not present with Bank RD. It includes the transferring facility from where every one of you can easily transfer and change your Post office as well as change your RD account anytime without having any trouble.   

PO RD Scheme

Whenever you start opening your joint RD account and want to pay money as monthly installments, then you can start to do so as two adults. Post Office has given this scheme only if two adults jointly open an RD account. Moreover, every small child whose age is of ten years and above would apply for this Post Office RD account. They will have to manage it all on my own. Every small child’s Parent or Guardian should also apply for this scheme in place of their child whose age is less than ten years. So, minors can convert their RD account into adult RD after maturity or withdraw the amount.

All adults may also be able to open a joint bank account with the facility of nomination. For this, everyone has to deposit money in advance as a rebate and pay six advance installments. It is an interesting post office feature that converts your minor account into an RD account. For some reason, if the depositor dies, then the amount of maturity will be given to the nominee with the Rs.50/- of denominations.

Post Office RD Account Opening

Everyone wants to know the procedure of account opening in the Post office to save some amount of money for their future. So, here we will discuss only those points to open an account in Post Office. The steps are as follows:

  • For this, go to the post office which is near your home.
  • Take the RD application form from there. Fill this form correctly.
  • After proper filling, submit this form with payment in a slip of starting to save money.
  • Let’s tell you all that the account opening form will be different for all senior citizens.

Rate of Interest

It has to be informed you all that Opening an account in the post office with a minimum balance is of Rs.10 and has no maximum limit. The rate of interest will be given at 7.1%. This interest amount will be compounded quarterly. It is different advantage for all people who submit a large amount of money as it provides a good investment.

Withdrawal Deposit

Every depositor is permitted to withdraw the current balance up to 50% of their RD account after one year. While in the case of children’s applicant has to change their account into RD accounts. It has only possible after the maturity period of the account.

Post Office Recurring Deposit or Bank RD

Here we will discuss the difference between Recurring Deposit or Bank FD. According to the all experts recurring Deposit in Post Office is the best method to save money or make an investment other than the Bank FD process. It will always help to cover all future needs things. Only a small amount of investment has taken place every month, which will become a large investment and make compound interest. All investors need to know the exact difference between the Post Office Recurring Deposit and Bank FD. 

According to the government rules & regulations, all banks are permitted to reduce the TDS on every interest. On the other hand, the Post office does not reduce any TDS on interest. Bank will reduce TDS, only if the total annual will more than Rs.10,000. This will get applied to the full interest amount. The savings from interest through post office RD has taxable below the Income Tax Act, and it will further add on below the head of ‘Income through other sources’ every year.

Recurring Deposit

As we compare the RD account tenure provided by the various banks are always given by the post office. Bank RD tenure is very flexible as it is started from the low such as six months and reaches up to ten years. It is not that compulsory to keep an RD account for six months or two years. On the other side, RD in the post office has started for around a minimum time of five years, and it can be increasing to five years. So, it means that RD account in post offices are better and good for every citizen who is looking for a long-term advantage. On the other side, banks RD are good for those who are looking for short-term advantages like saving money to buy a car, jewelry, or for a holiday. 

Moreover, the bank will always take a review from their rate of interest every year according to the market dynamics economics. But post office provides a fixed interest rate according to the date of account opening. It only refers that the amount of maturity was not changing and citizens can get the guaranteed money during the end of the tenure. So, by having soaring interest rates, bank FD will also provide good returns because the rate of interest should rise by giving convenience to high returns.

Recurring Deposit Payment Default

If unconditionally, there would be any default in a Post office RD account, then there would be a penalty of Rs.5/-. If citizens for some reason, cannot pay the payment of the month, or the last payment, then they will be paying a penalty of Rs.5. If there is a default of around four regular intervals, then the insurer account will be closed. But, citizens or applicants will be able to open this bank account between two months of discontinuation. After that, no amount or deposit will permit from that account, and you are not able to deposit the same amount in the same account.

I hope you will understand this article very well and are ready to take advantage of it. Suppose you face any problems related to the Post Office Recurring Deposit Scheme. In that case, you may ask your queries in the given comment box.

Frequently Asked Questions

What will be the minimum amount to invest below Post Office Recurring Deposit?

You can deposit a minimum amount of Rs.100/- for five years.

How much fine to pay while missing any installments?

You have to pay Rs.5/- as a fine.

What is the basic difference between Bank RD and Post Office RD?

The most important difference between these two is Bank RD deducts TDS, while Post office RD does not deduct any TDS amount.

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