Recurring deposit: The installment amount once fixed in SBI and Post Office RD cannot be changed. State Bank of India (SBI) and Post Office both offer RD option to their customers.
Recurring Deposit (RD) is a well-known savings scheme for many people in India. In the RD account, the customer makes the payment in installments and gets the maturity amount on the maturity date. The installment amount once decided cannot be changed. RD account can be opened in bank or post office. State Bank of India (SBI) and Post Office both offer RD option to their customers.
SBI Recurring Deposit (RD)
SBI offers RD interest rates from 5 per cent to 5.4 per cent for general public and 50 basis points for senior citizens. These rates are effective from 8 January 2021. The maturity of SBI RD ranges from 1 year to 10 years. Customers can deposit money in SBI RD account with a minimum of Rs 100 and in multiples of Rs 10 every month. There is no maximum deposit limit.
SBI RD rates effective from January 8, 2021-
- 1 year to less than 2 years – 4.9%
- 2 years to less than 3 years – 5.1%
- 3 years to less than 5 years – 5.3%
- 5 years and up to 10 years – 5.4%
Post Office RD interest rates-
The post office offers an interest rate of 5.8 per cent per annum on recurring deposits. These rates are effective from 1 January 2021. The post office offers RD for a tenure of 5 years only. RD can be opened in the post office with a minimum of Rs 100 and after that the amount can be deposited in multiples of 10. However, there is no maximum investment limit. The interest rate on 5-year Post Office Recurring Deposit (RD) is effective from 1 April 2021.
loan facility
If the account is opened in the first 15 days of the month, then you have to deposit the money by the 15th of the month. At the same time, if the account is opened after the first 15 days of the month, then the money will have to be deposited before the last date of the month.
Loan facility is also available in Post Office RD scheme. This facility of loan is available after depositing 12 installments. Loan can be taken up to 50% of the amount deposited in the account.
RD account can be closed before maturity after three years of account opening. Post Office Savings Account interest will be payable in case the account is closed before maturity.
