You can also open a 5-year Recurring Deposit (RD) account in the post office. In this you will get better interest than banks. For example, at present, State Bank of India (SBI) is getting an interest of 5.40 percent for a maximum tenure of 5 years to 10 years. Whereas on a 5-year FD in the post office, you will get interest at the rate of 5.8 percent.
Post Office Recurring Deposit (RD) Account: If you are thinking of investing in the coming days, then you can do it in the savings schemes of the post office. You definitely get good returns in these schemes. Also, the money invested in it is also completely safe. If the bank defaults, then you get back only Rs 5 lakh. But this is not the case in the post office. Apart from this, investment in post office savings schemes can be started with a very small amount.
You can also open a 5-year Recurring Deposit (RD) account in the post office. In this you will get better interest than banks. For example, at present, State Bank of India (SBI) is getting an interest of 5.40 percent for a maximum tenure of 5 years to 10 years. Whereas on a 5-year FD in the post office, you will get interest at the rate of 5.8 percent. Let us know about this scheme in detail.
Rate of interest
If you open a 5-year recurring deposit (RD) account in the post office, you will get an interest of 5.8% per annum. Interest will be compounded on quarterly basis.
Investment amount
A minimum investment of Rs 100 per month has to be made in the post office recurring deposit of 5 years. One can invest any amount in multiples of Rs 10. There is no maximum investment limit.
Who can open account?
In this scheme of post office, an adult can open a joint account with up to three adults, a guardian account on behalf of a minor. Apart from this, a guardian on behalf of a person of weak mind or any minor above the age of 10 years can open his account in his own name.
Scheme Features
- The account can be opened with cash or cheque. In case of cheque, the date of deposit should be the date of clearance of the cheque.
- If the account is opened by the 15th of the month, then after that the deposit has to be made by the 15th of the following month.
- If the account is opened between the 16th day to the last working day of the month, then the deposit has to be made till the last working day of the month.
- After depositing 12 installments and maintaining the account for one year, the depositor can avail loan on the amount up to 50% of the balance in the account.
- The loan has to be repaid in lump sum or EMI.
- The interest on the loan will be at the rate of 2 percent plus RD.
- RD account can be closed prematurely after three years from the date of account opening. For this, the application form has to be submitted in the respective post office.
- If the account is closed even one day before maturity, the interest rate of the Post Office Savings Account will be applicable.
