Whenever it comes to investment, even today people in the village are depositing their money in different schemes of the post office in large numbers. Post Office RD is still very popular among the people. Let us understand how beneficial investing money in RD is for you.
Post Office RD is a government backed scheme. Due to which your money remains completely secure here. Post offices offer RD 5.8% annual interest, compounding quarterly. Also, if we do not pay any installment on time, then we will also have to pay a penalty.
RD starting from Rs.100
Any Indian citizen can start an RD by paying a monthly installment of just Rs 100. While giving us the next installment, it should be kept in mind that if you have opened the account in the first 15 days of the month, then the installment will also have to be deposited in the first 15 days, whereas if you have opened the account in the last 15 days of the month then the installment will be last. Must be deposited within 15 days.
Penalty will be imposed for not paying installment on time
In any case, if you are not able to pay the installment of RD on time, then you will have to pay a penalty. For every installment of Rs 100, a penalty of Re 1 will have to be paid. If you do not make the payment on time, your account will be closed. Also you can take loan on RD.
You can also close the RD account at a premature stage after three years. But in such a situation, only the interest you get on the savings account will be credited.
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