Recurring Depositopening a Recurring Deposit Account in post office is a very good idea.
Although one can easily open a Recurring Deposit Account in bank these days. In fact these facilities are available 100% online, without visiting any branches. But in case of post office, one have to visit to nearest post office and ask for opening an account.
Key Highlights of Post Office Recurring Deposit Account
You can open post office RD account by paying in cash or though cheque deposit also. Your cheque date should be the date when you are submitting the recurring deposit opening application.
You can provide nominee at the time of opening the account or even after opening the account.
You can transfer your RD account from one post office to another post office.
You can open any number of RD as per your investment plan.
Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
Joint account can be opened by two adults.
You can get rebate on advance deposit of at least 6 installments.
Single account can be converted into Joint and Vice Versa.
Minor after attaining majority has to apply for conversion of the account in his name.
Partial withdrawal of 50% of accumulated balance is allowed only after completion of 1 year of the RD account.
Eligibility & Interest Rates of Recurring Deposit Account in Post Office
From 1.10.2016, interest rates are as follows:-
7.3% per annum (quarterly compounded)
On maturity INR 10/- account fetches INR 725.05. Can be continued for another 5 years on year to year basis.
| Type of Account | Minimum Deposit | Maximum Deposit |
|---|---|---|
| Individual Account | INR 10/- per month or any amount in multiples of INR 5/- | No limit. |
If subsequent deposit is not made up to the prescribed day, a default fee is charged for each default, default fee @ 5 paisa for every 5 rupee shall be charged. After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within this period, no further deposit can be made.
How to Open Recurring Deposit in Post Office
One can’t open Recurring deposit account online in post office, which I feel is a disadvantage for people who are mostly relying on digital translations. For people who don’t have banks nearby, I think post office RDs are good investment options.
To open a RD account in post office, one have to fill up the recurring deposit application form. You can also download the same from post office website.
Also fill up Pay-in slip and specimen signature slip.
Provide necessary documents like filled up KYC form, PAN card, Address proof, Identity proof, passport size photo etc.
After that visit your nearest post office and then provide the amount and open in your RD account.
In case you open the account from 1st to 15th of the month, you need to pay the recurring money every month before 15th only. If you pay the money after 15th, then subsequent deposits can be made up to the end of the month.
After opening the account you will be provided with a passbook where every deposit will be recorded by the executive in the post office whenever you make a deposit.
Is Post Office Recurring Deposit A Good Investment Option?
Yes, without any doubt RD account is such a basic and popular account, that I am sure everyone at least learn to start investing money through RD account. It is always advised to start recurring deposit account to start investing money regularly. One can easily build an investment habit by starting a RD account. But again the question is with the features & flexibility provided by post office compared to bank RD accounts. If you are looking to open an online RD account then you may not able to do it in post office, rather starting a RD account in bank online is just few clicks away. So, you have to decide where you want to open this account to save money for short term.
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