5-Year Post Office Recurring Deposit Account (RD)
Interest rates: 6.7 % per annum (quarterly compounded)
Minimum amount: 100/- per month
Maximum Amount: any amount in multiple of 10/-. No maximum limit.
Account Type: Individual, Joint Account, Guardian on behalf of Minor, Minor above 10 years
Number of Accounts: any number of accounts can be opened
Default: If subsequent deposit is not made up to the prescribed day for a month, a default is charged for each defaulted month, default @ 1 rupee shall be charged for 100 rupee denomination account (proportionate amount for other denomination) shall be charged.
If in any RD account, there is monthly default, the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit.
After 4 regular defaults, the account becomes discontinued and can be revived within two months from 4th default, however, the account is not revived within this period, no further deposit can be made in such account and account became discontinued.
Advance deposit: If an RD account is not discontinued can made advance deposit up to 5 years in an account.
Rebate on advance deposit of at least 6 instalments (inclusive of month of deposit), for Rs. 100 denomination rebate Rs. 10 for 6 month , Rs. 40 for 12 month.
The advance deposit may be made at the time of opening of the account or any time thereafter.
Loan: After 12 instalments deposited and account is continued for 1 year not discontinued. depositor may avail loan facility up to 50% of the balance credit in the account.
Loan can be repaid in one lump-sum or in equal monthly installments.
Interest on loan will be applicable as 2% + RD interest rate applicable to the RD account.
Interest will be calculated from date of withdrawal to date of repayment.
In case loan is not repaid till the maturity, loan plus interest will be deducted from the maturity value of the RD account.
Premature Closure: RD Account can be closed prematurely after 3 years from the date of account opening by submitting prescribed application form at concerned Post Office.
PO Savings Account interest rate will be applicable if the account is closed prematurely even one day before maturity.
No premature closure of account shall be permissible until the period for which the advance deposits have been made.
Maturity: 5 years (60 monthly deposits) from the date of opening.
Extension: Account can be extended for further 5 years by giving application at concerned Post Office. Interest rate applicable during extension will be the interest rate at which account was originally opened.
Top