Recurring Deposit Plan

India Post offers it’s customers the facility of a 5-Year Recurring Deposit (RD) Account which is essentially a deposit scheme allowing customers to add to their savings by investing money which earns interest over a fixed period of time. An RD is usually opened for a fixed period of time and deposits must be made at predetermined intervals which may be monthly, quarterly, depending on the terms and conditions of the deposit scheme. Unlike a fixed deposit, an RD is not a one-time investment and may be closed before its maturity date. The India Post Recurring Deposit Account is an ideal investment option for first time investors or young professionals as it does not require customers to invest large sums of money towards installments but does earn you handsome interest at the end of the maturity period.

Features of India Post Recurring Deposit

·         Customers can open an RD Account with a minimum of Rs 10/- per month or any amount in multiples of Rs 5/-. There is no maximum limit on the amount one may wish to invest each month.

·         You can open an RD Account by paying in cash or by cheque. In case payment is made by cheque, the date of presentation of the cheque will be considered as the date of deposit.

·         Customers can avail the Nomination facility not only at the time of opening the account but also afterwards.

·        You can transfer your Recurring Deposit Account from one post office to another.

·        Customers are free to open any number of RD Accounts in any Post Office of their choice.

·        Customers making an advance deposit for at least 6 months are entitled to a rebate.

·        Customers have the option of converting a Single account to a Joint account and vice versa.

·        If the RD Account has been opened by the 15th of a month, then the subsequent deposit to the same can be made up to the 15th of the month. If the account has been opened after the 16th of the month, up to the last day of the month, then the subsequent deposit can also be made up to the last working day of the month.

·        After attaining majority, a minor must apply for converting the RD account in their name.

·        Customers are allowed one withdrawal of up to 50% of the account balance after one year of opening the account.

·        Any delay in deposits will attract a default fee at the rate of 5 paise for every Rs 5 of the deposit amount. If a customer defaults on deposit payments for 4 consecutive times, the account shall be discontinued and can be revived in a period of 2 months. However, if the account is not revived, then no further deposit can be made.

Eligibility

·         Recurring Deposit Accounts can be opened by individuals as single or as joint accounts.

·         An RD Account can be opened in the name of a minor. Minor individuals aged 10 years and above can open and operate their RD accounts.