About 5 Year Post Office Recurring Deposit Account (RD)
Central government revises Small Savings Scheme interest rates on a quarterly basis. Currently, recurring deposit scheme offers 6.7% interest rate w.e.f 1 July 2024. The interest rate offered under RD account is quarterly compounded.
Who can open National Savings Recurring Deposit Account (RD)
- a single adult
- Joint Account (up to 3 adults) (Joint A or Joint B)
- a guardian on behalf of minor
- a guardian on behalf of person of unsound mind
- a minor above 10 years in his own name.
Deposit in PO 5-Year Recurring Deposit Account (RD)
- Account can be opened by cash/cheque and in case of cheque the date of deposit shall be date of clearance of cheque.
- Minimum Amount for monthly deposit is Rs. 100 and above minimum in multiple of Rs. 10.
- Subsequent deposit shall be made up to 15th day of month, if account is opened up to 15th of a calendar month.
- Subsequent deposit shall be made up to last working day of month, if account is opened between 16th day and last working day of a calendar month.
Post Office Recurring Deposit (RD) Interest Rate
- From 01.07.2024, interest rates under National Savings Recurring Deposit Account is 6.7% per annum (quarterly compounded).
Default in National Savings RD Account
- 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 but if the account is not revived within this period, no further deposit can be made in such account and account became discontinued.
- If there are not more than four defaults in monthly deposits, the account holder may, at his option, extend the maturity period of the account by as many months as the number of defaults and deposit the defaulted installments during the extended period.
Advance Deposit in 5 Year Post Office RD Account
- 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 installments (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 under Recurring Deposit Scheme
- After 12 installments 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.
National Savings Recurring Deposit (RD) Account Opening Form PDF
If you want to open Recurring Deposit account, then you can follow process here.
- First of all, go to official website indiapost.gov.in
- Once you open homepage, click "Post Office Savings Bank" tab.
- Then page showing Post office savings schemes will open.
- Click at "National Savings Recurring Deposit Account (RD)" link.
- Link containing RD scheme description as well as to open form for RD account will open.
- Click "Forms available" link or https://www.indiapost.gov.in/VAS/Pages/Form.aspx#SavingBank
- Click at "Application Form for Opening of Account" link.
- Then National Savings Recurring Deposit (RD) application form PDF will open on your screen.
- You can download this RD form, take a printout, fill it manually and submit it at nearest post office branch to open your recurring deposit account.
Premature Closure for PO Recurring Deposit Scheme Account
- 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.
Account Closure on Maturity of RD Account
- 5 years (60 monthly deposits) from the date of opening.
- 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.
- Extended account can be closed any time during the period of extension. For completed years, RD interest rate will be applicable and for period less than a year, PO Savings Account interest rate will be applicable.
- RD account can be retained up to 5 years from the date of maturity without deposit also.
Application Form for Closure of Account on Maturity - https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/Closure.pdf
Extension of RD Account
- Account holder may extend the recurring deposit account from the date of maturity by submitting prescribed form with passbook at concerned post office.
- Extended account shall earn interest at the rate applicable on the date of maturity.
Application Form for Extension of RD Account - https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/ExtensionRD.pdf
Repayment on Death of RD Account Holder
- On the death of account holder nominee/claimant can submit claim at concerned Post Office to get the eligible balance of such RD account.
- After sanction of claim, Nominee/legal heirs can continue RD account till maturity by submitting application at the concerned Post Office.
Minimum Amount to Open RD Account
As per the official Indian Post website, the minimum amount to open an RD account in Post office is Rs. 100. Then people shall make any deposit in RD account in multiple of Rs. 10.Maximum Balance that can be Retained in RD Account
The maximum balance which can be retained in RD account has no limit.
If you want to get more details regarding RD account, go to official website indiapost.gov.in
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