Investing in right sources or medium that can offer you a huge capital in return is something that all of us want. You can make huge money for your future by depositing just Rs. 100 every month. Hence, we are here to tell you about the right medium to invest your savings. The name of this scheme is Post Office Recurring Deposit.
What is Post Office Recurring Deposit
Overall, investment can be started with very little money through this scheme with better return.
Moreover, your money will also be safe. The post office RD deposit account is a small installment deposit government guaranteed scheme with good interest rate.
How Much Interest will be Given?
RD account is opened for five years in the post office. For nothing less than this. There is an interest calculus on the deposited money every quarter (at the annual rate) and it is added to your account (including compound interest) at the end of every quarter. Facebook Twitter.
According to India Post's website, 5.8 percent interest is currently being received on RD scheme. This new rate is applicable from 1 July 2020. The Government of India announces the interest rate of all its small saving schemes every quarter.
Who is Eligible for Post Office RD Account?
A person can open as many RD accounts in his name. There is also no restriction on the maximum number. Yes, keep in mind that accounts can only be opened in person, not in the name of family (HUF) or institution. Two people can also open a joint RD account together. An already opened personal RD account can be converted into a joint account at any time. In contrast, the already open joint RD account can also be converted into a personal RD account at any time.
Maximum & Minimum Limit of Post Office RD Account
In this RD scheme, you can invest a minimum of 100 rupees a month. You can deposit any amount in multiple of 10 more than this. There is no limit on the maximum deposit amount. Any amount in ten multiples can be deposited in RD account.
Important Things related to Post Office RD Account
If you do not deposit the RD installment by the due date, then with the late installment you will have to pay a penalty of one percent every month separately. Also, if four consecutive installments were not deposited, the account will be closed. However, even after the closure of the account, it can be activated again for the next two months.
