Features and Benefits of Post Office Recurring Deposit (RD) Account Scheme

India Post offers a recurring deposit scheme for adult investors and even minors through their guardians, under which they can make monthly or quarterly payments and enjoy a handsome interest amount which is offered on account maturity, i.e. 5 years.

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The following are some of the features and benefits of India Post RD scheme:

• There is no maximum limit on the amount you wish to deposit in your RD account on a monthly basis. You can start with Rs. 10 per month or go as high as you want.
• RD accounts are transferable. Thus, you can transfer your RD account from one post office to another.
• You can withdraw up to 50% of the balance in your RD account after one year of opening the account without attracting any fines or penalties, unlike fixed deposits, in which there is a fine for withdrawing the amount before maturity.
• The interest rate offered on India Post RD accounts is 7.3% at the time of writing.

How to open a post office RD account?

It’s really easy to open a post office RD account. Just follow these steps:

• Go to the nearest post office and obtain the form for opening an RD account. You can also download it here.
• Fill out the form by entering details like your name, address, PAN, etc.
• Submit the duly filled form along with original documents for address proof, ID proof, etc. to the concerned person in the post office.
• That’s it. They will open your account immediately after verification.

RD investments are easy to manage due to small although frequent deposits. They are also better than FD accounts if you want to inculcate a habit of saving money on a regular basis.