The Recurring Deposit Scheme provides an Interest Rate of 7.30% per annum. This interest on the deposit will get compounded quarterly.
Indian Post has now introduced the India Post Payments Bank (IPPB), which will help you to make the monthly deposit payments of Recurring Deposit account online. The customer needs to visit the post office once for opening the Recurring Deposit account, and after that, the customer can manage his Recurring Deposit account using the IPPB app on their mobile. The following are the steps for making the monthly deposit payments in the post office RD account through IPPB:
There are chances that the customer is in urgent need of money. Although it is not at all advised to close the Recurring Deposit account before its maturity, there are provisions for withdrawing the deposit amount before the maturity of the Recurring Deposit account.
The following are some of the points related to the provisions of withdrawing the deposit amount before the maturity of the Recurring Deposit account.
At present, customers can open the Post Office Recurring Deposit account, and they need to make sure that their deposits are active for a minimum period of 5 years.
Customers who opt to continue with their Recurring Deposit account even after five years have ended can further extend their Recurring Deposit account for another five years. Thus, the entire tenure, in such a case, will be ten years. Also, one of the other good things is that the interest that is earned during the five years tenure will still be compounded quarterly.
The Post Office Recurring Deposit account gives a chance to the customers to save for their future. The minimum amount of deposit to be made in the Post Office Recurring Deposit account is meagre.
The minimum amount of deposit that a customer can make every month is Rs.10/-. Also, there is no maximum amount of deposit that a customer has to make every month. Also, the customer can increase their deposit amount in multiples of Rs.5.
The customer who opens a Post Office Recurring Deposit account will have to make 60 deposits in five years. i.e., each month for five years he will have to deposit the amount. . The first deposit is to be made while opening the Recurring Deposit account with the post office. The deposits to be made after that will depend on the day when the Recurring Deposit account was opened.
Any customer, who opens the Recurring Deposit account from the 1st to 15th of the month, will have to make all the other deposits on the 15th of the next month. Also, the customer who opens the Recurring Deposit account between the 15th and the last day of the month will have to make all the other deposits on the last day of the next month. The customer can pay these deposits to the Recurring Deposit account through a Demand Draft, a Pay Order, or a Cheque.
Many times, it's possible that the customer is not able to make the monthly deposit payment in the Recurring Deposit account. If the customer fails to pay four such consecutive deposit payments, the Recurring Deposit account will have to be ceased. Such ceased accounts can only be reused within two months after the customer fails to make the deposit payment to its Recurring Deposit account for the 5th time.
The customer will be entitled to pay five paise for every Rs.5/- which were to be deposited in an account as a default penalty. So, if the customer wants that his Recurring Deposit account can be reused, then he will have to pay this penalty along with all such deposits that he has failed to pay.
The Post Office Recurring Deposit offers a rebate in case if the customers make an advance payment of the deposits. These rebates are not much; however, it can help such a customer who has fewer resources to save a decent amount of money for some other purpose.
The customer can get a rebate of Rs. 1/- for every Rs.10/- deposited, when he makes a minimum of 5 advance deposits or maximum of 11 advance deposits for his Recurring Deposit Account. In the event of the customer making advance deposits which are more than 11, he can get a rebate of Rs. 4/- for every Rs. 10/- for the 12 advance deposits and Rs. 1/- for every Rs. 10/- for the advance deposits which are beyond 12.
Thus, this five year Post Office Recurring Deposit scheme introduced by the Indian Post is undoubtedly going to very popular amidst all types of investors because it can inculcate a habit of saving money every month and also, as it provides a good interest on the deposits made. So, the investors who are looking for a safe and high rate of return on the investments made by them should surely look for the five year Post Office Recurring Deposit scheme.
Yes, but there are certain considerations to be fulfilled:
The current rate of interest on post office RD is 7.3.% p.a.
Complete guide covering all the basic tax related terms.So, that tax terms will not work as a road-stopper in your way!!
Comprehensive Guide containing all Information that you must know while filing of your ITR for FY 2018-19 (AY 2019-20).
Free Income Tax Calculator for Assessment Year (AY) 2018-2019 and AY 2017-2018 with new budget changes.
Calculate HRA exemption based on your salary for AY 2018-19. Make accurate calculations of HRA for employees.
Hire smartest eCA's toFile Your Income Tax Return. CA Assisted Filing of ITR. File your Income Tax Return with confidence and ease.
Tax2win is an efiling portal to prepare and efile income tax return Online. Tax2win helps individuals to file their income tax return.