Post Office Recurring Deposit Scheme provides the facility of saving small sums of money every month to meet future financial goals and earn relatively higher risk free returns.
The salient features of the scheme are :
Who can open?
Any resident adult individual singly or jointly with one or two other adults.
Minor's accounts can be opened through guardians.
A minor, who has attained 10 years age, can also open the account.
Minimum amount
Monthly Rs. 10/-
Maximum amount
Any amount in multiples of Rs. 5/-
Maturity period
60 months
Interest Rate:
The interest paid varies as declared by the Directorate, Small Savings from time to time.
Transferability
Transferable from one office to another.
Deduction u/s 80C
Not available.
Interest Taxability
Taxable
Other features
The amount of deposit made at the time of opening of the account cannot be varied.
The Recurring Deposit Account matures on the date on which it is opened after the end of the term. In case the date of maturity falls on Sunday or postal holiday, the payment becomes due on the business day immediately preceding the date of maturity.
The holder of an account may prematurely close the account after 3 years of date of opening of the account. Interest at the rate applicable from time to time to Post Office Savings Account shall be payable on such premature closure of account.
Where a Depositor in a single account or a surviving depositor in a joint account dies during the Maturity period of an account, the legal heir of such depositor is paid the amount as if the depositor had paid all the sixty monthly deposits, subject to the conditions that:
The age of the depositor is not less than 18 years and not more than 53 years.
The payment amount is restricted to the maturity value of an account of denomination of Rs. 50/-.
The account has not become a discontinued account.
The period from the date of opening of the account to the date of death of the depositor or surviving depositor, is not less than two years and the first 24 monthly deposits have been made without default.
No withdrawal has been made from the Account during the first 24 months
