For investors looking for a savings option with predictable returns and relatively low risk, the Post Office Recurring Deposit (RD) scheme can be considered for medium-term savings. The scheme allows investors to deposit money every month, starting from just ₹100.
Under the rules, deposits can be made in multiples of ₹10, and there is no maximum limit on the amount that can be deposited. The Post Office RD account can also be opened individually or jointly, depending on the investor’s requirements.
Who Can Open a Post Office RD Account?
An individual can open an RD account in their own name. A joint account can also be opened by up to three adults.
Joint RD accounts are available in two forms. Under a Joint A account, all account holders operate the account together, while the survivor or survivors can operate it in case of the death of one of the account holders. A Joint B account, on the other hand, can be operated individually by the account holders, with the same survivor facility.
The scheme also provides an option for minors. A guardian can open an account on behalf of a minor, while a minor aged 10 years or above can open an account in their own name. Accounts can also be opened by parents or guardians for a person who is not mentally sound, referred to under the rules as an authorised account.
What Is the Post Office RD Tenure?
The standard tenure of a Post Office RD account is five years, equivalent to 60 monthly instalments. After completing the five-year period, the account can be extended for another five years by submitting an application at the post office.
The account can also remain active for up to five years after maturity without making additional deposits. During this period, no further monthly instalments are required while the account continues under the applicable rules.
₹8,000 Monthly Investment: How Much Will You Get?
Suppose an investor deposits ₹8,000 every month into a Post Office RD account for five years. Over 60 months, the total amount deposited would be ₹4.80 lakh.
At an interest rate of 6.7%, the interest earned over the five-year period would be ₹90,926.63, according to the calculation provided.
This would take the total maturity amount to ₹5,70,926.63, including the original investment and the interest earned.
Disclaimer
This article is for general informational purposes and is based on the details provided in the source material. Interest rates, Post Office scheme rules and maturity calculations may change according to government notifications and applicable rules. Investors should verify the latest terms, rates and applicable conditions with India Post before making any investment decision.