Do you want to grow your savings in a safe way? Are you looking for an investment plan that allows you to deposit small amounts regularly and also gives good returns? Then Post Office Recurring Deposit (RD) scheme can be the perfect option for you.
Post Office RD Scheme is a popular investment option that gives small investors an opportunity to make regular savings and grow their money in a safe manner. This scheme is run by the Government of India, so it is completely safe to invest in it. Let us know in detail about Post Office RD Scheme 2024 in this article.
What is Post Office Recurring Deposit (RD) Scheme?
Post Office Recurring Deposit (RD) is a fixed deposit type scheme in which you deposit a fixed amount every month. This scheme is very useful for those who have regular income and want to increase their savings gradually. The tenure of this scheme is 5 years and the interest received on it is compounded on quarterly basis.
Key Features of Post Office RD Scheme 2024
| Description | Information |
| minimum deposit amount | ₹100 per month |
| maximum deposit amount | no limit |
| interest rate | 6.7% per annum (quarterly compounding) |
| Duration | 5 years |
| Account opening eligibility | any Indian citizen |
| premature withdrawal | Permission after 3 years |
| tax benefit | Deduction under section 80C |
| enrollment facility | Available |
How to invest in Post Office RD Scheme?
It is very easy to invest in Post Office RD Scheme. You can open your RD account by following these simple steps:
- Go to your nearest post office.
- Fill the application form to open RD account.
- Submit your identity proof and address proof.
- Deposit a minimum amount of ₹100 or more.
- Get your passbook.
Benefits of Post Office RD Scheme
Safe Investment: This scheme is run by the Government of India, so your money remains completely safe.
Habit of regular savings: Depositing a fixed amount every month gets you into the habit of saving regularly.
Attractive Interest Rate: Currently the interest rate of 6.7% is quite attractive compared to banks.
Flexible Deposit Amount: You can deposit any amount starting from ₹100 as per your convenience.
Tax Benefit: Under Section 80C, you can avail tax deduction on your investments.
Calculation of interest in Post Office RD Scheme
In Post Office RD Scheme, interest is calculated on quarterly basis. That means, after every three months, you get interest on your original investment and also on the previous interest. This makes your money grow faster.
For example, if you deposit ₹1,000 every month, after 5 years you will get interest of approximately ₹69,920 and your total amount will be ₹1,29,920.
Advance Deposit facility in Post Office RD Scheme
You can also avail the facility of advance deposit in Post Office RD Scheme. Under this, you can deposit installments of 6 months or 12 months together. You also get rebate on this:
- Rebate of ₹10 per ₹100 on 6 months advance deposit
- Rebate of ₹40 per ₹100 on 12 months advance deposit
Loan facility in Post Office RD Scheme
If you need money at any time, you can also take a loan from your RD account. There are some conditions for this:
- Account must be at least 1 year old
- At least 12 installments have been deposited
- Maximum loan amount up to 50% of the deposit amount
Premature Withdrawal in Post Office RD Scheme
If for some reason you want to close your RD account prematurely, this is also possible. However there are some rules for this:
- Account cannot be closed before 3 years
- On closing the account after 3 years, interest will be given at the rate of savings account.
- If account is closed before completion of 5 years, 2% less interest will be given.
Post Office RD Scheme vs Bank RD Scheme
There are some differences between post office RD scheme and bank RD scheme. Let’s compare them:
| Description | Post Office RD | Bank RD |
| interest rate | 6.7% (more) | 4.5% – 7% (low) |
| Security | guaranteed by government | Insured by DICGC |
| minimum deposit | ₹100 | ₹100 – ₹1000 |
| maximum deposit | no limit | according to the bank |
| Duration | 5 years (fixed) | flexible |
| online facility | Limited | Comprehensive |
KYC Documents for Post Office RD Scheme
To open a post office RD account, you need to submit the following KYC documents:
- Identity Proof (Aadhar Card, PAN Card, Passport etc.)
- Address Proof (Aadhar Card, Electricity Bill, Ration Card etc.)
- Recent passport size photo
Enrollment in Post Office RD Scheme
It is very important to enroll your RD account. This makes it easy for your nominee to get the money in your absence. to enroll:
- Fill the enrollment form at the time of account opening or later
- Provide name, address and relationship of the nominated person
- You can also make more than one nomination
Tax provisions in post office RD scheme
You get tax benefits on investing in Post Office RD Scheme:
- Deduction up to ₹1.5 lakh under section 80C
- Interest received on maturity is taxable
- TDS is deducted on interest above ₹40,000 (₹50,000 for senior citizens)
Online management of post office RD scheme
Now you can manage your Post Office RD account online also:
- Register on India Post website
- Link your RD account
- check balance online
- Download e-Statement
- Set installment payment reminder
Calculator for Post Office RD Scheme
You can use online RD calculator to calculate your RD investment. With this you can easily find out how much your investment will grow. Simply enter your monthly deposit amount, tenure and interest rate, and the calculator will tell you the maturity amount.
Post Office RD Scheme: FAQs
Q1: Can I open more than one RD account?
A: Yes, you can open more than one RD account.
Q2: Can I transfer my RD account to another post office?
A: Yes, you can transfer your RD account to any post office.
Disclaimer
This article is for informational purposes only. Although we have attempted to provide accurate and up-to-date information, please consult your financial advisor before making investment decisions. The terms and interest rates of the Post Office RD Scheme may change from time to time. For more information contact your local post office or visit the official website of India Post.
