Post Recurring Deposit (RD)

Every year you save money & invest it. The most disheartening thing is that you invest every year at lower interest rates as compared to the previous year. How about an option that protects you from falling Interest rates & ensures your next 5 years savings to be invested every year at 7.50%. Yes, Recurring Deposits of Post office offers you much higher returns at 7.50% p.a. compared to Bank RDs which offer paltry 5.50%. So, if you decide your per month investment amt. of may be Rs. 1,000/- or Rs.5,000 or Rs.10,000 or more, you ensure for yourself 7.50% returns on your next 5 yrs savings too.

• Interest exempt from wealth tax. No TDS
• Accounts in the name of minors can be opened through guardians
• Any number of accounts can be opened
• One withdrawal upto 50% of the balance allowed after one year

Default / Revival:

• If there are more than 4 defaults in monthly deposits, the account shall be treated as discontinued. Revival of the account is permitted only within a period of 2 months from the month of fifth default. The account, in which defaulted installments are deposited along with default fee, is not treated as discontinued. Penalty: Rs. 20/- per Rs. 1000/- p.m.

Premature withdrawal:

• Account can be prematurely closed after 3 years from the date of opening of account and on such premature closure of the account, interest at the rate applicable from time to time on Post Office Savings Account shall be payable. However no premature closure of account is permissible until the period for which the advance deposits made is over.