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Updated 01.10.2016

Post Office Recurring Deposit Accounts

Post Office Recurring Deposit account provides the facility of saving small sums of money every month to meet future financial goals and earn relatively higher risk free returns.

Salient features of Post Office Recurring Deposit accounts

Eligibility

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:

PeriodInterest Rate
Upto 30.11.20117.50% per annum
01.12.2011 to 31.03.20128.00% per annum
01.04.2012 to 31.03.20138.40% per annum
01.04.2013 to 31.03.20148.30% per annum
01.04.2014 to 31.03.20168.40% per annum
01.04.16 to 30.09.2016s7.40% per annum
01.10.16 onwards7.30% per annum

Transferability

Transferable from one office to another.

Tax benefits

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.

Maximum defaults allowed in an account is four. After four defaults the account is treated as 'discontinued'.Discontinued account can be revived by paying defaulted deposits, within two months from the fifth default. If it is not so revived, the account cannot be continued.

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.

Premature closure is permitted on completion of 3 years from the date of opening. Interest is calculated as per the rules and rate applicable to individual savings account.

One withdrawal (Advance against Deposit) is permitted from the account on completion of one year from the date of opening, on the conditions that:

  • At least 12 deposits should have been made
  • Account should not have been discontinued one.
  • Amount not exceeding 50% of the balance.
  • Withdrawal may be repaid in one lump or in equal monthly installments.
  • Interest is charged at 15%.

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:

  1. The age of the depositor is not less than 18 years and not more than 53 years.
  2. The payment amount is restricted to the maturity value of an account of denomination of Rs. 50/-.
  3. The account has not become a discontinued account.
  4. 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.
  5. No withdrawal has been made from the Account during the first 24 months

After maturity of the account, it can be continued for a further period of 5 years with or without further deposits. During this extended period, the account can be closed at any time. Post maturity interest is paid at the prescribed rate.

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