Indian Postal RD for 5 years Recurring Deposit Account, Eligibility, Interest Rates, Maturity Period, Required Documents, Withdrawal of RD amount and other details about Indian Postal Recurring Deposit Account…
India post is the Department of Post in India that is basically involved with communication. Being the cornerstone of India’s Communication, India Post makes it possible for the social-economic development of India by taking a central role in communication. It does this by providing essential communication services to the people of India.
These services include the provision of life insurance, delivery of mails and collection of bills. By using the Small Savings Scheme, the Indian Post is also responsible for accepting deposits from the public. From this post, we will have a look at the Indian Post Recurring Deposit Account for 5 years.
What is Indian Post Recurring Deposit Account – Indian Postal RD
Indian Post Recurring Deposit Account is one of the many small savings schemes that India Post offers to the public. This savings scheme is based on a 5-year plan that recurs. From this scheme, you will be able to increase your savings after which maximum returns are guaranteed once the specified period of time elapses.
For any person who is interested in safeguarding their future, the Recurring Deposit Account is the pathway to achieving your goals. This is made possible by depositing fixed installments for a specified period of time usually about 60 months.
Qualifications necessary for opening a Recurring Deposit Account
- Any adult residing in India can open a Recurring Deposit Account.
- In the case of a joint Recurring Deposit Account, two adults can team up and open it.
- For a minor, the Recurring Deposit Account is opened through the parent or guardian name.
- A minor must be 10 years and above in order for them to open and operate a Recurring Deposit Account.
- A minor who becomes of age should change the account to their name by application.
- It is possible to change a single RD account into a joint RD account. The reverse is also possible.
Interest Rates from Indian Postal 5 years RD
As of 01/01/2018, the interest rates of a Recurring Deposit Account are at 6.9 percent which is compounded quarterly. Once the savings mature, an investment of Rs.10/- will fetch a whopping Rs.717.43. Depending on a person’s preferences, it is possible to continue with your RD account for 5 more years without necessarily having to make more deposits.
Maturity Period of the Indian Postal RD Scheme
The Recurring Deposit Account takes 5 years which is about 60 months for it to fully mature. An option of proceeding with your account for 5 more years is available and is done on a year to year basis with the option of either adding the deposit or keeping it constant. This decision is entirely made by the account holder.
Minimum and Maximum Amount Required to Open a Recurring Deposit Account
- The minimum amount allowed to start operating an RD account is Rs.10/- per month or any other amount that is a multiple of Rs.5/-.
- There is no specified maximum limit that one can reach once a Recurring Deposit Account is opened.
- You can make future deposits from the 1st to the 15th day of the month that follows.
- Opening of the account can either be done using cash payments or a banker’s cheque. In the case where cheque, is used, the date of presenting it will be considered as the date of your first deposit.
How Many Number of RD Accounts Allowed under Indian Postal Recurring Deposit Account?
There is no limit to the number of accounts that a person can hold at any given time. It is possible to open different Recurring Deposit Accounts by simply visiting any post office.
Witch Documents Required to Opening Indian Postal Recurring Deposit Account
The following documents are required before a person can successfully open a Recurring Deposit Account:
- Post Office Recurring Deposit Account opening form.
- PAN card.
- Address proof- This includes details such as Electricity bill, passport and telephone number.
- ID proof that is essential for KYC verification.
- Driver’s license.
Any Account Transfer Facility in Indian Postal Recurring Deposit Account ?
A person is allowed the chance of transferring the Recurring Deposit account from one post office to another.
Nomination Facility in Recurring Deposit Account
Nomination facility is only available in two different scenarios. This is when you open the RD account and after you finally succeed in opening the RD account.
Fine and Penalties for Delayed RD Deposits
- When an RD account holder fails to pay the subsequent deposit based on the agreed date a default fee is paid for every default made. The default fee is set at 5 paise for every 5 rupees.
- If an RD account holder regularly defaults 4 times, the account is discontinued by the Indian post and can only be revived in two months. If the account is not revived within the two months, the account holder cannot make any more deposits to the account.
- When a deposit is made to the RD account by use of a cheque, the date in which the cheque was credited into the governments account shall be taken as the deposit date.
- If an RD account holder has a default fee that has to be paid, one is required to pay the defaulted monthly deposit together with the default fee. After doing this successfully, an RD account holder can then pay the current month deposit. This directive is applicable for both CBS and non CBS post offices.
Rebate on Advance Deposit
The Indian post allows a rebate on any advance deposit of at least 6 installments.
Premature Withdrawal from Recurring Deposit Account
Only 50 percent of the balance is allowed if by any chance an RD account holder decides to withdraw the deposits before the expiry of the period which is usually months. The withdrawal can only take place if the account has been in existence for one year.
What After Death of Depositor
Death is a natural happening that cannot be avoided. In the case where an RD account holder dies, a full maturity value is allowed on the RD account. However, this is restricted to that of Rs.50/- denomination and is subject to the fulfillment of specific conditions that were set by the Indian post.