Post Office RD: Start investing with just ₹ 100, you will get huge fund on maturity; Know the rules regarding interest and loan

Post Office RD Scheme Benefits: In today’s era, financial security is very important for everyone. In any emergency situation, the need for money forces a person to run here and there. But, if someone saves even a small part of his income in a disciplined manner, then after time it turns into a big fund. But, the question is where to invest? The problem faced by many people is that they want to invest, but they are not aware of any right and risk free scheme where they can invest their money safely.

If you also have similar questions in your mind, then there is no problem. Today we are going to talk about one such scheme. Where you can invest some part of your income and that too without any risk. By investing in this scheme, you will get many benefits like ease of taking loan, tax saving and many more. Let us know everything in detail.

What is Post Office RD Scheme?

Post Office Recurring Deposit (Post Office RD) is a very popular and safe small savings scheme run by the Government of India. This post office scheme is the best option for those who can invest a large amount at once. In this scheme, you want to create a safe fund by saving a small part of your income every month. At present, people investing in this scheme get 6.7 percent annual interest. The most special thing about this scheme is that the interest is calculated on every three months basis, due to which investors get the great benefit of compounding their deposits.

Eligibility for investing in Post Office RD

• The person must be a citizen of India.
• Any single adult.
• Joint Account (up to three adults) (Joint A or Joint B)
• a. Joint ‘A’ type, which will be run jointly by all the depositors or the remaining depositors.
• b. Joint ‘B’ type, which can be run by any depositor or remaining depositors separately.
• A guardian on behalf of a minor
• A guardian (now called an authorized account) on behalf of the disabled person
• A minor who is above ten years of age
• Any number of accounts can be opened in the name of an individual or jointly with someone else.

Note: On turning 18, the account holder must post office They will have to submit a new Account Opening Form (AOF) and new KYC documents to convert their minor account into an adult account. Accounts can also be opened through e-banking or mobile banking facility. Please note that a Post Office Savings Account is required to avail the Internet Banking facility.

Deposit limit in post office RD

• Minimum- Rs 100 or any amount in multiples of Rs 10.
• Maximum – no limit.
• The first monthly deposit will be made at the time of opening the account and the amount of such deposit will be equal to the value of the account.
• If the account is opened before the sixteenth day of the calendar month, the next deposit equal to the first deposit will be made by the fifteenth day of each month; And if the account is opened between the sixteenth day and the last working day of the calendar month, then the account will be opened till the last working day of each month.

Loan facility against post office RD

• After the account has been operational for at least one year and deposits are made in the account every twelve months, the depositor can avail a loan up to 50% of the amount deposited in the account.
• The loan can be repaid in lump sum or in equal monthly installments.
• According to the rules of the scheme, in addition to the interest rate applicable on the loan account, simple interest at the rate of 2 percentage points will have to be paid.
• If the loan is not repaid by the time the account is closed, the outstanding amount will be recovered from the amount payable on account closure.

What if I close my RD prematurely?

• RD account can be prematurely closed after 3 years from the date of account opening.
• If the account is closed even a day before maturity, the interest rate applicable on PO Savings Account will be applicable.
• Premature closure of the account will not be allowed till the time advance deposit is made.

What about RD account maturity?

• 5 years from the date of account opening (60 months deposit)
• The account can be extended for another 5 years by giving application in the concerned post office.
• RD account can be kept without deposit for 5 years from the date of maturity.

Also read: Gold-Silver Rate: Gold became cheaper from Mumbai, Nagpur to Delhi, silver also declined; See the latest price of your city

Post Office and many more by Government of India Small Savings Scheme Are being run. Where good returns can be made on disciplined investment in the long run. If you also want to invest some part of your earnings, then contact your nearest post office office soon.