Post Office Recurring Deposit (RD) is a popular savings scheme offered by the Indian Government. It is a type of investment where you can save a fixed amount of money every month for a fixed period of time and earn a fixed rate of interest on it. The interest rate on Post Office RD ranges from 5.8% to 6.8% depending on the tenure of the deposit. However, calculating your savings and returns can be a challenging task. This is where our Post Office RD Calculator comes in. Our calculator allows you to easily calculate your savings based on the investment amount, tenure, and interest rate. With our calculator, you can plan your savings and secure your future.
Benefits
- Account can be opened by cash/cheque and in case of cheque the date of deposit shall be date of presentation of cheque.
- Nomination facility is available at the time of opening and also after opening of account.
- Account can be transferred from one post office to another.
- Any number of accounts can be opened in any post office.
- Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
- Joint account can be opened by two adults.
- Subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month and up to last working day of next month if account is opened between 16th day and last working day of a calendar month.
*If in any RD account, there is monthly default(s) the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit. This will be applicable for both CBS and non CBS Post offices.
- There is rebate on advance deposit of at least 6 installments.
Single account can be converted into Joint and Vice Versa.
Minor after attaining majority has to apply for conversion of the account in his name.
- One withdrawal upto 50% of the balance allowed after one year.
Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/- denomination in case of death of depositor subject to fulfilment of certain conditions.
In case of deposits made in RD accounts by Cheque, date of credit of Cheque into Government accounts shall be treated as date of deposit.
Rates/Interest
From 1.4.2014, interest rates are as follows:-
8.4% per annum (quarterly compounded)
On maturity INR 10/- account fetches INR 746.53. Can be continued for another 5 years on year to year basis.
| Type of Account | Minimum Deposit | Maximum Deposit |
| Individual Account | INR. 10/- and in multiples of INR. 5/- thereafter | No limit. |
What are Various Factors that Affect Post Office RD Interest Earnings?
The earnings generated from the Post Office RD can be influenced by several factors, like –
- Yields on government securities
The rate of interest on post office term deposits is dependent on yields from government securities (g-secs).
Such securities are issued both by the central and state governments. These are tradable instruments that are either short-term (like treasury bills) or long-term (government bonds).
As of 15th May 2020, the current yield on the 10-year government bond is 6.08%.
Documents Required
You are required to furnish the following documents in order to open a recurring deposit account with India Post:
- Duly filled Application Form For Opening of Account
- KYC documents including identity proofand address proof.
Acceptable identity and address proofs include driving license, passport, voter’s ID, job card issued by NREGA signed by the State Government officer or letter issued by the National Population Register containing details of name and address
How to Open Post Office Recurring Deposit Account
Online Process:
To open a Post Office Recurring Deposit Account online, you need to have an existing Post Office Savings Account and should be registered for Indian Post Office internet banking services. Given below is a step-by-step guide to so:
- Go to the Indian Post eBanking website
- Enter your registered “User ID” and captcha code and click on “Log In”
- Under the General Servicestab, click on the ‘Service Request’ option
- Follow the on-screen directions to initiate the Post Office Recurring Deposit opening request.
Offline Process:
To open a Post Office Recurring Deposit account offline, follow the steps given below:
- Download the PORD application form online or collect one from the nearest post office
- Submit the duly-filled form and the documents mentioned above along with a minimum deposit of Rs. 100 at the post office to open your PORD account