5-Year Post Office Recurring Deposit Account

Post office recurring deposit is small savings scheme promoted by Govt of India which can be opened in any of the post office. One can deposit as small as Rs 10 every month.

On maturity after 5 years, INR 10/- account fetches INR 728.90/-. Can be continued for another 5 years on year to year basis.Any individual (a single adult or two adults jointly) can open an account.

Features of post office recurring deposit

• Minimum INR 10/- per month or any amount in multiples of INR 5/-. No maximum limit.
• 6 & 12 months advance deposits earn rebate.
• Four defaults are allowed.
• Defaults can be paid within two months.
• One withdrawal upto 50% of the balance allowed after one year.
• Premature closure allowed after three years.
• Rate of interest 7.5% (quarterly compounded).
• Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions.

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