Saving and investing doesn’t require a large sum of money to start. You can begin by investing as little as Rs 100 per month in the Post Office’s 5-year recurring deposit (RD) scheme.
This scheme offers guaranteed returns and is backed by the Government of India, ensuring safety for your investment.
Who Can Open an Account?
Anyone can open an account in the Post Office RD scheme, including adults and guardians on behalf of minors or persons of unsound mind.
Minors above 10 years old can also open an account in their own name, and there’s no limit to the number of accounts one can open.
Key Features and Benefits
The RD account has a maturity period of 5 years, with deposits made monthly. You can extend the account for another 5 years after maturity, maintaining the original interest rate.
Starting with Minimum Investment
Investing is accessible with a minimum of Rs 100, payable by cash or cheque. The deposit date for cheque payments is the clearance date.
Deposits made by the 15th of the month require subsequent deposits by the 15th, and deposits made from the 16th onwards are due by the month’s last working day.
Loan Facility and More
Customers can avail themselves of a loan up to 50% of their account balance after 12 installments, provided the account has been active for at least a year.
The loan is repayable in lump sums or equal monthly installments, with an interest rate of 2% plus the applicable RD interest rate. If the loan isn’t repaid by maturity, it’s deducted from the RD account’s maturity value.
This scheme provides a straightforward way to start saving and earning through regular deposits, making financial planning accessible to everyone.
