5 Year Recurring Deposit (RD) – Indian Post Office
5 Year Recurring Deposit (RD)
Maturity value from time to time (for denomination of Rs.10/):
|Period during which opened||Amount repayable for an account of Rs. 10/- denomination|
Minimum amount of Deposit is Rs.10. No maximum limit. Deposit should be made every month within the calendar month. Default fee is chargeable for delayed deposit at 0.20 P. per month of delay, for Rs.10 Dn.
Maximum defaults allowed in an account is four (4). After four defaults the account is treated as ‘discontinued’. Discontinued account can be revived by paying defaulted deposits, within two months from the fifth default. If it is not so revived, the account cannot be continued.
For advance deposits, including deposit for current month, rebate is allowed at the rate:
6 advance deposits…….Re.1/-
12 advance deposits: 4/-
Premature closure is permitted on completion of 3 years from the date of opening. Interest is to be calculated as per the rules and rate applicable to individual savings account. at the rate applicable to savings account from time to time is calculated and paid.
One withdrawal is permitted from the account on completion of one year from the date of opening, on the conditions that:
- At least 12 deposits should have been made
- Account should not have been discontinued one.
- Amount not exceeding 50% of the balance.
- Withdrawal may be repaid in one lump or in equal monthly installments.
- Interest is charged at 15%.
After maturity of the account, it can be continued for a further period of 5 years with or without further deposits. During this extended period, the account can be closed at any time. Post maturity interest is paid at the prescribed rate.
Under the protected savings scheme, on the death of depositor before maturity of the account, the legal heir is entitled to get full maturity value, subject to the conditions:
- Age of the depositor at the time of opening should be between 18 and 53
- Benefit limited to the maturity value of Rs.50 denomination
- Account should not have been discontinued as on the date of death
- At least two years should have been completed
- At least 24 deposits should have been made.
- For the first 24 months no default should be outstanding.
- No withdrawal should have been taken during the first 24 months.
Interest earned is exempted as per Section 80L of Income Tax Act. ,