India Post RD accounts come with a maturity period of 5 years or sixty monthly deposits from the day of opening
Any Indian citizen above the age of 18 years can start investing in a post office RD account with a minimum monthly deposit of Rs 100.
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- Last Update:September 26, 2021, 11:10 AM IS
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The Department of Posts has amended its rules and regulations for the disposal of RD or recurring deposit at maturity. Changes brought in to make the process easier after exposure to multiple account holders India Post The software plan highlights the need for crediting the outstanding RD loan/interest amount on the mature RD account. After the implementation of these new policies, post offices that are currently using Core Banking Solution or CBS-enabled software will deduct the outstanding RD loan or interest amount from the maturity account.
This deducted amount can be adjusted through the office account at the time of maturity payment. Simply put, after this change in the rule, India Post will not collect the outstanding RD loan or interest amount from the account holder at the time of maturity value. In case of pending loan repayment, the balance amount along with interest will be directly deducted from the maturity value of the RD account.
India Post RD accounts come with a maturity period of 5 years or sixty monthly deposits from the day of opening. It can be extended for another five years by applying at the post office where the RD account was opened. However, the interest applicable during this period will be the same with which the RD account was opened.
RD account holders also have the option to retain their account without making any deposits for five years after maturity. Savings scheme comes with loan facility and account holders can use their RD to borrow money. However, this facility can be availed only if you have completed 12 installments of RD and have continued it for at least one year.
With flexible repayment options, customers can avail loans up to 50 per cent of the RD deposit. The borrower has the option of paying the lump sum amount in equated monthly installments. The interest rate applicable on such lending is 2 per cent and the rate of return applicable on RD.
Any Indian citizen above the age of 18 years can start investing in a post office RD account with a minimum monthly deposit, which is a minimum of Rs 100. Currently, the interest rate offered by the post office on RD account is 5.8 per cent per annum.
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