Post Office Scheme - Recurring Deposit Account

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  • The minimum investment is Rs 10 and then in multiples of Rs. 5/- for a period of 5 years. There is no upper limit on your investment.
  • The deposit has to be paid as monthly installments
  • The amount is always the same as the first amount deposited. If you invest 500 INR in the first deposit then you have to invest 500 INR for all of the five years. 
  • In case of default in payment, a default fee is chargeable for delayed deposit at 0.20 Paise per month of delay, for Rs.10 Denomination.
  • For Advance deposits for 6 months or 12 months, a rebate is allowed at the prescribed rate (For Rs 10 denomination:- Rs.1/- for 6 advance deposits, Rs.4/- for 12 advance deposits.
  • One withdrawal is allowed after one year of opening the account on meeting certain conditions i.e. you can withdraw up to half the balance lying to your credit at an interest charged at 15%.
  • Premature closure is allowed on completion of three years from the date of opening and in such case, interest is payable as per the rate applicable for the Post Office Savings Bank Account.
  • 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.
  • Illustration of returns
    Monthly InvestmentTotal Investment Money returned on Maturity

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    Also See

    Kisan Vikas Patra

    Monthly Income Scheme

    National Savings Certificate

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