Post Office RD: The RD offered by the Post Office is a highly secure and well-liked investment choice. It can be put into investments in a way that is comparable to SIP (Systematic Investment Plan). The unique aspect of this program offered by the postal department is that the investor’s funds are not fully tied up in RD at once. For example, it enables investors to regularly save and invest small sums of money each month. At present, the Post Office is providing a yearly interest rate of 6.7% (compounded quarterly) on RD, matching the interest rates provided by many leading banks on different fixed deposit durations.
Post Office Recurring Deposit, similar to FD
Post Office Recurring Deposit, similar to FD, is a secure investment choice with added convenience in terms of investment. It also offers higher returns for deposits. In Fixed Deposit, you must put a one-time payment into a scheme. In RD, you make monthly investments in various installments, similar to SIP. Interest in this program is compounded every quarter and then deposited into your account.
Minimum of Rs 100 must be deposited monthly
A minimum of Rs 100 must be deposited monthly in the Post Office Savings Recurring Deposit Scheme. Following this, deposits can be made in increments of 10 in any amount. There is no end to this. Cash or cheque can be used to open a Post office RD account. If the account is opened before the 15th of the month, the next deposit must be made by the 15th. In case the RD account is started after the 15th day of the month, the subsequent deposit must fall between the 16th day and the final working day of the month. The term of a recurring deposit is 5 years, meaning it will mature after 60 monthly deposits from the account opening date.