Post Office RD Scheme: Post Office RD Scheme: Post Office Recurring Deposit (RD) Scheme is a savings scheme offered by the Post Office of India. This scheme promotes the habit of regular savings and ensures receipt of a lump sum amount after a fixed period.
Main characteristics
1.Minimum Deposit: Rs 10 per month and can be deposited in multiples thereof.
2.Term:5 years (60 months).
3.Interest rate: Determined by the government and revised on a quarterly basis. Currently, this rate is approximately 5.8% per annum.
4.Method of Deposit: Deposit is made in monthly instalments.
5. Due Date: Deposit can be made on fixed date of every month.
6.Partial Withdrawal: Partial withdrawal is allowed after 1 year.
7.Loan Facility: Loan can be taken against the deposit amount.
8.Nomination: Nomination facility is also available in the scheme.
Documents required to open account:
1. Identity Proof (like Aadhar Card, PAN Card, Passport etc.)
2. Proof of Address (like Aadhar Card, Electricity Bill, Passport etc.)
3. Passport size photo
4. Filling and submitting the account opening form correctly.
This scheme is suitable for those who want to save small amounts regularly and earn fixed interest on their savings.
More information about Post Office RD Scheme:
1.Quarterly Compounding: Interest is calculated on quarterly basis and is compounded, giving higher returns on savings.
2.Maturity amount: Maturity amount is obtained by combining regular deposits and interest, which the account holder gets after a period of five years.
Online Facilities:
1. Online Account: Now Post Office RD account can also be managed online, allowing you to check your account status anytime and anywhere.
2. Auto Debit: You can deposit monthly installments through auto debit facility from your bank account.
tax benefits
1. Tax Benefits: Tax benefits can be availed under Section 80C of the Income Tax Act on the amount deposited in Post Office RD account.
2. Taxation: Taxation rules apply on the interest received and it is taxable as a part of your total income.
This scheme is a safe and guaranteed savings option with no risk and offers fixed returns, hence it is very attractive for those who want to make a safe investment.
