India Post currently offers interest at the rate of 7.2 per cent on investment in the Post Office Recurring Deposit Account at designated post office branches. The interest rates applicable to small savings schemes such as Post Office Recurring Deposit Account are currently reviewed by the Ministry of Finance on a quarterly basis. For the quarter ending March 31 - the fourth quarter of the current financial year, the finance ministry last month retained the interest rates at existing levels. The Post Office Recurring Deposit Account is part of the nine government-run small savings schemes.
Here are key things to know about the Post Office Recurring Deposit (RD) Account:
Rate Of Return
For the fourth quarter of current financial year, investment in the Post Office Recurring Deposit Account fetches interest at the rate of 7.2 per cent. An amount of Rs 10 invested in the five-year Post Office RD account offers a return of Rs 725.05 on maturity.
Minimum Investment For Opening Account
For opening an account under the Post Office Recurring Deposit scheme, one needs to invest a minimum of Rs 100 per month (or any higher amount in the multiple of Rs 10), according to the India Post website - indiapost.gov.in.
Maximum Investment Allowed
There is no upper limit to the investment allowed in the Post Office RD account.
Mode Of Payment For Setting Up Account
A Post Office Recurring Deposit Account can be opened against payment in cash or cheque. Subsequent deposits can be made up to the 15th day of the next month if the account is opened before the 15th day of the calendar month and up to the last working day of next month if it is opened between after the 16th of the month, according to the India Post website.