Post Office Recurring Deposit (RD), or National Savings Recurring Deposit Account (RD), is a small saving scheme where one can deposit on a monthly basis and get maturity amount after 5 years. The scheme provides 6.7 per cent annual interest. One can invest a minimum of Rs 100 per month or any amount in multiples of Rs 10 in the scheme. There is no maximum limit for deposit in the post office scheme.
One can open a single or a joint account.
A guardian on behalf of a minor, or on behalf of a person of unsound mind, and a minor above 10 years of age can open the post office RD account in their own name.
The guaranteed return scheme provides the facility of advance deposit up to 5 years.
Another salient feature of post office RD is that it also provides the loan facility.
After 12 installments are deposited and the account is continued for 1 year and not discontinued, the depositor may avail loan facility up to 50 per cent of the balance credit in the account.
The account can be closed prematurely after 3 years from the date of its opening.
Though post office RD has a maturity period of 5 years, its account can be extended for a further term of 5 years.
The extended RD account, however, can be closed at any time during the period of extension.
Post Office RD: Maturity amount on Rs 10,000 monthly investment
If your monthly investment in post office RD is Rs 10,000. In 5 years, your total investment will be Rs 600,000, the estimated interest will be Rs 1,13,659, and the estimated maturity amount will be Rs 7,13,659.
Post Office RD: Maturity amount on Rs 20,000 monthly investment
On investing Rs 20,000 a month, the total investment will be Rs 12 lakh, the estimated interest will be Rs 2,27,315, and the estimated maturity amount will be Rs 14,27,315.
Post Office RD: Maturity amount on Rs 30,000 monthly investment
On a Rs 30,000 monthly investment in post office RD, the total investment will be Rs 18 lakh, the estimated interest will be Rs 3,40,974, and the estimated maturity amount will be Rs 21,40,974.
