National Savings Recurring Deposit - features, interest rates and benefits

National Savings Recurring Deposit Account

5-Year Post Office Recurring Deposit Account (RD)

Interest payable, Rates, Periodicity etc.

From 01.0 1.2019, interest rates are as follows:-
7.3 % per annum (quarterly compounded)
On maturity INR 10/- account fetches INR 725.05 . Can be continued for another 5 years on year to year basis

Minimum Amount for opening of account and maximum balance that can be retained
Minimum INR 10/- per month or any amount in multiples of INR 5/-. No maximum limit.

Salient features including Tax Rebate

1. Account can be opened by cash / Cheque and in case of Cheque the date of deposit shall be date of presentation of Cheque
2. Nomination facility is available at the time of opening and also after opening of account
3. Account can be transferred from one post office to another
4. Any number of accounts can be opened in any post office
5. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account
6. Joint account can be opened by two adults
7. Subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month and up to last working day of next month if account is opened between 16th day and last working day of a calendar month.
8. If subsequent deposit is not made up to the prescribed day, a default fee is charged for each default, default fee @ 0.05 rs for every 5 rupee shall be charged. After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within this period, no further deposit can be made.
9. *If in any RD account, there is monthly default amount , the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit. This will be applicable for both CBS and non CBS Post offices.
10. There is rebate on advance deposit of at least 6 installments
11. Single account can be converted into Joint and Vice Versa
12. Minor after attaining majority has to apply for conversion of the account in his name
13. One withdrawal up to 50% of the balance allowed after one year. It may be repaid in one lumpsum along with interest at the prescribed rate at any time during the currency of the account
14. Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions.
15. In case of deposits made in RD accounts by Cheque, date of credit of Cheque into Government accounts shall be treated as date of deposit