It is known to all that India Post offers 9 small savings investment schemes, which include the Post Office Recurring Deposit Account. The interest rate obtainable on these schemes is reread every quarter by the government. The Recurring Deposit account can be extended post maturity, for another 5 years.
So, should you invest in the Post Office RD scheme? Well, below are some pointers that will help you to make a decision.
>Interest rates presented is 7.2 per cent per annum, compounded quarterly, starting from July 1, 2019. For example, if you invest Rs 10 for 5 years, on maturity the account will make you Rs 725.05, on your total deposit of Rs 600.
>The lowest amount wanted for the opening of account is Rs 10 per month. There is no maximum limit.
>The RD account can be unbolted either by cash or cheque. The scheme also provides a nomination facility, which can be selected both at the time of opening and also after opening of the account.
>An investor can open any number of accounts in any post office, which can also be transferred from one post office to another
>A Post Office Recurring Deposit Account can also be opened in the name of a minor. However, the minor has to put on for conversion of the account in his/her name, after attaining majority.
So, now since you know the benefits and features that Post Office Recurring Deposit Scheme is offering, it’s time to make investments.