Post Office Recurring Deposit (RD) is the easiest way of small savings. You can open this account in any branch of the customer post office. In this you have to deposit a certain amount on a certain date every month.
Post Office Recurring Deposit (RD) is the easiest way of small savings. You can open this account in any branch of the customer post office. In this you have to deposit a certain amount on a certain date every month. Post Office RD is currently paying 6.7 percent annual interest. Post office RD account not only earns interest but also loans as per requirement.
An RD account can be opened at a post office with a minimum monthly installment of Rs 100. There is no maximum deposit limit. RD can be closed prematurely after 3 years. Besides, there is a facility to extend the account for another 5 years after maturity.
According to the post office website, if 12 installments have been deposited in the RD account and the account has not been closed after 1 year of operation, the account holder can avail the loan. As per the rules, up to 50 percent of the balance in RD can be availed as loan. The loan can be repaid in a lump sum or in equal monthly installments.
The interest rate of taking loan from Post Office RD is lower as compared to personal loan taken from banks. Interest on loans from RD account is 2% higher than interest rate on deposits in RD account (interest on RD account is 2%). Currently the annual interest rate on Post Office RD is 6.7 percent, meaning if the loan is taken, the interest rate on the loan will be 8.7 percent.
Note – Investing in crypto market, stock market or mutual fund involves risk. It has the possibility of harm as well as benefit. So before making any investment in crypto, stock market or mutual fund, consult your financial advisor. Or invest in mutual funds only after discussing with your financial advisor before making any investment.
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