Post Office Recurring Deposit Account Check Online / Interest Rate 2018 / Calculator / Tax Benefit

Published Date - 24 March 2018 04:51:07 Updated Date - 24 March 2018 04:51:47

Post Office Recurring Deposit (PORD) Scheme is a systematic savings plan, where you can deposit your money for a definite time period and earn interest on that. You need to invest an equal amount of sum for a minimum period of 60 months. 5 years post office recurring deposit scheme allows you to earn fixed yet guaranteed interest on your investment. People who have some defined amount after a certain period of time can make monthly investment in Recurring Deposit (RD). For recurring deposit account, people will not have to make lump sum payment as in FD but can pay in installments every month. Indian Post Office rd interest rate 2018 is 6.9% p.a and can be calculated using post office recurring deposit calculator / RD Calculator. Post Office RD Account Check Online facility is available and candidates can make RD Account Login / RD Login at ebanking.indiapost.gov.in

A Recurring Deposit offers a host of benefits to individuals, helping them save up for a rainy day. Ease of use and flexibility have made it a popular savings tool, with both banks and post offices offering RDs. Most individuals who opt for Post Office Recurring Deposits belong to rural or semi-urban areas, where post offices are the preferred instrument compared to banks. One reason for their popularity among the masses is the high interest rate one earns on them, providing a healthy profit on maturity.

The interest rates are revised periodically, with a Post Office RD currently earning an interest of 7.1% per annum.

The interest is compounded every quarter, which ensures that a sum of money multiplies by the time it matures.

As per central government norms , Post Office Recurring Deposit Account is of 5 years. For opening of rd account online, people can make minimum initial deposit of Rs. 10 per month and afterwards any amount in multiples of Rs. 5. There is no maximum limit in 5 Years Post Office Recurring Deposit Account (RD).

RD Interest Rate is taxable and TDS @10% is deducted on the earned interest. Post Office RD Accounts offers higher Interests than Bank RDs. People can also compare other Post Office Schemes like National Saving Certificate (NCS)Public Provident Fund (PPF), Kisan Vikas Patra (KVP)Sukanya Samriddhi Yojana (SSY) and Post Office Savings AccountSenior Citizen Saving Scheme (SCSS) – check nsc vs ppf vs kvp vs ssy vs scss vs post office savings scheme.

 

Note: The interest rate mentioned above is valid as of January 2018The interest rate is subject to change and individuals should check the same before opting for a RD.

Who can open Post Office Recurring Deposit (RD) Account Scheme?

The Post Office Recurring Deposit (RD) Account Scheme can be opened by anyone of the below-mentioned individuals.

1. A single adult.

2. Two adults jointly (Remember that in case of joint accounts, the maturity amount will be payable to both jointly or survivor or to either of them or survivor). A single account can be converted into jointly and vice versa.

3. A guardian on behalf of a minor or a person of unsound mind.

4. A minor who has attained the age of 10 years, in his own name. This rules may not be known to many. However, it is the truth that if your kid is 10 years or more, then he can open the account in his name itself. Guardian is not required for such accounts.

A single depositor may have more than one account in his name or jointly with another individual. NRIs (Non-Resident Indians) are not eligible to open the Post Office Recurring Deposit (RD). Also, HUFs are not eligible to open the Post Office Recurring Deposit (RD).

However, if an individual opened the account and after that he becomes NRI, then he can continue the account till maturity on a  non-repatriation basis.

There is no maximum age limit to open the Post Office Recurring Deposit (RD) Account Scheme.

Tenure of the Post Office Recurring Deposit (RD) Account Scheme

It is 5 years scheme or 60 months scheme. Therefore, the maturity period will be 5 years.

Quantum of Deposits

A Recurring Deposit provides individuals an opportunity to save for the future by using the resources available to them. Unlike other deposits, the minimum deposit amount is kept low, ensuring that millions of rural and lower-middle class Indians can afford it. The table below highlights the quantum of deposits permitted in an RD.

Minimum Deposit

Rs.10 per month

Maximum Deposit

No upper limit

Individuals can increase their deposit in multiples of Rs.5, ensuring that they invest whatever amount is feasible.

                   

DOCUMENTS REQUIRED FOR POST OFFICE RECURRING DEPOSIT

The needed documents for opening an account are:

  • An account opening form from your nearest post office
  • Two passport size photographs
  • Address and identity proof such as the Aadhaar card, passport, driving license, voter ID card, ration card, PAN card or declaration in Form 60 or 61 as per the Income Tax Act 1961.

Recurring Deposit Account Opening – RD Interest Rate 2018

RD Account can be opened in any post office pan India. Candidates can also avail benefits of recurring deposit scheme in banks. Central govt. has permitted RD account opening in various Nationalized banks like SBI, HDFC, Canara bank to ensure higher reach and easy accessibility. Candidates can open this account in cash or through cheque.

RD Interest Rate 2018 is 6.9% per annum (compounded quarterly) with effect from 1 January 2018. The interest earned can be calculated using Post Office RD Calculator. RD Account offers sovereign guarantee, capital protection and quarterly interest payment which acts as source of income. This investment is secure as well as this investment has attractive interests.

Furthermore for Post Office RD Account Check Online, visit the official website – ebanking.indiapost.gov.in

Post Office RD Account Check Online – Tax Benefits

In case of Lump Sum Amount, Fixed Deposit (FD) is preferred and in case the person can save a defined amount from income every month, Recurring Deposit (RD) is preferred. Subscribers have the option to withdraw the earned interest or to reinvest it. However TDS @10% is liable to be deducted for both options under 194A of IT Act if the earned interest is more than Rs. 10,000 per annum. Moreover, Income tax on earned interest is calculated as per Income Tax Slab Rates.

Comparison of Tax on Interest – Recurring Deposit vs Fixed Deposit vs Savings Account

Specification

Fixed Deposit – Tax on Interest

Recurring Deposit – Tax on Interest

Savings Account – Tax on Interest

TDS Applicability

TDS @ 10% of Interest

TDS @ 10% of Interest

No TDS

Income Tax Deduction Allowed

Full Interest Taxable

Full Interest Taxable

Rs 10000 Deduction

Income Tax on Interest

As per IT Slab Rates

As per IT Slab Rates

As per IT Slab Rates

Recurring Deposit – Maximum / Minimum Amount

Candidates can open his account of minimum Rs. 10 per month and can make subsequent deposits in multiples of Rs. 5. There is no maximum amount of deposits. People have to pay this amount monthly and if the amount is not deposited then there is a penalty of Rs. 0.05 on every Rs.5. If there are 4 regular defaults then the account gets discontinued.

Individuals can revive this account in the next 2 months but if not revived then candidates cannot make further deposits.

When to deposit Post Office Recurring Deposit (RD) Account Scheme?

The first investment should be at the time of account opening. After that let us say you opened the account between 1st to 15th date of the month, then subsequent deposits must be within 1st to 15th of a month.

However, if the account opened between 16th to the end of the month, then you can deposit on any day between 16th date to end of the month.

If a deposit is made by means of a cheque/pay order/DD, the date of its clearance into the Post Office Savings Bank will be considered as the date of deposit.

Compare All Post Office Schemes

People can compare various post office saving schemes on the basis of Post Office Interest Rates Table 2018, Lock In Period (Maturity), Minimum / maximum account balance and risk factor involved through the table below:-
NSC vs PPF vs KVP vs ELSS vs SCSS vs RD vs TD vs SSY vs MIS vs PO Savings Account

Post Office Schemes

Interest Rate 2018

Lock in Period

Minimum / Maximum Investment

Risk

National Saving Certificate (NSC)

7.6% compounded p.a but payable at maturity

5 Years

Minimum amount is Rs. 100 and no Maximum limit

Risk Free

Public Provident Fund (PPF)

7.6% compounded yearly

15 Years

Minimum amount is Rs. 500 and Maximum amount is Rs. 1.5 lakh

Risk Free

Kisan Vikas Patra (KVP)

7.3% compounded yearly

9 Years 10 Months

Minimum amount is Rs. 1000 and no Maximum limit

Risk Free

ELSS Funds

12 to 15% expected returns

3 Years

Minimum amount is Rs. 1000 and no Maximum limit

Market Related Risks

Senior Citizens Savings Scheme (SCSS)

8.3% p.a from 31 March / 30 Sept / 31 December

5 Years

Minimum Deposit is Rs. 1000 and Maximum Rs. 15 lakh

Risk Free

Recurring Deposit (RD)

6.9% p.a compounded quarterly

5 Years

Minimum Rs. 10 per month and Maximum no limit

Risk Free

Term Deposit Amount (TD)

6.6% to 7.4% p.a calculated quarterly

1 to 5 Years

Minimum Rs. 200 and no Maximum Limit

Risk Free

Sukanya Samriddhi Yojana (SSY)

8.1% p.a compounded annually

Till 21 years

Minimum Rs. 1000 and Maximum Rs. 1.5 lakh

Risk Free

Post Office Monthly Income Scheme (MIS)

7.3% per year payable monthly

5 years

Minimum Rs. 1500 and Maximum Rs. 4.5 lakh

Risk Free

Post Office Savings Account

4% p.a

No Lock In Period

Minimum Balance Rs. 50 (non-cheque) and Rs. 500 (cheque) and Maximum Rs. 1 lakh

Risk Free

Recurring Deposit Account Interest Rate 2018 is similar to the Interest of FD. But in FD, people have to make lump sum payment, while in RD people can invest in installments. Moreover, FD Interest is paid yearly while RD Interest is paid quarterly. People can also make rd login at website of Post Office RD Account Check Online.

What if you failed to deposit or default in Post Office Recurring Deposit (RD)?

# If defaults are not more than 4 months-If your default is not more than 4 months (7 months for  personnel of Defence Services (excluding Civilian Defense Employees)), then you can extend the maturity date to equal numbers of such defaults. For example, if you defaulted for 3 months, then you can extend the maturity date to 3 months. You can deposit the defaulted amount during such extended period.

# If defaults are more than 4 months– If there are more than 4 defaults ((7 months for  personnel of Defence Services (excluding Civilian Defense Employees)), the account will be treated as discontinued. The revival of the account will be permitted only within a period of two months from the month of fifth default.  If the depositor fails to deposit next monthly deposit within this time prescribed, a default fee at the rate of 5 paise for every Rs.5 per defaulted deposits will also be paid along with a regular monthly deposit.

If you deposited all defaulted deposits along with prescribed default fee and within a prescribed time, then the account will not be treated as discontinued.

Advance deposit facility in Post Office Recurring Deposit (RD)

You can deposit in advance into your Post Office Recurring Deposit (RD). But the minimum such advance deposits are 6 monthly installments. You can opt this option at any point of time in a month. There is a rebate for such advance deposit and it is as below.

# If you deposit more than 6 but less than 11 installments in advance in a month-Rs.1 discount for each Rs.10 installment. Therefore, if you are depositing Rs.10,000, then the discount is Rs.1,000.

# If you deposit more than 12 installments in advance in a month-Rs.4 discount for every Rs.12 deposits and one rupee for the balance, if any, of not less than six deposits.

Premature closure of Post Office Recurring Deposit (RD)

You are allowed to close the Post Office Recurring Deposit (RD) at any point of time after 3 years of completion. But you will not receive the RD interest rate on such premature closure account. Instead, Post Office will pay you the savings account interest rate.

However, premature closure is not allowed until the period for which the advance deposit made in cases of advance deposit in RD.

Whether you can extended the Post Office Recurring Deposit (RD)?

Here you have two options to extend and I explained the both as below.

1) Extension of Post Office Recurring Deposit (RD) with the contribution

If you completely paid 60 monthly installments at maturity time, then you can extend the account for further 5 years. However, this extended account is considered as fresh account for deposit and interest rate calculation. The new RD rules will apply to such extended account.

The only exception during this extended period is that you can discontinue the account at any point of time. There is no such hard rule that you must complete another 3 years to close it.

However, you will not receive the RD interest rate for such premature closure accounts. Post Office will pay you the savings account interest rate.

2) Extension of Post Office Recurring Deposit (RD) without further contribution

If you completely paid the 60 monthly installments at maturity time, then you can extend the account for further 5 years without any further contribution.

However, if you closed the account before the 5 years (at any point of time you can close it), then you are entitled for the post office savings account interest rate.

RD Nomination Facility

Subscribers are allowed to multiple accounts as well as joint RD accounts in Post Offices. People can open this type of account in the name of a minor or for themselves. Facility of nomination is available at the time of account opening or even after opening the account.

In RD accounts, any subscriber can operate more than 1 accounts in individual capacity or jointly. There is no maximum limit on the monthly deposit made by an individual.

POST OFFICE RECURRING DEPOSIT FEATURES                

  • An account can be opened by cash only.
  • One account can be opened in one post office.
  • To keep the account active, it is necessary to have atleast one transaction (either deposit or withdrawal) in three financial years.
  • You have the option to convert a Single account into Joint and Vice Versa.
  • Two or three adults can open a Joint account together.
  • Cheque facility can be taken in an existing account also.
  • Nomination facility is available at the time of opening and also after opening of account.
  • You can transfer your RD account from one post office to another.
  • Account can be opened in the name of minor. Also, a minor of 10 years and above can open and operate the account.
  • Minors need to apply for conversion of the account in his/ her name after attaining majority.
  • Customers are allowed to Deposit and withdraw through any electronic mode in CBS Post offices.

What if the depositor dies before the maturity of Post Office Recurring Deposit (RD) Account?

In the case of the death of depositor in a single account or both in joint accounts, your nominee will not be allowed to deposit in such accounts.

Nominee or legal heir is allowed to withdraw the full value of RD account as of today immediately.

However, below is some exception to it.

If 5 years completed but not extended, then such account will be eligible for savings account interest rate (for the period of the days after maturity).

If less than 5 years completed, then nominee have rights to withdraw the money at the time of maturity, then the savings account interest rate will be applicable for such amount to till maturity period.

In the case of joint accounts, if one holder dies, then the surviving holder can continue the account as usual. However, if the surviving account holder wish to close the account, then he can close it at any point of time.

In the case of death of a guardian, the new guardian may close the account at any point of time.

Advance withdrawal facility in Post Office Recurring Deposit (RD)

If your account is not in a condition of discontinued, then you are allowed to withdraw after a year (or 12 installments paid) but not more than 50% of the deposits made into account.

You can repay at any point of time before the closure of an account. They charge some simple interest on such withdrawal.

If you have not paid the due advance and interest on that, then at maturity time, then during payment such withdrawal is recovered and paid to the depositor, nominee or legal heirs as the case may be.

Procedure of minor attaining the majority in Post Office Recurring Deposit (RD)

  1. Minor can continue the account till maturity by writing a letter to Post Office as ““I hereby declare that the Post Office Savings Bank General Rules, 1981 and the Post Office Recurring Deposits rules 1981 have been read by/to me and that I accept the said rules and all such amendments thereto as may be issued from time to time as binding on me”.
  2. If he intends to stop then he can do so by claiming the proportionate amount.

References

— For more details, visit the official website indiapost.gov.in

 


Leave Your Comment Here