All about Post Office Recurring Deposit (RD) Account Scheme

Is Post Office Recurring Deposit (RD) Account Scheme is one of the best recurring deposit scheme in India? Many of us invest in this product. However, we hardly know the rules and regulations of the same. Let us see rules in details.

Post Office Recurring Deposit (RD) Account Scheme

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.

Minimum and Maximum Deposit in Post Office Recurring Deposit (RD) Account Scheme

  • The minimum amount to deposit in Post Office RD is Rs.10 and in multiples of Rs.5.
  • There is no such maximum limit specified.

What is the interest rate of Post Office Recurring Deposit (RD) Account Scheme?

Currently, as per the new rules of Post Office Saving Schemes 2016, the interest rate will be declared on a quarterly basis. Hence, while opening the account, you have to track what is the rate of interest for that particular quarter. Based on that the interest will be fixed for your RD. Refer this post for the changes “Post Office Savings Schemes -Changes effective from 1st, April 2016“.

Tax Benefits of Post Office Recurring Deposit (RD)

There are no tax benefits available by investing in Post Office RD. However, the interest income should be considered as taxable income. This interest income will be taxed under the income head of “Income from Other Sources”.

There is no TDS on such accumulated corpus. But it is purely depositor responsibility to declare the income and pay the tax as per his tax slab.

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.

Nomination facility in Post Office Recurring Deposit (RD)

You can nominate during account opening time or even after the opening of the Post Office RD at your ease.

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.

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.

How to open Post Office Recurring Deposit (RD) Account Scheme?

# First select the Post Office where you want to open the account. Remember that you can transfer the account anywhere in India at a later stage.

# Fill the Post Office Recurring Deposit (RD) Account Opening Form. Download the same HERE.

# Furnish all details provided in the form like PAN details, address proof, nomination details.

# You must carry original PAN Card, Address Proof, and ID proof for the in person KYC verification purpose.

# Submit the same and start operating the account.

Post Office Recurring Deposit (RD) Account Scheme -Best recurring deposit plan?

After reading all features and benefits of the RD, do you feel that it is BEST RECURRING DEPOSIT PLAN? My thoughts are as below.

# Liquidity is an issue. Hence, I try to avoid the product as much as possible.

# Online facility of deposit is yet to takes place. Hence, operating the account may be cumbersome (Only option is to link the post office savings account to the recurring deposit account for standing transfer instruction to the RD.)

# There is no tax benefit. Hence, no point in investing for your 5 years goal as a debt instrument. Instead of that, short-term or ultra short term debt funds feels more tax efficient.

# Treat this product as debt product. Hence, safety, liquidity, and tax efficiency must be your priority rather than return expectation.

# Rules may confuse many or few Post Officials may not know the rules completely. This may turn to be the biggest hazard in investing and operating RD account.

263 Comments

  1. I have paid 4 rd installments but i am not able pay further installments can I close this account and how much amount will i get back .

    Reply
    • Dear Ravi,
      Yes, you can. Approach the concerned post office.

      Reply
  2. Sir,I have not paid my Rd amount for 6months because of locked down,now I am trying to pay with IPPB aaplication…but it shows the status that my Rd account is frozen.why it is so..?what should I do?

    Reply
    • Dear Karuna,
      I think it turned inactive. Visit the post office and activate it.

      Reply
  3. Sir, now i’m completed my post office RD deposit 1 year, now i’m planning to take 50% advance and stop next deposits, what is the procedure? , we can stop this after receiving of advance? Balance 50% we will get after 2 years?

    Reply
    • Dear Faisal,
      Regarding the process, approach the concerned post office.

      Reply
  4. Helo sir, I have to clear one last month of my 5 years rd period after that my 5 years will complete , when will they give money back sir..

    Reply
    • Dear Mohan,
      Approach the Post Office and request for the closure.

      Reply
  5. Sir, is aadhaar card mandatory to submit after the maturity of an rd account? Because I don’t have so I’m facing a problem, I thought only pan card is enough.

    Reply
  6. Sir,

    I have a clarification on the rate of interest when RD account is extended. As per my broker, I will get the old rate i.e. 8.4% for account opened in June 2015. I checked various web sites and India POST web site but nowhere interest rate is mentioned for extensions. I also downloaded an app “Post Office Interest Calculator” by relicus global and that also says that old interest will continue.

    Please advise.

    Reply
    • Dear Anuj,
      For extended accounts, the new rate will be applicable than the old.

      Reply
      • Thanks sir for your quick help. Is there some reference that I can show him as many people are following my broker?

        Reply
        • Dear Anuj,
          Why not rather than trusting either me or broker, approach the post office? This is the standard rule and I am not sure how he is misguiding.

          Reply
          • Thanks Sir.

            Reply
  7. If I deposit 10000 x 12 months together in post office rd account, how much rebate I will get

    Reply
    • Dear Kapil,
      Refer the above post. I have already written on this.

      Reply
  8. Dur to covid 19 I’m facing financial crises, I have made investment in only post office RD. two years have been completed, now I want to break RD as if I take loan it will be restricted to 50% only
    Plz suggest any means by which I can break the RD

    Reply
  9. Hello Mr. Basavaraj.. I had an RD account with an agent who is not from my town.. I just wanted to know if the RD accounts that I hold with this particular agent are transferable to a nearer postoffice where I live. If so what needs to be done.. please guide me

    Reply
    • Dear Saji,
      Yes, you can do so. Approach the Post Office where your RD is currently active.

      Reply
  10. Is it mandatory to have a SB account in post office to collect the matured RD amount?

    Thanks for reply in advance

    Reply
  11. Hi sir, I had a RD in post office ,maturity date is in April 2020.
    is my account will be discontinued.

    Reply
  12. Sir my rd account has been discontinued from last two years.what is the procedure to get the amount that deposit ed.

    Reply
    • Dear Pinku,
      Approach the Post Office and by paying penalty, you can reactivate it.

      Reply
  13. Sirji, Today Date-21/04/2020,
    My Recuring Account Amount Is 75000, So Sir Possuble, Today Withdrawl, Bcoz Uegent Need, In This Lockdown…!?

    Reply
  14. I had opened PDRD account on Aug-2015.I have made only two installments..after that I stopped paying because I moved to different location..Can I get the two month amount which I had paid after maturity period ends

    Reply
  15. Dear Sir,
    If i want to close my RD account prematurely after 3 years, what is the interest rate will apply. Whether it is rate of interest during opening the RD account or SB interest of that time?

    Thank You

    Reply
  16. Hello sir, is it possible to withdraw money after one year from RD accountin emergency situations..?

    Reply
  17. Can I change the a/c holder name to spouse name?

    Reply
    • Dear Mercy,
      You are not allowed to do the account holder’s name.

      Reply
  18. Sir can I draw rd amount only after 6 month from opening.i have paid only 2 month amount.but now I want to draw money.

    Reply
  19. How to withdraw Rd money from post office

    Reply
  20. Can I withdraw my RD amount before 3 years?

    Reply
  21. Hi sir,
    Can we deposit different installment amount each month?
    That is 500 in 1st month, 2000 in 2nd month and 1500 in 3rd month like this….

    Reply
  22. Sir, I wanted to ask that on the request of the depositor can the RD account be transferred from one agent to another as the initial agent died?

    Reply
    • And I would also like to know if it possible the n what are the rules of it

      Reply
  23. hello sir,i want to open 5000 rs per month rd in post office,if ican make advance payment of rs 60000 in starting ,what will be the rebate on that

    Reply
    • Dear Ankush,
      Refer the details provided already in the above post.

      Reply
  24. Dear Sir,

    My RD account is matured this month (Feb 2020) and would like to extend it for another 5 years with the same deposit amount. I read that the interest rate of my RD won’t continue and the new rates will be applicable. So it’s similar to closing the existing RD and opening a new one with a new interest rate, the extension only helps in not feeling the details and updating the forms again. Am I right here? Thanks in advance.

    Reply
  25. I open a rd account on 21th march 2015 so what is my maturity date?

    Reply
    • Dear Jishan,
      Is it so hard for you to calculate the maturity date?

      Reply
      • Actually i want to know that is 21th march 2020 or 31th march 2020 will be the maturity date?

        Reply
  26. Hello , I have opened RD Saving account at Post office(near where I stay) I deposit 500 RS every paid but after 5 times I stopped as I move to other place … so my balance is 2500 and this Aug 2020 I wil complete 5 years .. will I be eligible to claim with interest

    Reply
  27. Hi, I have an RD account. Which were supposed to be matured on 29th-nov. But due to confusion my agent and I gave the application for account closer on 26th-nov (3days early) and account got closed by post office. I got a interest rate of savings account not the R.D. account.
    What we can do for this. Agent and I both got confused in the maturity date and Post-office counter person did not informed us that it is a premature closer.

    I lost around 20000/- just because we closed the account 3 day early. Please suggest what we can do to correct it.

    Reply
    • Dear Dhiranjan,
      As the maturity is few days away and you are eligible to close the RD after 3 years of completion, savings account interest is not applicable to you. Hence, you have reason to fight.

      Reply
  28. Hello, My brother and my mother has joint account, my brother passed away, per your article my mother can close the account. What are the formalities and what paperwork is required for the same.

    Reply
  29. Sir, my rd has matured. I want to withdraw the same. Is it possible to withdraw from any of the post offices. Or should I go to the concerned post office where I opened?

    Reply
    • Dear Rosin,
      You have to sadly visit to the Office where it is opened.

      Reply
  30. Dear Basavaraj,

    I transferred my RD account to a different post office one year ago. After the transfer, the first payment into the account is not reflecting in the account statement. But there is no default in payment (or default fee) applicable as well. Now that I have made 26 payments, the account balance shows only 25 payments.

    Any idea this could be due to error in software?

    Whom should I approach regarding the issue?

    Kindly help.

    Reply
    • Dear Santhosh,
      Yes, it may be an error with their software. Better to contact the new branch at first.

      Reply
  31. What is default fee for subsequent month?
    I am clear about first month.

    Reply
  32. My RD has got matured this month. The agent is insisting me to an account with Indiapost to withdraw . Is the only way to withdraw my amount?
    Can’t I get this money in to any of my existing bank accounts?

    Reply
      • Sir i need ur advice.my rd is matured two years before but my rd copy is misplaced but i have rd number.how can i withdraw my rd amount.pls suggest

        Reply
        • Dear Ankita,
          Visit the concerned Post Office and take the help of them.

          Reply
          • Sir if we pay 3 instalment after 6 months not pay can i continue

            Reply
  33. Sir mene RD khula he aur 13 months mene deposite kiya abhi me surrender karna chahta because of financial problem. Is it possible sir..please suggest me

    Reply
    • Dear Purnanda,
      Refer above post properly. I have already covered this aspect.

      Reply
  34. insted of all verification during opening any RD can any account holder compelled to deposit his/her ID

    Reply
    • Dear Pankaj,
      I am unable to understand your point. Can you elaborate more?

      Reply
  35. Is the nominee continue the deposit in recurring deposit account after the death of depositor.own his name.pls explain.

    Reply
      • Dear , basavraj. Pls read recurring deposit rules 1981 rule no.12 (2) maybe nominee his own name continues account.

        Reply
        • Dear Mahesh,
          Please understand the nominee rights. He is acting as a trustee of the asset but turned to be owner of the asset. In such a situation, how can a nominee claim the asset automatically and CONTINUE?

          Reply
      • My 22 rd installment are completed but some personal reasons around 6 month I am not paying any rd show what should I do now help me

        Reply
  36. I have a RD account in post office. But I dont have saving account in post office. So my question is maturity amount can transfer in my SBI account ? what is the procedure.

    Reply
  37. My Rd going to mature by next month. But my agent saying that I need to open a new bank a/c in SBI to withdraw the maturity amount. Is there any such rule? Can I withdraw the amount through any of my existing a/c with other bank?

    Reply
    • Dear Vimal,
      Yes, it is true. Because now they transfer the maturity amount to your account only.

      Reply
  38. if a person stops depositing after 6 months in post office rd scheme will he get the deposit amount after 5 year

    Reply
  39. in case RD amount withdraw for 4 years 11 months 29 days by mistake withdraw procedure done, now interest came for 3 years. now what to do recover all interest i.e. 5 years on amount

    Reply
    • Dear MS,
      It is a mistake by Post Officials. Let them correct it.

      Reply
      • Rd account closed 1 month before cheque also issued now they are saying can’t do anything

        Reply
  40. Hi,
    I have an RD account in post office. I have paid for 45 months. My maturity date is next month but I want to withdraw the money now.
    Is it possible. If yes what is the procedure.

    Reply
    • Dear Syed,
      You can preclose the same. Check with Post Officials.

      Reply
  41. Is there any benefit if i open RD account without an agent?

    Reply
  42. Hello Sir, Can I pay post office RD online?

    Reply
  43. Hello sir,i have an RD account in post office.From past 5 months i was unable to pay the amount.today when i went to post office to pay the pending amount ,they told my account got closed.Is that possible? Can I pay my amount further,what should i do next?

    Reply
    • Dear Ann,
      It is not closed but in an inactive mode. You can reactivate it again.

      Reply
  44. Can I transfer my R/D account to other agent

    Reply
  45. Hi sir..

    My name is SEKHAR.. iam worked In privite sector. Sir iam paid 5months to postal RD.each month 6000.now iam stopped (discontunued)from 5months this. So how can i withdraw my amount? or How can i continue please tell me. .

    Reply
    • Dear Sekharbabu,
      You are allowed to close the RD after the completion of 3 years.

      Reply
  46. What are the rules for availing loan on RDs?

    Reply
    • Dear Padmanabhan,
      No such rules, but you can advance as 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.

      Reply
  47. Sir how to change my single Rd account to joint account.. Please tell me a procedure

    Reply
    • Dear Raji,
      I think they not allow not to change it as joint account.

      Reply
      • Thank you sir

        Reply
  48. hi sir, i had made RD deposit for 60months, maturity date is came. now how to withdraw that amount?
    officer in the post office is saying to open a savings account in the post office. Is it must?

    Reply
  49. My rd account matured 5 years ago.i didn’t deposit further.what will be my maturity amount for 250 denomination.

    Reply
    • Dear Nik,
      Please contact the Post Office to understand the actual values. Because it depends on the interest rate applicable to your RD.

      Reply
  50. Sir, i have rd account. If i deposit 12 instalment in advance can i get rs 1 rebate for each 10 rs for the remaining 48 installment. My monthly installment is rs 10000.can i get a rebate of rs 1000 for each month for the remaining 48 month(total 48000).

    Reply
    • Dear Sneha,
      You will not get the rebate on your all remaining installments but on the installments for which you are making advance payment.

      Reply
  51. Dear Sir, pls tell that to get full and final payment of matured RD is it necessary to open saving account in post office to take the money or post office can transfer it in our bank account directly.

    Reply
    • Dear Ranjeet,
      Now it is mandatory to open savings account with Post Office.

      Reply
  52. Dear sir,mere mummy ka RD account post office me tha but usme Nominni nhi register karwaya unhone ab mummy hamare bich nhi rhe and post office se bhi koi guidance nhi de pa rhe ki ham RD claim kese Kare ,to please hame btaye ki ham Kya Kare.

    Reply
    • Dear Gayatri,
      Approach the bank with your mother’s death certificate, RD passbook and legal heir certificate to claim the amount.

      Reply
  53. Dear Sir, I have a RD account in postoffice in which I deposit an amount of Rs.5000 per month. This year I have got a rebate of Rs.2000 on an adavance deposit of 12 months amounting to Rs. 60000.They have calculated the rebate amount as 4 per Rs.10. So in 5000 I got a rebate of 2000. Is this calculation correct or should I get a rebate on amount 60000.?

    Reply
    • Dear sir,

      Can you explain how this correct amount, the post office provide us 1 Rs per 10 and 4 Rs per 12 as a rebate for such advance deposit, it should be more then 2000 SR if she deposit her 12 installments in a month according to below given information by your website.

      Please advise.

      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.

      Reply
      • Dear Amjad,
        For Rs.12 rupee the discount is Rs.4 accordingly you can calculation proportional amount.

        Reply
  54. Hi sir I m kalisha from vijayawada , i was opened a rd account in post office on my wife name on June 2016 . I was paid 6000 every month till Aug 2017, after that due to financial problems i didn’t continue the account.when i can get that my deposit amount from post office and how much I can get .

    Reply
  55. Sir I opened Post office Rd on 3rd Jan 2018 one year ago & deposited rs.1.20 lakh in one go for one year instalment @ 10k pm but now I want to stop it @ withdraw it after one year please guide me how to do it. Regards R K Nigam

    Reply
    • Dear Rajive,
      You can withdraw it after the completion of 3 years.

      Reply
  56. Dear Sir, Our RD is finished 60 months we payed. We applied for maturity amount one weekfinished but we are not getting checK. Po is sharada nagar, hyderabad. 500070

    Reply
    • Dear Murali,
      Please cross check with concerned post office to find out the reasons behind delay.

      Reply
  57. Hi sir,
    I am planning to open an RD account with 10000/- per month for 3 years period, if I open in a bank I see that tds is levied on it. But in post office rd as there is no tax, but it is 5 year plan if I want to close the post office rd in 3 years what will be the interest I be getting, should I choose to do it in a bank or post office , please suggest, thank you in advance

    Reply
    • Dear Naresh,
      Do you feel avoiding TDS means avoiding TAX? Regarding your requirement, you can open with Post Office and close it once it completes 3 years. You will get the same interest rate without any penalty.

      Reply
      • Sir , but as it is written in the blog “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” as the savings account interest will be just 4 to 4.5 percent which we get on a normal savings account then what difference does it make . if that is not the case then wat could be the approximate interest i can expect for rs10000pm * 3 years. Could you please suggest why and in what all ways it is better for me . Thank you

        Reply
  58. Dear Sir
    I opened a RD account on Nov22,2015 for 5year tenure. But since Sept 2017 onwards I unable to deposit the said amount. My question is shall I withdraw my amount now.

    Reply
  59. I have 3 rd account and due to some reason I have failed to submit monthly installment from 5 months and I want to continue it . What can I do

    Reply
  60. Yearly recurring already paid for 49 months now 12 months is left and I dont want yearly debate to miss .earlier due to post mistake we had paid one month extra to save debate earlier now in last year how can I save yearly debate.pls advice

    Reply
    • Dear Rachana,
      I am unable to understand what your issue is. Can you please elaborate more?

      Reply
  61. Hi, i had opened a P.O recurring deposit in 2007 and had paid the amount for a year. Then did not continue, can I still remover the money as its already crossed 11yrs.

    Reply
  62. Sir,
    Please let me know non taxable long term (5 Year or more) fixed deposit options even in senior citizen schemes (actually I want to deposit 10,00,000 with paying any time of tax)

    Reply
    • Dear Deepa,
      Sadly there are no such tax-free options available.

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

    If you completely paid 60 monthly installments at maturity time,…………………………..The new RD rules will apply to such extended account.
    In this above statement, please explain the the new RD rules for me. Actually I have done full payments and continuing an rd. When I started the rd the interest rate was 8.4. So when I am continuing my rd since the current rate now is 6.9. Shall I get the same old interest rate or the new rate for my continuing one and please let me know the interest rate for my money in finished rd. Also if I want to close continuing rd what will be the rate and procedure. Please help.
    Deepa S

    Reply
    • Dear Deepa,
      When you extend the RD, then the prevailing interest rate will apply.

      Reply
      • Thanks …..

        Reply
  64. what will be the rebate if I pay 12 months installments in advance. At present, I am depositing Rs.10,000 per month

    Reply
    • Dear Vishwanath,
      Please refer to the above post properly. I have already explained the same in detail.

      Reply
  65. Hello Sir,
    I currently have a RD running for the past 3 years (out of 5 years), I have opened it in my wife’s name, I was paying all the installments, now if I want to change the RD account to my name and continue for the remaining 2 year period, Is it possible?

    Reply
  66. can we change the nominee after next or next month like , after we opened the account with RD?

    Reply
  67. Hi Basava,

    I am having 4 questions.
    1) is there any possiobility to deposit 30laksh at a time in post office under this RD?
    2) can we change the nominee after next or next month like , after we opened the account with RD?
    3) can we close the account after 1 month ?
    exp: if we found best scheme in out side in such a cases.
    4) can’t we keep two keep two nominees ?

    Thanks,
    Prasad

    Reply
    • Dear Prasad,
      1) RD is a recurring deposit, not a one time deposit. Hence, it is not possible of lump sum investment for ONCE.
      2) YES.
      3) NO.
      4) YES possible.

      Reply
  68. I have 5 Year Recurring Deposit (RD), and this is my second last month of maturity of RD, so

    should i have to pay last month installment or not?

    Reply
    • Dear Rahul,
      If the RD is completing 5 years, then you no need to pay on 1st month after completion of 5th year.

      Reply
      • sorry i hvn’t understood…

        My recurring Deposit will complete in july, 17 this year….so should i have to pay july month installment or not?

        Reply
        • Dear Rahul,
          If the 5 years completion is on July 2917, then yes you have to pay up to July 2017.

          Reply
  69. Can I shift my recurring deposit to another post office since my nearby one’s service is very poor. Often I have to come back due to system failure/slow /updation or rude behaviour of the clerks I curse even the time I thought of starting the RD

    Reply
    • Rema-Yes, you can transfer Post Office RDs to your nearest Post Office.

      Reply
  70. Sir I deposit 12 months Rd in advance that is 24000 rs (2000 per month).what rebate will I get on this.

    Reply
  71. Hi .. i have a RD in post office which is about to mature after 5 years which is 8.40% interest rate (started RD in 2013). I am thinking of renewing the RD to another 3 years and as per the blog i believe the new interest rate will be applicable as per April 2018. Please confirm. Also, would you be able to suggest a better option to FD or any other option for a better rate of interest for the amount which is matured now. Lets say the amount is 300,000 (5000 * 60 months). would you tell me the better option where will the rate of interest is more and Reliable ?

    Reply
    • Ram-Yes, the rate of interest at the time of renewal will be applicable. Hard to say better option with mere few lines of your sharing.

      Reply
      • Thanks for the reply. I am just asking if I want to invest 300000 the matured amount what will be the better option other than post office for a better rate of Interest and reliable organization.

        Reply
  72. what is maturity value. how does it work. there is interest as well.

    Reply
  73. Does the interest rate for post office RD remains the same for whole five year term as at the time of opening or changes with change in interest rates declared for every quarter.

    Reply
      • My father has an account in post office rd deposit. But father is died before expiry of that account. But that account has defallt to pay amount. My father paid only three instalment.account opened on 20th february 2017.amount paid as instalment of rs. 500 in three instalment. My father is passed away on 22nd march 2019.so only paid three instalment. I’m nominee of that account.Because what is the procedures to withdrew that account after three years of maturity period?? Is Any amount is charged in this account before expiry of period?? What are details required to withdrew that account? Which rate of interest is get in that account?

        Reply
  74. Hi, Basvarajjee

    I m staying in Mumbai and having Recurring Deposit Matured this month at Surat. My agent is forcing me to come to Surat Post office nd sign docs and receive cheque, he says I have to present there personally, is it so?

    Reply
      • I am also facing same issue? is it possible to send a signed RD withdrawal form to a relative and submit it to the post office? So that the amount could be transfer to my postal account?

        Reply
        • Dear Rinsha,
          It all depends on how they understand the severity. Hard to predict their mind and so-called their rigid rules.

          Reply
  75. Sir ibhave a query that in 2013 i opened rd with 5000 monthly deposit for 60 months and maturity is 2018 February. I deposited total 300000 for 60 months now when my rd is matured on February 2018 the total amount i am getting is 330083. How can it be possible. When i asked the post master regarding this they told that the system is showing this only. Please help me what i can do to get the right interest amount.

    Reply
      • Sir i checked i have paid for full five years.

        Reply
        • Sir i contacted post master he told that your date of maturity was 04.02.2018 sunday and I closed my recurring deposit on 03.02.2018. So i got interest as per saving account 4% nearly. So he told to give a letter about all this. And then he will pass on to senior superintendent and will see what happens.. Sir will i get my additional interest. I closed on 3rd feb by mistake not knowing that one day preclosure will cost me this much..

          Reply
          • Harsh-ONLY GOD CAN PROTECT POST OFFICE CUSTOMERS. Let us see what they say.

            Reply
          • did you receive your amount?

            Reply
  76. I’m complete my post office rd scheme account in 2016

    But still I am not withdraw my Rd amount
    When I swift my home I am miss my Rd passbook and account number also

    Then now what can I do
    How to find my account number

    Reply
  77. Hi, I have a RD account which has been matured, but now I am staying outside India. How can I close the RD account? Can I send an Email or Fax or should I physically sign? Once its closed it will be deposited to SB at post office? How to transfer to some other bank account?

    Reply
    • Sindhu-You have to submit physical forms for closure and amount will be deposited in your Post Office Savings Account.

      Reply
  78. Sir ,I want to open post office RD @ Rs.5700 per month.if i pay 12 month rd amount (rs.68400/-)in advance then how much amount as a rebate I will get in one year?sir I have gone through your page regarding RD but I am not clear sir.plz explain.thanks

    Reply
      • Kindly give reply to at least one person sir….
        I m also wating for reply of same question.

        You allways reply same thing

        Reply
  79. I want to open an rd account of my 8 mnth old son
    M confused with the documentation.
    What all documents would be required.?

    Reply
  80. If one will not be able to pay suppose after 6 months , then will the person get something or total amount will be forfeited

    Reply
    • Sabyasachi-Refer above post properly. I explained your doubt in detail.

      Reply
  81. For Opening RD account Jointly, both applicant require to present in post office ?

    We are submitting all required document and First applicant is present. 2nd applicant is out of station but provided all document with signature

    Reply
  82. If I make an account in a certain post office…
    Can I deposit the money in any other branch of post office…?

    Reply
      • So, If I make my RD account in Jamshedpur…
        I’ll be able to do deposits in any post office in Bhubaneswar…
        Right…??

        Reply
          • Thanx for simultaneous replies…
            How do we know whether a post office is connected with core banking or not..?
            Bcoz while fetching details of nearby post offices on the official website… There was a column for ‘Service’ and I couldn’t find ‘RD Account’ in it…
            So will I have to physically go and ask to the concerned Post Office for this…?

            Reply
            • Nikhil-They hardly update their portal. Hence, it is always best to go physically and confirm the same.

              Reply
              • Thanxx for the Replies and clearing out my Doubts…
                Thumbs up for the Information…!!

                Reply
  83. Hi,
    When the RD amount matures after a 5 year tenure, the matured amount will be deposited to Post Office savings account? If so, can withdraw the amount next day itself?
    Thanks in advance,

    Reply
  84. Dear Mr. Basavaraj jee .
    I Opened Postal Recurring Deposit for Rs.3600 per annum for five years in Jan 2015 through agent.
    The installments are paid before the due dates to the agent.the RD Pass Book is not updated by the agent instantly
    soon after the payment is made.I doubt the integrity of the agent.
    In this regard I seek your clarification whether any provision is there for online payment?. Is there any
    means to verify the account status online. Kindly clarify.

    Reply
    • Rao-I don’t think Post Office provides online facility. Hence, better to complain against agent or pay offline on your own.

      Reply
  85. Is it compulsory that the maturity proceeds of a matured RD is to be deposited in SB account with post office cant itbe credited to any SB account maintained with any bank.

    If I do not have any savings bank account with post office then am i bound to open anew SB account with post office

    Pl clarify

    Yasaswee Vuppla

    Reply
    • Yasawee-I think they will credit to the savings account managed in Post Office ONLY. Not sure, but check with them.

      Reply
  86. What is the procedure of payment after maturity of RD?

    Reply
  87. Good morning sir,

    I am seenevasa from chennai, am 22 years old. I want to open RD in Post office for 2 years. Is there any option for deposit the money from other bank account through online for 2 years.

    Reply
      • THANK YOU SIR.

        Reply
  88. How to calculate penalty for Rd accounts please give information with examples

    Reply
    • Sukanya-I explained in detail in simple language. Please calculate for your own case.

      Reply
  89. Hi sir I had opened an account in the year 2014 in October with an amount of 1000 rs .. my agent tells me that I can with this amount next month since it completes 3 years and the Amount I will receive will be 44 000 with an interest of 4% just wanted to confirm is d calculation correct nd how much will I get after 5 years plshelp

    Reply
    • Carolinecallaghan-It is hard for me to calculate for each individual. Better you contact the concerned Post Office staff.

      Reply
  90. I have a rd of rs ten thousand per month.
    If I paid 12 month instalment in advance
    How much rebate on this

    Reply
      • Agent tell me another story every time… so kindly guide me

        Reply
        • My RD of 10000 was going to mature 28 may 2019 but my mistake by the officials it was pre matured closed on 25 may without even notifying me…the loss of interest is of 90000..what can I do ahead,?

          Reply
          • Dear Abhay,
            No need to keep quiet. Raise a complaint against the concerned person.

            Reply
  91. Hi, I started a Rd ac on 8/8/2012 for rs 1500 per month, continued till Dec, 2015 but after that I had to leave the city for some work when I came back they said Ur account is discontinued. I waited till maturity n filled the same..but I received only 61500/- whereas 60000/- was my contribution how is this possible????

    Reply
    • Mohan-I am not sure about the interest rate and all of that time. Better you interact with the Postal Staff.

      Reply
  92. I have opened RD account for 1000 rupees from June’17. I talked with the agent through i opened the account regarding the rebate but he told about 200 for 6000 rupees and 500 for 12000 rupees. I want you to please clarify this to me that i want to deposit 6 months advance i.e. 6000 rupees than how much amount will be rebated to me.

    Regards,

    Reply
    • Shubham-As per the above-shared post, you can avail the rebate of Rs.600 by depositing Rs.6,000 in advance.

      Reply
      • Thank you sir…

        Reply
  93. Respected Sir, I am Jayanta Mandal.I opened a Recurring Deposit 25/10/20014 ,i deposited money last 28/10/2016.Now it is discontinued account but I want to deposit money in my account.what can I do for this?if there is no option for deposit , please tell me how can I withdraw my money and how much money i will get? I deposited monthly ?500.please quickly answer.

    Reply
  94. sir, i opend RD account 2014 May iam extend another 6 to 10 (5 years) period how much amount i will receive now iam monthly invest Rs.1500/- plz.give details different terms

    Reply
    • Suri-It depends on the interest rate at which you started. Contact the concerned post office.

      Reply
  95. sir, my rd is falling for maturity this month and i would like to extent for further five years, kindly let me know the maturity amount at the end of tenth year.

    regards,

    Reply
    • Vinay-Without knowing any details, how can I say your maturity amount? Check with Post Officials for the same.

      Reply
  96. Can i extend the RD account by an year and get 7.3% interest as of today?

    Reply
    • Anuj-You are not allowed to extend the account just for a year. Read the above post properly for the extension rules.

      Reply
  97. please help me i want to withdraw 50 % of my total payment of rd but i am in other city far from my native place do i have to go to my branch only for withdrawal or i can get it done where i am staying now?

    Reply
  98. hi
    I opened RD in Kanykumari Post Office that RD is Matured.Now I am in chennai .I applied for transfer the RD March 12 2017.today date is 18 April 2017 still that RD is not transfer.how to track my RD postion or any complaint is required for that.please give me a nice advice

    Reply
    • Sudhan-There is no online tracking tool. Hence, better you be in touch with Chennai branch.

      Reply
  99. but my Post Agent says that I will get the same interest rate on which date I have 0pened Rd Account and I Will get 8.50% again when I extend this Rd for another 5 years please clear my doubt

    Reply
    • Nitesh-When you extend it then the prevailing interest will be applicable of that time.

      Reply
  100. Very Nice Information . Keep Up the good Work and all the best !!

    Reply
  101. Thanks for the reference.

    Reply
  102. Thanks for your quick response. Can you tell what is the present interest rate?

    R K Bhuwalka

    Reply
    • Dear sir,
      I have a matured rd account in post office .I want to know how much time needed to withdraw the money from post office .Bcz my agent collected all the necessary documents from me and saying 1 month .Is it right .wt is the exact time and procedures for withdrawal.hope for the reply
      Thanks
      Dinesh

      Reply
      • Dear Dinesh,
        It should be immediately. Who will give the interest for that one month DELAY?

        Reply
  103. Dear Basavaraj

    Your article ‘All about Post Office Recurring Deposit (RD) Account Scheme’ has been elaborated very clearly in detail but you forgot to write on ‘Interest Payable of RD’. Please clarify?

    Thanks

    RK Bhuwalka

    Reply
    • Bhuwalka-I not forgot that. But I mentioned how the interest rate will change frequently (on quarterly basis). Hence, not mentioned the interest rate.

      Reply
  104. can I extend rd for another five years and will I get 8.40 % interest rate or new present interest

    Reply
    • Nitesh-You can extend but rate of interest will be the rate applicable at the time of renewal.

      Reply
  105. you are correct.

    I opened sukanya samridhi scheme and whenever I try to go for making my deposit they claim the server is down.

    The person is on leave. They irritate us.

    Government needs to take enough action so that our Central Government employees value customers.

    We are not treated as valuable customers like a private bank.

    Now I saw you post on transferring account to Banks this is very helpful to avoid wasting time in roaming around PO.

    The pity point is this issue is in Chennai GPO they claim best serviced branch.

    Reply
    • Dear Sir, I had withdrawn RS. 50000 from my RD account if I don’t deposit the above amount whether I get RD interest on remaining amount or not. Please suggest. Thanks.

      Reply
      • Dear Rajinder,
        Yes, you will get the interest on the remaining amount.

        Reply
      • Hi sir I had a RD with post office and have paid only 3months installments and it’s still not withdrawn can I restart
        means continue the same RD with same iinterest rate.

        Reply
      • Sir I opened a rd account but I cannot able to pay the amount further. Is there any way to close the account and get the money from the post office

        Reply

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