Amid the nationwide lockdown, the government has been taking several measures to give some relief in rural areas and lessen the pain of farmers, workers and poor. Recently, the post office is offering several schemes where farmers can invest a very small amount of money which will result in a big way. Moreover, there are many options for Small Saving Schemes in the Post Office and you need to choose the best one to invest your money. Here, we will discuss the schemes where farmers can invest their money and get the utmost benefit out of it.
What is Post office Recurring Deposit?
Recurring Deposit account is a small instalment deposit, good interest rate and government-guaranteed scheme. The account of recording deposit is opened for five years in the post office. Although banks provide RD account facility for six months, a year, two years, three years etc. In this, the interested calculus on the money deposited is every quarter (at the annual rate) and it is added to your account (including compound interest) at the end of every quarter.
What’s the Interest of Post Office Recurring Deposit?
According to India Post's website, 5.8 per cent interest is currently being received on the RD scheme. This new rate is applicable from 1 April 2020. The Government of India announces the interest rate of all its small savings schemes every quarter.
Can invest minimum Rs 100
In this RD scheme, you can invest a minimum of Rs 100 a month. You can deposit any amount in multiples of 10 more than this. There is no limit on the maximum deposit amount. Any amount in ten multiple can be deposited in RD account.
How to Open RD account?
Any person can open as many RD accounts as his name. There is no restriction on the maximum number of accounts. Yes, be aware that the account can only be opened in person, not in the name of the family (HUF) or institution. Two adult persons can also open a joint RD account together. An already opened personal RD account can be converted into a joint account at any time. Conversely, an already open joint RD account can also be converted into a personal RD account at any time.
When Can the RD account be Closed?
If you do not deposit the RD instalment by the due date, then with the late instalment you will have to pay a penalty of one per cent every month separately. Also, if four consecutive instalments were not deposited, the account will be closed. However, even after the closure of the account, it can be activated again for the next two months. Yes, for this, you have to apply to the home post office and deposit the previous instalment and penalty amount with the new instalment.
