Post Office Recurring Deposit of 5 years provides 7.4% interest rates and it is compounded every quarter. Such saving scheme gives the highest returns compared to bank RD rates. This scheme offers complete security of investments along with attractive returns. Due to their implementation through the post office, they can be run at the places which are geographically difficult to access. In this article, I would provide complete details about 5 Years Post Office Recurring Deposit Scheme. Who can invest in this Post Office Recurring Deposit scheme?
About Post Office Recurring Deposit Scheme
Post office gives the facility to its customers to open a 5 year recurring deposit account in order to add to their savings by investing money which earns interest over a fixed period of time. The deposits have to be made at predetermined intervals which may be monthly, quarterly depending on the terms and conditions of the deposit scheme. This recurring deposit scheme from India Post is an ideal investment for those who cannot invest lump sum money, but does earn handsome interest at the end of the maturity period.
Also Read: Latest Post Office Interest Rates in 2016
Features of the Post Office Recurring Deposit Account
The following are the key features of the India Post Recurring Deposit Account.
- The account is opened for 5 years and can be extended for another 5 years on year to year basis.
- The minimum amount by which the account can be opened is ₹. 10 per month. There is no upper limit to the maximum amount that can be deposited. The deposit needs to be in the multiples of ₹5.
- Any number of accounts can be opened in any post office.
- Accounts can be transferred from one post office to another.
- Nomination facility is available at the time of opening and also after opening the account.