Post Office RD Scheme 2024: Interest Rate Calculator, Eligibility and Features

People who are looking for investment plans can apply for the post office RD scheme 2024 because it is one of the most secure schemes which is presented by the Indian government and the Indian government will provide proper opportunities related to investment plans to the people who are otherwise not able to apply for any investment plans because of the large deposit that they need to make as a principal amount. You can check out the details related to the Post Office RD Scheme 2024 from the article provided below and we will also provide with you all the details related to the interest rate and the eligibility criteria that you need to follow to be a part of their prestigious scheme. 

Post Office RD Scheme
Post Office RD Scheme

About Post Office RD Scheme 2024

If you are a permanent resident of India and you want to apply for different types of investment schemes in India then you can apply for the Post Office RD Scheme which is created by the post office authorities to provide proper opportunities related to the beneficiaries. There are a lot of financial services which will be provided to the people who have applied for the post office recurring deposit scheme because this scheme is automatically presented by the Indian Government and the Indian government will provide you with proper security so that you can get benefits related to old age. A long-term investment scheme is provided through the development of this recurring deposit account which you can open in your nearest post office and then you can also withdraw the amount if you have an emergency in this scheme. 

Also Read: Post Office Saving Scheme

Features Of Post Office RD Scheme

The applicants can check out the details related to the deposits available in this prestigious scheme from the details mentioned below:-

  • The account can open by cash/cheque and in the case of the cheque, the date of deposit shall be the date of clearance of the cheque.
  • The minimum amount for a monthly deposit is Rs. 100 and above the minimum, in multiple of Rs. 10.
  • Subsequent deposits shall be made up to the 15th day of the month if an account is opened up to the 15th of a calendar month.
  • Subsequent deposits shall be made up to the last working day of the month if an account is opened between the 16th day and the last working day of a calendar month.
  • Minimum INR 100/- per month or any amount in multiples of INR 10/-. No maximum limit.
  • If a subsequent deposit is not made up to the prescribed day for a month, a default is charged for each defaulted month, default @ 1 rupee shall be charged for a 100 rupee denomination account (proportionate amount for other denominations) shall be charged.
  • If in any RD account, there is a monthly default, the depositor has to first pay the defaulted monthly deposit with the default fee and then pay the current month’s deposit.
  • After 4 regular defaults, the account becomes discontinued and can revive within two months from the 4th default but if the account is not revived within this period, no further deposit can be made in such account and the account becomes discontinued.
  • If there are not more than four defaults in monthly deposits, the account holder may, at his option, extend the maturity period of the account by as many months as the number of defaults and deposit the defaulted installments during the extended period.

India Post Office RD Advance Deposit

You can check out the details related to the advance deposits available in this scheme from the pointers given below:-

  • (i) If an RD account is not discontinued can make an advance deposit up to 5 years in an account.
  • (ii) Rebate on advance deposit of at least 6 installments (inclusive of the month of deposit), for Rs. 100 denomination rebate Rs. 10 for 6 months, Rs. 40 for 12 months
  • (iii) The advance deposit may make at the time of opening of the account or any time thereafter.

Interest Rates 

The applicants can check out the details relates to the interest rate which will be available in this prestigious scheme from the pointers below:-

  • RD Account can be opened in any post office pan India. Candidates can also avail benefits of recurring deposit schemes in banks. Central govt. has permitted RD account opening in various Nationalized banks like SBI, HDFC, and Canara Bank to ensure higher reach and easy accessibility. Candidates can open this account in cash or through a cheque.
  • RD Interest Rate 2024 is 5.8% per annum (compound quarterly) with effect from 1 October 2022. The interest earn can be calculated using the Post Office RD Calculator. RD Account offers a sovereign guarantee, capital protection and quarterly interest payment which acts as a source of income. This investment is secure as well as this investment has attractive interests.

Tax Benefits

The following tax benefits will be provided to the people who are applying for this prestigious scheme:-

  • In the case of a Lump Sum Amount, a Fixed Deposit (FD) is preferred and in case the person can save a defined amount from income every month, a Recurring Deposit (RD) is preferred. Subscribers have the option to withdraw the earned interest or to reinvest it. However, TDS @10% is liable to deduct for both options under 194A of the IT Act if the earned interest is more than Rs. 10,000 per annum. Moreover, Income tax on earned interest is calculated as per After 12 installments are deposits and the account continues for 1 year not discontinued depositor may avail loan facility of up to 50% of the balance credit in the account.
  • Loans can be repaid in one lump sum or in equal monthly installments.
  • Interest on the loan will be applicable as a 2% + RD interest rate applicable to the RD account.
  • Interest will calculate from the date of withdrawal to the date of repayment.
  • In case the loan is not repaid till maturity, the loan plus interest will deduct from the maturity value of the RD account.

Premature Closure of RD Account in Post Office

The following benefits will be provided to the people who are applying for the premature closure of their RD account:-

  • (i) RD Account can close prematurely after 3 years from the date of account opening by submitting the prescribed application form at the concerned Post Office.
  • (ii) PO Savings Account interest rate will be applicable if the account is closed prematurely even one day before maturity.
  • (iii) No premature closure of the account shall be permissible until the period for which the advance deposits have been made.

Recurring Deposit (RD) Account Maturity Period

The official account will mature by the concerned authorities by taking into consideration the following rules and regulations:-

  • 5 years (60 monthly deposits) from the date of opening.
  • The account can extend for further 5 years by giving an application at the concerned Post Office. The interest rate applicable during the extension will be the interest rate at which the account was originally opened.
  • The extended account can be closed at any time during the period of extension. For completed years, the RD interest rate will be applicable and for periods less than a year, the PO Savings Account interest rate will be applicable.
  • RD account can retain up to 5 years from the date of maturity without deposit also.

Death Benefits 

The following benefits will be provided to the nominees and the beneficiaries in the case of the death of the candidate:-

  • (i) On the death of the account holder nominee/claimant can submit a claim at the concerned Post Office to get the eligible balance of such RD account.
  • (ii) After sanctioning of claim, the Nominee/legal heirs can continue RD account till maturity by submitting an application at the concerned Post Office.
Eligibility Criteria  

The following people can open an account in the post office RD scheme 2022:-

  • A single adult
  • Joint Account (up to 3 adults) (Joint A or Joint B)
  • A guardian on behalf of a minor
  • A guardian on behalf of a person of unsound mind
  • A minor above 10 years in his own name.
Documents Required

The following documents are required in order to successfully open an account in the post office department:-

  • A post office account opening form 
  • Passport size photographs
  • Address and identity proofs including your Aadhar card
  • Details related to the nominee

Also Read: SBI Utsav Fixed Deposit Scheme

Post Office RD Scheme 2024 Application Process

In order to apply for this scheme you will have to follow the simple procedure given below:-

  • You will first have to visit your nearest post office and then you will have to ask for the application form for the post office RD account.
  • You have to fill out the application form and submit the application form to the concern authorities by attaching all of the documents which are mention above.
  • The applicant will have to submit the original documents in order to go through the verification procedure.
  • You have to collect the signatures of your witnesses and the beneficiaries and then you will be eligible to get the details related to this prestigious scheme presented by the post office department.

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