Post Office Recurring Deposit Scheme

Post Office Recurring Deposit Scheme (RD)

Duration: P. O. Recurring Deposit has an investment period of 5 years.

Mode of Investment: Single, Joint (Two or more), Minor with parent/guardian.

Investment: Amount repayable for an account of Rs. 10 denomination

Rs. 728.90 after 5 years.  Min Amount  Rs. 10/-   Max Amount     No Limit
Denominations   Rs. 5/-

Returns: P. O. Monthly Income Scheme provides an interest rate of  7.5% per quarter.

Advantages:

·         Facility is there at the time of opening the account or anytime during the tenure of the account.

·         Is permitted if deposit is more than one year old. The interest rate applicable will be that which is prevailing at that time.

·         The certificate is to be discharged at the back.

·         A pass book is issued at the time of opening the account. If there is a loss, theft or the passbook is mutilated, a duplicate is issued on a charge.

 
Tax benefits can be availed under section 80L. No Tax benefits are provided under section 88