Post Office Recurring Deposit (PO-RD): Overview

The post office recurring deposit (PO-RD) account is a systematic way of saving money. The scheme is meant for those investors who want to deposit a fixed amount regularly on a monthly basis and get a tidy sum on maturity after the stipulated 5 years.

The recurring deposit account can be opened at any post office. The investor makes sixty equal monthly deposits. The minimum monthly deposit has to be Rs. 10, higher deposits increasing in multiples of Rs. 5.
The investor can close the account prematurely after 3 years. At closure, the investor is entitled to the interest rate applicable to post office savings accounts.

PO-RD: Basics

What is a post office recurring deposit account (RDA)?

A post office recurring deposit account (PORDA) is a systematic savings instrument where the investor deposits a fixed amount periodically to earn returns and a good sum on maturity. ......

Who can open a post office recurring deposit account (RDA)?

A single person or two individuals jointly can open a post office RDA. A guardian can open an account on behalf of the minor who is at least 10 years old, in the minor's name. ......

How does one deposit money in a post office recurring deposit account (RDA)?

The deposit into this account can be made in person at the post office of deposit every month. ......

PO-RD: Opinion

Is there a lower and an upper limit of investment in recurring deposit account (RDA)?

The minimum amount to be invested in a post-office RDA is Rs 10 and then in multiples of Rs. 5 for a period of 5 years. There is no prescribed upper limit. ......

What are the returns on the post office recurring deposit account (RDA)?

The post-office recurring deposit offers a fixed rate of interest, currently at 7.5 per cent per annum compounded quarterly. ......

Do I have to invest in a post office recurring deposit account (RDA) at one go? How many such installments can be made?

You can make deposits, of up to 60 installments into the account. ......

PO-RD: FAQs

What happens in case of default on installment of a post office recurring deposit account (RDA)?

In event of defaults being more than five, the account will be treated as discontinued. ......

What benefits does one get on maturity of the post office recurring deposit account (RDA)?

Read to know the benefits on maturity of the post office recurring deposit account (RDA). ......

Can one withdraw funds deposited in the post office recurring deposit account (RDA)?

Read to know whether one withdraw funds deposited in the post office recurring deposit account (RDA). ......

Decision-making Corner