The 5-year Post Office Recurring Deposit (PORD) scheme, alternatively called the National Savings Recurring Deposit, enables individuals to systematically save over a span of 5 years through monthly contributions, totaling 60 installments. Interest accrues on these deposits at a compounded quarterly rate. This scheme is tailored for individuals with steady incomes aiming to accumulate savings by committing to fixed monthly deposits over a specific duration.
The Post Office Recurring Deposit (RD) Scheme offers various features and benefits to account holders. Here are some key characteristics of the scheme:
1. Minimum Installment: The minimum amount required to open the RD account is Rs. 100. Deposits can be made in multiples of Rs. 10, with higher denominations also available.
2. No Maximum Limit on Deposit Amount: There is no maximum limit on the amount that can be deposited in the RD account. This means that individuals can save and accumulate a higher amount over time.
3. Deposits: Deposits can be made in cash or cheque. In case of cheque, the date of deposit shall be considered as the date of clearance of cheque.
4. Nomination Facility: The account holder can nominate a beneficiary to receive the deposit amount in case of the account holder’s demise.
5. Rebate: An incentive is provided to those who make advance payments of 6 or more RD installments. A rebate of Rs. 10 per installment is available for 6 months, while a higher rebate of Rs. 40 per installment is available for 12 months.
6. Operation: The RD account can be operated either singly or jointly (up to 3 adults).
7. Interest Compounding: Interest on the RD account is compounded quarterly, resulting in higher earnings over time.
8. Default Fees: Default fees will be imposed for missed deposits. A default fee of Rs. 1 will be charged for a Rs. 100 denomination account, and this amount will be proportionate for other denominations.
9. Premature Closure: Premature closure is allowed after three years, subject to certain conditions.
10. Transferability: The RD account can be transferred from one post office to another, making it convenient for the account holder to manage his/her investments.
11. Loan Facility: A loan facility of up to 50% of the balance credit in the account is available after 12 installments are deposited and the account has been continued for 1 year.
Check out how to open a Post Office Recurring Deposit Account Online
To initiate the opening of a Post Office Recurring Deposit Account online, you must already have a Post Office Savings Account and be enrolled in Indian Post Office internet banking services. Below are the steps to follow:
- Visit the Indian Post eBanking website.
- Enter your registered “User ID” and captcha code, then click “Log In.”
- Navigate to the “Service Request” option under the General Services tab.
- Follow the on-screen prompts to submit your request for opening a Post Office Recurring Deposit Account.”