Recurring Deposit Account

Recurring Deposit Account

 

v Any individual (a single adult or two adults jointly) can open an account.

v Advance Deposits earn rebate.

v Four defaults are allowed.

v Rate of interest 8.30% 

v Maturity value of a 5 Years RD account opened on or after 1.4.2013 with monthly deposit of INR.10/- shall be INR.744.53.

v Defaults can be paid within two months.

v Part withdrawal facility available.

v Premature closure allowed after three years.

v Pay Roll Savings Scheme is also available for employees of various Establishments.

v Type of Account	v Minimum Deposit	v Maximum Deposit
v Individual Account	v INR. 10/- and in multiples of INR. 5/- thereafter	v No limit.

 

v From 1.4.2013, interest rates are as follows:-

v 8.3% per annum (quarterly compounded)

v On maturity INR 10/- account fetches INR 744.53. Can be continued for another 5 years on year to year basis.

·            Account can be opened by cash/cheque and in case of cheque the date of deposit shall be date of presentation of cheque.

·            Nomination facility is available at the time of opening and also after opening of account.

·            Account can be transferred from one post office to another.

·            Any number of accounts can be opened in any post office.

·            Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.

·            Joint account can be opened by two adults.

·            Subsequent deposit can be made up to 15^th day of next month if account is opened up to 15^th of a calendar month and up to last working day of next month if account is opened between 16^th day and last working day of a calendar month.

·            If subsequent deposit is not made up to the prescribed day, a default fee is charged for each default. After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within this period, no further deposit can be made.

·            There is rebate on advance deposit of at least 6 installments.

·            Single account can be converted into Joint and Vice Versa.

·            Minor after attaining majority has to apply for conversion of the account in his name.

·            One withdrawal upto 50% of the balance allowed after one year.

v Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions.