India Post’s recurring deposit account is a safe investment option. Check how
The India Post Office, which is known across the country for its safe investment schemes, has a facility called the National Savings Recurring Deposit Account, which is as good as any savings account or fixed deposits—the two most preferred choices of investment by people.
The recurring deposit account was introduced by the Union government back in 2019 to provide small investors with the means to invest small amounts regularly to help them meet their future needs, according to a report by ClearTax.
Under this scheme, investors have to deposit a minimum account of just ₹100 to open their account. The maturity of this scheme is five years.
Here are more features about the National Savings Recurring Deposit Account:
> The current interest rate in this account is 5.8 per cent per annum (quarterly compounded). This rate has been effective since April 1, 2020.
> For example, if customers invest ₹10,000 every month at the above interest rate, then their investment along with the interest will increase to ₹16 lakh in 10 years. But to have this benefit, investment has to be made every month
> Customers can open their account by making the first deposit either by cash or cheque.
> Account holders are allowed to have a nominee, who at the time of death of the account holder, can submit a claim at the concerned post office to get the eligible balance of such recurring deposit accounts.
> The account will mature after five years from the date of opening.
> According to the India Post’s website, the account can be extended for a further five years by giving an application at the concerned post office. The interest rate applicable during extension will be the interest rate at which the account was originally opened.
> The account can be closed prematurely after 3 years from the date of account opening by submitting a prescribed application form at the concerned post office.