RD: This scheme of Post Office is beneficial for small savings, you can get millions of rupees in returns.
new Delhi. Investment is the right place for a safe future. If you do not have much money to invest, but you want good returns, then you can try the recurring deposit of the post office. In this scheme that exists for 5 to 10 years, you can become a millionaire. Currently, 5.8% interest is being paid under the scheme. This interest is annual, but it also carries compound interest every quarter. In this case, you will get more benefit. So what is the scheme and how to open an account, learn the process.
What is RD Scheme
Under the post office recurring deposit scheme, you can invest with small amount. It gets better interest. Also, it is a government guaranteed scheme. This account is opened for at least five years. However, RD can be opened in banks for six months, a year, two years or three years etc.
Benefits of the scheme
1.In the recurring deposit scheme you get income tax exemption.
2. You can open RD account in single or joint. If you are opening an RD account in the name of the child, then in case the child is a child, it is possible to transfer the account to his / her name. Before this, parents take responsibility for the account.
3. The maturity of RD is 5 years, but you can get it further if you want.
4. If you want to withdraw RD money in emergency, you can get it broken before the maturity period. However, you will be able to do this only when the RD account is 3 years old.
5.RD account can be transferred to any post office in the country at any time.
Account can be closed if you do not pay the installment
If you do not deposit the RD installment by the due date, then with late installment you will have to pay a penalty at the rate of one percent every month. If the installment is not deposited continuously for four months, the account will be closed. However, even after the account is closed, it can be activated again for the next two months.