Many people prioritize investing their money safely and securely. One of the most reliable options is the Post Office Recurring Deposit (RD) Account under the Post Office Saving Scheme. This scheme offers a secure investment with a good return, making it ideal for risk-averse investors.
Why Choose the Post Office Recurring Deposit Account?
- Guaranteed Security: The Post Office RD scheme is a government-backed savings plan that ensures your investment is safe.
- Flexible Investment Options: You can start with as little as ₹100, and there is no upper limit on the amount you can invest.
- Consistent Returns: Currently, the interest rate is 5.8%, compounded quarterly, offering a reliable return on your investment.
Eligibility Criteria for Opening a Post Office RD Account
To open a Post Office RD account, you must meet the following criteria:
- Must be an Indian national aged 18 or above.
- Minors above ten years can open an account with a guardian.
- The same individual can open multiple RD accounts.
How to Open a Post Office RD Account Online
Opening a Post Office RD account online is a straightforward process. Here’s how you can do it:
- Post Office Internet Banking or Mobile Banking:
- Log in to your Post Office Mobile Banking App.
- Select “Open Recurring Deposit Account” under the Requests section.
- Enter the desired RD amount and choose the debit account.
- Confirm the details and submit the request using your transaction password.
- Through Post Office RD Agent:
- Contact a Post Office RD Agent to assist with opening an online account.
- Post Office Counter:
- Visit the nearest Post Office and fill out the RD account opening form.
| Name of the Account | Post Office RD Account |
|---|---|
| Website | https://www.indiapost.gov.in/ |
RD Passbook and Nomination
Once your online RD account is open, a passbook is optional. You can obtain one from any CBS post office by providing your account number. The online process currently does not support nominations, which must be done in person at the Post Office.
Auto Debit Facility
You can set up an auto-debit facility from your Post Office Savings Account for hassle-free monthly deposits. This option is available for both online and offline accounts.
Taxation on Post Office RD Account
While the principal amount invested in a Post Office RD account is exempt from tax under Section 80C of the Income Tax Act, the interest earned is taxable. If the interest exceeds ₹10,000 in a financial year, a TDS of 10% (or 20% if no PAN is provided) will be deducted.
How to Deposit RD from a Bank Account
Even if your funds are in a different bank, you can quickly transfer them to your Post Office RD account. You’ll need an IPPB Savings Account linked to your POSB Account. Transfer the money to the IPPB account and then to your Post Office Savings Account, where you can complete the RD deposit process.
The Post Office RD Account is a robust and secure investment option, perfect for those seeking a low-risk way to save. With the convenience of online banking, opening and managing your RD account has never been easier.