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Post Office RD: Best investment option for low income people, loan facility is also available

Recurring Deposit (RD) is known as a safe investment option. It is a very popular investment option among middle and low income group people. According to the website of India Post, for the quarter April to June, interest is being provided on Post Office RD at the rate of 5.8 per cent per annum.

Interest received from RD is fully taxable. The special thing is that the interest rate in RD is compounded quarterly. In RD people can deposit a fixed amount regularly and earn interest income. Post Office RD comes with a tenure of five years.

The account can be opened in this scheme with a minimum amount of Rs 100 per month or in multiples of Rs 10. However, there is no limit on the maximum amount. Explain that Post Office RD is a government backed scheme.


Single adult, joint account (up to 3 adults), a guardian on behalf of a minor, a minor above 10 years of age in his own name and a guardian account on behalf of a mentally ill person can be opened in Post Office RD. Let us tell here that any number of accounts can be opened in this scheme.


In this scheme, the account can be opened with both cash or cheque. In this scheme, a minimum amount of Rs.100 per month and above in multiples of Rs.10 can be deposited. If the account is opened in the first 15 days of the month, then you have to deposit Rs. At the same time, if the account is opened after the first 15 days of the month, then before the last date of the month, Rs.


RD account can be closed before maturity after three years of account opening. Post Office Savings Account interest will be payable in case the account is closed before maturity.


Loan facility is also available in Post Office RD scheme. This loan facility is available after depositing 12 installments. Loan can be taken up to 50% of the amount deposited in the account. The loan can be repaid in lump sum or in equated monthly installments. The interest rate on the loan will be 2 percent + the interest rate on RD. Interest will be calculated on the period from the date of withdrawal to the date of repayment. If the loan is not repaid till maturity, the loan + interest will be deducted from the maturity value of the RD account. Loan can be taken by submitting the loan application form along with the passbook at the respective post office.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @
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