Post Office RD holders should not make this mistake or else the interest rate will be reduced by 2.7%, know the details
If you have started RD in the post office, then do not make this mistake, otherwise you will suffer a huge loss. The interest on RD will be reduced by 2.7%. Know about this here.
Post Office RD : RD is like a piggy bank. In this scheme, a fixed amount has to be deposited every month. After maturity, you get the entire amount back along with interest. This scheme is good for those who do not want to take any kind of risk on their investment and want to collect money from small savings. You get the option of Recurring Deposit at both banks and post offices.
The tenure of RD in a bank is from 1 year to 10 years, you can choose the tenure according to your convenience. But the tenure of post office RD is 5 years. However, the interest rate on this is good, so you can accumulate a good amount of funds in 5 years. Currently, 6.7 percent interest is being given on post office RD. If you have started this RD, then do not make a mistake, otherwise you will incur a huge loss. The interest rate on RD will be reduced directly by 2.7%.
This mistake will cause loss
If you have invested in a 5-year RD, then do not make the mistake of breaking it before maturity. If you close the RD pre-maturely, then the interest rate on the RD will directly decrease by 2.7%. In such a situation, interest will be given equal to that of a post office savings account. Currently, 4% interest is being given on post office savings account. Then you will get a return of 4% interest, not 6.7%.
When can you get pre-mature closure done?
According to the rules, the post office RD account matures after 5 years, but if needed, you can close it midway after three years from the date of opening the account. But if you close this account even a day before the maturity period, then you are given interest equal to that of a post office savings account. Keep in mind that permission to close the account before time is not given till the advance deposit period.
Facility of extension also
If you want to continue your RD account even after five years, then you can get the account extended. For this you will have to give an application in the post office. But the same interest rate will be given on your extended RD account which was given at the time of opening it. The extended account can be closed anytime. But on closing it, for full years, RD interest rate will be applicable and for a period of less than one year, post office savings account interest rate will be applicable. Therefore, try to close the extended account only after completion of one, two, three etc. years after maturity.
Who can open an RD account
Any person who is 18 years of age can open an RD account for himself in the post office. At the same time, this account can be opened in the name of the child by his guardian. If the child is above 10 years of age and can sign a document properly, he can open a Post Office RD account in his own name. Apart from this, two or three people can also open a joint RD account for themselves.
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