Whoever said wishes don’t come true hasn’t explored our offers!
  • Difference Between LIC and Post Office Recurring Deposit

    A Recurring Deposit is a financial instrument through which individuals can deposit a fixed amount of money every month for a fixed period of time. The money deposited would accrue interest over the time period of the deposit, and the interest would be payable over a monthly, annual or end of maturity basis.

    A Recurring Deposit or RD, as it is commonly known as, is a good alternative for those who do not have a large amount of capital to invest in a Fixed Deposit. As compared to a Fixed Deposit, which requires a one-time deposit of a sum not less than Rs. 10, 000, RD allows for a minimum deposit of Rs. 500, with each subsequent deposit made to be in multiples of 100.

    In this way, an RD allows for individuals to be able to budget as well as save for the future. A Recurring Deposit also pays out the same rate of interest as a Fixed Deposit, depending on the tenure of the deposit.

    An RD can be for tenures ranging from 6 months to a maximum of 10 years.

    The LIC or Life Insurance Corporation of India is a company that was instituted in the year 1956 with the aim of providing life insurance policies to the Indian people. The company is now the largest provider of life insurance in India, with assets worth over $ 230 billion.

    The Post Office, also known as India Post, was set up in the year 1774 by the British Empire. With a network spanning the length and breadth of the country, the Post Office runs services that include letters, parcels as well as financial services like the Public Provident Fund, life insurance and savings accounts and recurring deposits.

    LIC Recurring Deposit

    The LIC Recurring Deposit scheme is a financial tool that enables individuals to save money and earn from their savings. The LIC RD is known as the Jeevan Saral plan and is a recurring deposit plan that allows individuals to deposit a sum of money either monthly, quarterly, half-yearly or annually for a fixed duration, on which they will receive a pre-determined interest.

    Individuals who wish to invest in the LIC Jeevan Saral can do so by opening an account with the LIC, after which they can select the tenure of their deposit. This can range between a minimum tenure of 10 years and a maximum of 35 years.

    This is a long term deposit plan that offers individuals attractive rates of interest, as well as the chance to decide the premium amount. If the individual survives till the deposit matures, he stands to receive 250 times the deposit, which is the maturity sum along with loyalty additions. In case the investor passes away before maturity of the term, a guaranteed return of investment of 250 times the initial amount deposited will be transferred to his heirs.

    Individuals investing in the scheme also stand to benefit from income tax exemptions, as the premium amount as well as the amount deposited is exempted from income tax under Section 80c.

    The LIC Jeevan Saral scheme has another advantage in that it is auto renewed. If an individual forgets to claim the premium upon maturity, the scheme is renewed for an additional 10 years, and he will receive additional premium over the extended period of time.

    The financial future of family members can be safeguarded from an early age through this scheme, as the minimum age for depositors is 12 years of age.

    Elderly investors stand to receive an additional amount as premium, with the minimum amount received as premium guaranteed being Rs. 400 a month.

    In case the individual wishes to opt out of the scheme, he may do so partially after a period of 3 years from the commencement of the scheme.

    To incentivize investors to invest in long term policies, LIC offers a loyalty addition bonus for every year above a 10 year deposit tenure. This amount will be handed over to the investor upon maturity of the deposit.

    Post Office Recurring Deposit

    The Post Office Recurring Deposit scheme is a 5 year RD scheme. Under this, investors stand to receive a guaranteed sum assured upon maturity of the premium deposited over the term.

    The Post Office Recurring Deposit scheme allows investors to make an initial deposit of Rs. 10/- and subsequent deposits in multiples of 5, with Rs. 10/- being the minimum amount. The deposits have to be made on a monthly basis, with the deposits accruing interest at the rate of a Foxed Deposit scheme.

    Investors who choose to would like to invest in the Post Office’s RD scheme can open as many accounts as they desire at any of the post offices in the country. Individuals can also open accounts in the names of minors, with the minimum age for opening an RD based account being 10 years.

    Upon maturity, the investor will receive a Sum Assured along with the interest for the period, i.e 5 years.

    Investors can also choose to open a joint account for their Post Office RD schemes, and can choose to transfer these accounts to any post office within the country.

    Comparison Between LIC Recurring Deposit and Post Office Recurring Deposit

    Given below are the differences between the Life Insurance Corporation’s recurring Deposit and the Post Office Recurring Deposit scheme:

      LIC RD Post Office RD
    Tenure Up to 35 years Up to 5 years
    Minimum amount Rs. 250 Rs. 10
    Subsequent premium amount Multiples of Rs. 50 Multiples of Rs. 5
    Loan against policy Available Not available
    Rate of interest Not guaranteed- loyalty addition provided 8.4% per annum, with interest compounded per quarter
    Tax benefit Yes, under Section 80c up to Rs. 1, 00, 000 (premium amount) No benefit
    Premature Surrender Yes, 80% of Monthly Sum Assured after 3rd year, 90% after 5th year Yes, but interest penalty charged
    Recurring Deposit - Sitemap

    Customer Reviews

  • Page 1 of 50 1 2 3 4 5
    • Citibank Credit Card
      "Petrol waiver card"
      CITIBANK
      0.5 5.0/5 "Blown Away!"
      The response is really good with CITI bank customer service. I hold Indianoil credit card for past 2 years. This Indianoil card is used for fuel purposes. This card has the reward point which can be redeemed for fuel which is a very good benefit. I am happy with the credit limit. The rate of interest is nominal with this card. Overall I am satisfied with Indian oil card service.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 25, 2017
    • Citibank Saving Account
      "Good account to use"
      CITIBANK
      0.5 5.0/5 "Blown Away!"
      I hold a salaried account for past 4 years with CITIBANK and I am using mobile application and the net banking with Citibank, which is easy to understand and very easy to navigate. The ATM and the branches are working in a processed way. This debit card is used with other bank Atms as well. Overall I am satisfied with the service.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 25, 2017
    • HDFC Bank Personal Loan
      "Need to improve in services"
      HDFC BANK
      0.5 1.0/5 "Really Bad"
      My personal loan is from HDFC Bank and the services has not been up to the mark. They need to know how to handle a customer and how to communicate as well. The team has to be more professional. The interest rate and charges is not a concern but the services is not satisfactory.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "One stop solution for the financial products"
      FULLERTON
      0.5 4.0/5 "Great!"
      If any body is in need of any kind of financial products, they can go visit the bankbazaar web site, which really helps the customer to get the financial products with the best rates in the market. The web portal with bankbazaar is easy to understand and very easy to use and customer friendly portal, because it has designed in a simple way. Overall I am happy with the bankbazaar.com service.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 25, 2017
    • Fullerton Personal Loan
      "Good and excellent"
      FULLERTON
      0.5 3.0/5 "Satisfactory"
      I haven't received any kind of status updation about my personal loan application. They have made a call and explained me about the product, after that they have not informed that why my loan got canceled. I would suggest Fullerton can work customer centric in future. Overall I can say I am satisfied with the service.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 25, 2017
    • SBI Car Loan
      "Good Service"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      I had taken car loan from State bank of India. I do not remember the interest rate for the loan. But the entire process went good with SBI without any issues. I am happy with SBI for the car loan. Documentation process went good with the bank. Their entire service is fine.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • SBI Saving Account
      "Better Service"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      I had savings account with State bank of India. But I was not able to continue the account as I had changed my job. The services are better with SBI and I availed car loan from the bank. I had no issues with sbi when I was using their services.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • review Saving Account
      "Average Service"
      INDIAN OVERSEAS BANK
      0.5 3.0/5 "Satisfactory"
      It has been one year when I opened savings accoun twith Indian Overseas Bank. I am not much comfortable with IOB, I approached online banking and I applied for the loan online but I did not get it from IOB. Their services are average.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • Karur Vysya Bank Personal Loan
      "The best service"
      KARUR VYSYA BANK
      0.5 5.0/5 "Blown Away!"
      Karur Vysya Bank offered me the personal loan. The documentation part was very simple, they asked me the documents which was easy to produce. I submitted form16, last six month bank statement and salary certificate along with the signature of my institute. Hardly they had taken four days, they delivered such a fast service. I felt easy to go with Karur Vysya Bank. They are good enough.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      ICICI BANK
      0.5 4.0/5 "Great!"
      When I visited bankbazaar website I found easy to apply for the loan over there. The moment I submitted my loan application, I received calls from them and they were good in providing proper response for my loan application. I had no issues with bankbazaar as I received regular calls from them.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • ICICI Bank Personal Loan
      "Not Satisfied"
      ICICI BANK
      0.5 1.0/5 "Really Bad"
      I preferred ICICI bank for the personal loan. But the bank demanded me to provide salary payslip which I could not produce so I had to close the loan application with ICICI bank. But I got the loan from Karur Vysya bank. ICICI should have been provided alternate options for the documents.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • Citibank Credit Card
      "Very good services"
      CITIBANK
      0.5 5.0/5 "Blown Away!"
      It is a life time free credit card with Citibank and the services are excellent from them online as I can see all my transactions I do on the card. The offers are also constant and the credit limit is good. I am happy that there has not been any hassles in banking with them.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Citibank Saving Account
      "The best bank"
      CITIBANK
      0.5 5.0/5 "Blown Away!"
      Citibank is very fast in the services and the way they take care of the customer without any delay in responding. They always put themselves in the customers shoes and word on the queries. So the customer gets a immediate solution. The online banking is excellent for the savings account.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • HDFC Bank Personal Loan
      "Good Service"
      HDFC BANK
      0.5 4.0/5 "Great!"
      HDFC Bank personal loan is fine, There is no drawback till now. There is no issues or challenges with them as such. They dint ask for too many documents for loan processing.The loan amount I have opted for 98 thousand and the rate of interest is 12.15% processing fee and charges 2400.
      Was this review helpful? 0
      , pune
      Reviewed on May 25, 2017
    • HDFC Bank Saving Account
      "Excellent"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I am really very happy with HDFC BANK and they are excellent in everything I am holding salary account for past 2 years and They are good in customer service based on my account they even offered me personal loan and it is process now.
      Was this review helpful? 0
      , pune
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      FULLERTON
      0.5 4.0/5 "Great!"
      The services at Bankbazaar has been excellent, a quick process and the website is very helpful. There were no hassles in getting information about the banks and the offers and it was overall a very good experience. The follow up calls are satisfactory too
      Was this review helpful? 0
      , pune
      Reviewed on May 25, 2017
    • Fullerton Personal Loan
      "Good Service"
      FULLERTON
      0.5 4.0/5 "Great!"
      I did get a proper response from Fullerton after me applying for a personal loan They were on time to contact me and give me details. I did not wish to go ahead for the loan as the rate of interest and processing charges was very high from them but no other option I had taken with them with 22% Rate of Interest.
      Was this review helpful? 0
      , pune
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Very good in services"
      STANDARD CHARTERED BANK
      0.5 5.0/5 "Blown Away!"
      Bankbazaar surely needs a five stars as they were excellent in the process. The response was very much immediate and I am happy that with just a click away I was able to get connected to the banks and also get details of the same in one single page.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • review Other Loan
      "Good saving"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I am paying the premium of Rs 1000 each for two SIP with HDFC bank. One SIP I have opened last year and another before three months. Both has the tenure of seven years after that I would be getting double the amount from SIP investment. I have invested few money in govt fund and stock market hence its equally balanced.
      Was this review helpful? 0
      , aurangabad
      Reviewed on May 25, 2017
    • Standard Chartered Bank Personal Loan
      "Nice experience"
      STANDARD CHARTERED BANK
      0.5 4.0/5 "Great!"
      Standard Chartered bank was good and on time to give me details on the personal loan. I also like the turn around time. It was a nice experience. I could not go ahead because of the changes in my personal requirement. The overall experience was good and the deal was decent on the interest rate.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    Common Loader Icon
    Page 1 of 50 1 2 3 4 5
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.