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  • 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
    • review Saving Account
      "Average Service"
      BANK OF BARODA
      0.5 3.0/5 "Satisfactory"
      I did not check with Bank of Baroda when I was planning to apply for the loan. Of course I am an old customer of BOB. Though I hold a savings account for fifteen years, I never approached the bank for the loan service. But for the banking service, BOB is good.
      Was this review helpful? 0
      , surat
      Reviewed on Aug 16, 2017
    • SBI Saving Account
      "Moderate Service"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      State bank of India is a leading bank among the public sector banks. But the bank is high in charges like interest rate for the loan process. I have no loans and credit card from SBI. For my savings account, I am getting a moderate service from the bank.
      Was this review helpful? 0
      , surat
      Reviewed on Aug 16, 2017
    • ICICI Bank Saving Account
      "Good to Approach"
      ICICI BANK
      0.5 4.0/5 "Great!"
      In the private banks, ICICI is good bank and as per my experience, it holds second place. I did not face any issues from ICICI bank for my savings account. It is like a hassles free service and the customer service is quite good to say. In all it is a good service.
      Was this review helpful? 0
      , surat
      Reviewed on Aug 16, 2017
    • HDFC Bank Credit Card
      "Norms are high"
      HDFC BANK
      0.5 1.0/5 "Really Bad"
      HDFC bank norms are very high for the credit card service. They have so many criteria to pass. Moreover, the bank is always high in the rate of interest. They used to collect more documents for the card. The annual charges are high as well. So I decided not to take credit card from HDFC bank.
      Was this review helpful? 0
      , surat
      Reviewed on Aug 16, 2017
    • HDFC Bank Personal Loan
      "Charges are high"
      HDFC BANK
      0.5 3.0/5 "Satisfactory"
      I did not take the personal loan from HDFC bank. As an old customer of HDFC bank, I should prefer HDFC bank for the loans but I preferred Capital first because the interest rate is very high with HDFC bank. Not only the rate of interest, processing fees and other charges also high.
      Was this review helpful? 0
      , surat
      Reviewed on Aug 16, 2017
    • HDFC Bank Saving Account
      "Good "
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      Among all the other banks, HDFC is good and approachable for banking services. Otherwise I would not been in the same bank for more than ten years. Yes I am a long term customer of HDFC. Banking services are good for the savings account than the other services like loans and cards too.
      Was this review helpful? 0
      , surat
      Reviewed on Aug 16, 2017
    • Bank Bazaar Customer Support
      "Nice Experience"
      CAPITAL FIRST
      0.5 5.0/5 "Blown Away!"
      I am a new customer of bankbazaar. So it is my first experience with them. First impression was really good from bankbazaar. I use mobile application which is comfortable to use, web portal also good. In a simple word to say, it is an excellent service.
      Was this review helpful? 0
      , surat
      Reviewed on Aug 16, 2017
    • review Two Wheeler Insurance
      "Lower company which provides lower premium"
      NEW INDIA ASSURANCE
      0.5 1.0/5 "Really Bad"
      I paid the bike premium of Rs.2200 for brand new vehicle but it met with an accident in 12 days of old. At the time I have reimbursed bill amount 28000 but New India Assurance gave me coverage value of Rs.17000. Bike cost of Bajaj pulsar 200 ns was around four lakhs.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Aug 16, 2017
    • Capital First Personal Loan
      "Happy service"
      CAPITAL FIRST
      0.5 4.0/5 "Great!"
      It had been a month when I took the personal loan from Capital First. I do not have much experience with capital First. But during the loan process, the service was very good from Capital First. They have done everything in a proper way also the interest rate was the lowest one which is around 10.75%.
      Was this review helpful? 0
      , surat
      Reviewed on Aug 16, 2017
    • ICICI Bank Personal Loan
      "Good service"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      My personal loan got disbursed form ICICI bank within 4 days of time. The customer service is good with ICICI bank. The rate of interest and the charges are very high when compared with others. The required loan amount has been disbursed and I am satisfied with the service.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 16, 2017
    • Royal Sundaram Car Insurance
      "Customer friendly process"
      ROYAL SUNDARAM GENERAL INSURANCE
      0.5 4.0/5 "Great!"
      I think I paid the premium of Rs.8500 for two wheeler insurance with Royal Sundaram for my Maruthi swift desire car. My vehicle around Rs.7.5 lakhs, now its almost around four years hence they gave coverage value of Rs. 4.25 lakhs, Its 60% of vehicle value, I am very fine with Royal Sundram renewal process is so convenient.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Aug 16, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      STANDARD CHARTERED BANK
      0.5 5.0/5 "Blown Away!"
      The response is quick and fast with bank bazaar. The moment after giving the requirement in bank bazaar website I got the call form bank bazaar in 5 minutes of time. The website of bank bazaar is easy to use and user friendly . I am satisfied using the bank bazaar webportal.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 16, 2017
    • Standard Chartered Bank Personal Loan
      "Prompt service"
      STANDARD CHARTERED BANK
      0.5 4.0/5 "Great!"
      My profile was not eligible to get the personal loan from Standard Charted Bank so that was the reason I haven't processed with Standard Charted Bank personal loan . The rate of interest was low when compared with others. I would say prompt service from SCB .
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 16, 2017
    • New India Car Insurance
      "low premium high value"
      NEW INDIA ASSURANCE
      0.5 2.0/5 "Expected more"
      I have taken car insurance from New India Assurance, I paid the premium of Rs.15,000 its has the tenure one year. I took Hyundai verna car, vehicle value around Rs.7 lakhs, they gave coverage value of 2 lakhs because my vehicle is around eight years old.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Aug 16, 2017
    • Kotak Saving Account
      "Suitable for common man"
      KOTAK MAHINDRA BANK
      0.5 3.0/5 "Satisfactory"
      I have opened Kotak Mahindra saving account through online, their executive came and collected the documents to verification KYC information. My saving account got generated on the same day. But they wont provide any cheque book or debit card, I could use it only for online transaction, If I want to receive the kit I should pay the amount of Rs.10,000.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Aug 16, 2017
    • Bajaj Allianz Life Life Insurance
      "Very good policy"
      BAJAJ ALLIANZ LIFE INSURANCE
      0.5 4.0/5 "Great!"
      Very recently I got the life insurance policy form BAJAJ ALLIANZ LIFE INSURANCE . This policy has the tenure of 20 years. Through Bajaj web portal I pay the premium . I pay the premium of Rs,50,000 of every year. The plan benefits and the coverages are good with this policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 16, 2017
    • HDFC Bank Credit Card
      "Easy and quick process"
      HDFC BANK
      0.5 3.0/5 "Satisfactory"
      I got first credit card from HDFC, based on that I have taken another credit card from ICICI, the customer relation with HDFC is awesome. I would do go with HDFC in term all financial experience, even their credit limit is also good. I am happy with them.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Aug 16, 2017
    • HDFC Bank Credit Card
      "Easy and quick process"
      HDFC BANK
      0.5 3.0/5 "Satisfactory"
      I got first credit card from HDFC, based on that I have taken another credit card from ICICI, the customer relation with HDFC is awesome. I would do go with HDFC in term all financial experience, even their credit limit is also good. I am happy with them.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Aug 16, 2017
    • HDFC Bank Personal Loan
      "Recommandable prodcuts"
      HDFC BANK
      0.5 3.0/5 "Satisfactory"
      Though I don't have relationship with HDFC they gave me good response, I have reached the bank for the personal loan. They came and collected the documents its under process. HDFC lowers interest among all other banks and processing fee is also nominal as per the market.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Aug 16, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      CITIBANK
      0.5 5.0/5 "Blown Away!"
      The bank bazaar is the best portal which gives very good response in any product . The follow up with bank bazaar is very good. They helped me to get in touch with the bank partner. The website of bank bazaar is easy to use and the mobile application is very user friendly .
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 16, 2017
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