• 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
    • Axis Bank Saving Account
      "Great Bank"
      AXIS BANK
      0.5 5.0/5 "Blown Away!"
      When i transfer more than 1000 they will deduct Rs. 5 in IMPS transaction in net banking. Holding this salary account from January 2018. I have not using their Internet banking so far. I have tried their mobile application which is working fine.
      Was this review helpful? 0
      , durgapur
      Reviewed on Jun 21, 2018
    • ICICI Bank Credit Card
      "Not recommendable"
      ICICI BANK
      0.5 2.0/5 "Expected more"
      The problem with the ICICI, once i cleared the outstanding the amount only they will increase the credit limit. I have paid the outstanding amount completely. Even though they have not increase my credit limit. More than 1.5 years i have bee using this card. They have given me a credit limit of Rs. 20000 which is very less. I'm regular user ICICI bank account, even though they did not increase the limit.
      Was this review helpful? 0
      , durgapur
      Reviewed on Jun 21, 2018
    • SBI Cards Credit Card
      "Superb Card"
      SBI CARDS
      0.5 5.0/5 "Blown Away!"
      In SBI, they have offered me a credit limit of Rs. 44000 and I'm very much satisfied with that. For SBI, i have to pay Rs. 500 every year.I'm not customer of SBI even though they have given me a credit card. There are lots of cashback offers. Lots of privileges in dining. The air ticket offer and movie vouchers in bookmyshow is there.
      Was this review helpful? 0
      , durgapur
      Reviewed on Jun 21, 2018
    • Bank Bazaar Personal Loan
      "Helpful website"
      FULLERTON
      0.5 4.0/5 "Great!"
      Bankbazaar only helped me to get the loan. The people who are working there called me everyday and followed up the process. They used to update the status of the loan from their end. I also called them after i got the loan. I have got so many mails from the bankbazaar people from that i have clicked the link which is sent on the mail.
      Was this review helpful? 0
      , durgapur
      Reviewed on Jun 21, 2018
    • Fullerton Personal Loan
      "Better try with some other banks"
      FULLERTON
      0.5 3.0/5 "Satisfactory"
      Fullerton interest rates are too high. They have lots of verification process for that they have delayed the loan 20 days. Actually i have taken a loan of 1 lakhs but i have to pay 2.16 lakhs. For 60 months i have to pay 1 lakhs extra there must be a lots of hidden charges. They did not inform anything previously. Since I'm in need of money i have taken the money from them.
      Was this review helpful? 0
      , durgapur
      Reviewed on Jun 21, 2018
    • ICICI Bank Credit Card
      "Netbanking has to improve"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      I don't remember about the annual fee of ICICI. All the time i need purchase a bulk, i will convert into EMI. I used to call the customer care service to convert into EMI. Even there is no much offers on online. If i need to get a credit card net banking, then i have visit the branch and i need to give a written request. It has to be improved.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
    • HDFC Bank Credit Card
      "Good Card"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      Their is no annual charges for HDFC since have main account with HDFC. Whenever i visit the net banking i will click the EMI conversion by using that. Recently i had 20000 transaction which is very useful. The customer care service is also awesome. The limit is high.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
    • Citibank Credit Card
      "Hassle free services "
      CITIBANK
      0.5 5.0/5 "Blown Away!"
      It is very much useful. I don't find any difficulties by using this cards. They are charging Rs. 2000 as annual charges. Their is no charges for EMI. I don't get major offers on the CITI Card. I never tried of the redemption of cashback into cash. Its depends on my usage, their is nothing to be improved.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
    • Bank Bazaar Personal Loan
      "Good Website"
      TATA CAPITAL LIMITED
      0.5 5.0/5 "Blown Away!"
      The site is really helpful and customer service is very helpful. The facilitator of financial products. Everything is available in bankbazaar. Nothing to be improved. When i check for personal loan or any other products its very easy to apply. I can directly apply through bankbazaar. Paperless approval is there which is very helpful. I've been using this site for the last 2 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
    • Tata capital Personal Loan
      "Everything went well. "
      TATA CAPITAL LIMITED
      0.5 5.0/5 "Blown Away!"
      They have taken care extra care to disburse the loan. After the loan also the service good. They worked in a weekend also and the manager was very much helpful. There was no disturbance while taking the loan. I'm satisfied with the TATA Capital. I have applied of Rs. 2 lakhs the have offered me a interest rate of 10%. The processing is reasonable. I got the loan earliest what ever they have committed. They are very professional people.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
    • YES Bank Personal Loan
      "ROI is high"
      YES BANK
      0.5 4.0/5 "Great!"
      Interms of ROI is too high compared other banks. I found the customer care service which was helpful. I have applied around 5 lakhs how ever i they have approved the same. I already paid around 1.3 lakhs. I'm paying the EMI amount of 11400 every month through ECS. I have opted the loan for 5 years.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Jun 21, 2018
    • Bank Bazaar Personal Loan
      "Good Website"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I applied a personal loan through bankbazaar.com and I'm not a regular user of bankbazaar. Whenever I need any financial assistance I always come to this site. I never downloaded the bankbazaar mobile application. Overall, I'm satisfied with their customer care services.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Jun 21, 2018
    • review Other Loan
      "Excellent Service"
      PNB HOUSING FINANCE LIMITED
      0.5 5.0/5 "Blown Away!"
      It has been a very good experience with them and the process has been easy and simple. The loan amount which they had given is satisfactory as well as the interest rate with them also had been very good as well. There has not been any issues with them so far.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
    • HDFC Bank Personal Loan
      "Affordable"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      The documentation process was smooth anyway it can be improved. The person came to my place and collected all my documentation. Basically i was applied was around 3.75 lakhs however i have got only 50 K. I have applied from Bank to Bank transfer. The interest rate was nominal and affordable. I used to pay the EMI of 1400.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Jun 21, 2018
    • review Gold Loan
      "Good service"
      SHRIRAM CITY UNION FINANCE
      0.5 3.0/5 "Satisfactory"
      It has been a very good experience with them and it has been a very good service which they had been providing so far. The process in getting the card has been very simple and easy and the loan amount which they had provided had been satisfactory as well. There has not been any issues so far.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
    • Citibank Credit Card
      "One of the best card for offers"
      CITIBANK
      0.5 5.0/5 "Blown Away!"
      I have to make a minimum spend of Rs. 30000 to avoid the annual fee. In Amazon, by default there is 10% cash back offers. When i put the petrol, the sur charges will get waived off. I will get more rewards points for the petrol. In Groceries, i will get some cashback offers. Started using this card for more than 4 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 21, 2018
    • HDFC Bank Credit Card
      "One of the best card for offers"
      HDFC BANK
      0.5 3.0/5 "Satisfactory"
      I will get more reward points on flight booking and hotel stay. Any mode of the transport if i choose depends on that i will get rewards points. In flipkart, always the 10% cashback as well as 10* rewards points. I have been using this card for more than 2 years. Overall, I'm very much happy about the credit limit.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 21, 2018
    • ICICI Bank Credit Card
      "Good service"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      It has been almost 4-5 months i have been holding this card and the services which they had been providing had been good so far. They also had been provided me with a very good credit limit as well and i had been using the card for shopping and all other purchases. The card has been having good features and benefits with the card.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
    • HDFC Bank Personal Loan
      "Human error in HDFC"
      HDFC BANK
      0.5 3.0/5 "Satisfactory"
      They previous intimated about the charges. I would say this is one of the worst experience i have ever had. The application was very much confusion. The EMI amount also confused. Their were confusion 0.5 paise n the EMI. They have asked me to give the other cheque. I was asking the bank people to send the person but it did not happened. They have a cut off period before that i have to take the loan otherwise the EMI will get start for the same month itself. After the several follow up i have got my loan with the extra interest rate.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 21, 2018
    • SBI Cards Credit Card
      "Average Service"
      SBI CARDS
      0.5 2.0/5 "Expected more"
      I have been holding this card for the last one and a half years now. The services which they had been providing so far had been good but the credit limit with the card has been less than i expected. I have been using the card for shopping and all other purchases as well.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
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