Post Office RD Pre-Closure Online – Step-by-Step Process
The Post Office Recurring Deposit (RD) Account is a secure, government-backed savings scheme ideal for individuals seeking steady and risk-free returns. It offers a fixed interest rate, currently around 6.7% per annum (compounded quarterly), and can be started with a low monthly deposit of just ₹100, making it accessible to all income levels.
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The Ministry of Communications of the Government of India supervises the Department of Posts provides two small savings schemes known as Post Office Time Deposit Account (TD) and five-year Post-Office Recurring Deposit (RD) Account that help the investors who are willing to build a secure wealth by investing as well as earning good returns without risk.
These schemes offer numerous benefits such as higher interest rates, flexible tenure, minimum amount needed in account opening, online account opening option, option to close the RD account before the maturity date.
In case of a financial crises, the account holders have a choice to do partial withdrawals to meet the unexpected costs and premature closure benefits of small savings schemes are used for covering any sort of unfortunate events or requirements which make small saving scheme a preferred option for the long-term investors.
Premature closure is done both online and offline but there are various guidelines which the investors should follow.
Premature Closure Rules for Post Office Recurring Deposit Account
The tenure of Post Office Time Deposit Account ranges from one year, two years, three years, to five years. You can open the account with a minimum deposit of Rs.1,000 along with the multiples of Rs.100. However, there is no maximum investment limit. The scheme offers interest rate of 5.5% on the small savings accounts that are maturing in third year and 6.7% that are maturing after fifth year.
The account holders can withdraw the deposit amount and the interest earned as a maturity value after one year, two years, three years, and five years. However, in case of premature withdrawal, the investors are not allowed to withdraw the deposit amount within the first six months of the account opening period.
In case the depositor closes their time deposit account after six months but before one year, the account holder will receive Post Office Savings Account Interest Rate of 4%. On the other hand, if you deposit money in your time deposit account for two years, three years, or five years and you prematurely close it after one year, the interest rate will be computed at a rate which 2% lower than the time deposit rate applicable on specific tenure.
National Savings RD: Features, Returns, and Premature Closure Rules
A National Savings Recurring Deposit Account comes with a maturity period of five years from the date of account opening. The account can be opening with a minimum deposit of Rs.100 or any amount in multiples of Rs.10. There is no upper limit for this scheme. The scheme provides a return of 5.8% per annum which is compounded quarterly. The depositors can prematurely close their recurring deposit account three years after the date of account opening for which they need to submit an application form named ‘Application for Premature Closure of Account’ to the post office where they have opened the RD account.
How to Pre-Close a Post Office RD Account Online
If the investors to make pre-closure of the Post Office RD account online, they should activate their PO savings account net banking services.
The following are the steps to prematurely close their Post Office RD account online:
- Visit ebanking.indiapost.gov.in.
- Enter your User ID and password and click on ‘Login’.
- Once you clicked on login, you will receive a One Time Password (OTP) on your registered mobile number.
- Next, enter the OTP that you have received and click on ‘Confirm’.
- Click on ‘General Services’ under the dashboard.
- Next, click on ‘Services Requests’.
- Under the ‘Service Requests’ section, choose ‘New Requests’ and click on the ‘Closure/ Pre closure of RD Accounts’.
- Next, select the type of deposit like Post Office RD or Post Office TD.
- Click on ‘Go’.
- Choose your deposit account number.
- Next, choose your credit account and click on ‘Submit Online’.
- You will be redirected to a new page where you need to enter the transaction password.
- Finally click on ‘Submit’.
- Once done, you will receive a reference number against the request that you have made.
- The amount will be credited to your savings account after 24 hours of submitting the request.
FAQs on How To Make Pre-Closure of Post Office Recurring Deposit
- What is premature closure of RD?
In case of premature of withdrawal of recurring deposiy, the bank will pay the interest on the prevailing rate on the date of deposit for the term the deposit remained with the bank.
- What is the locking period of RD in post office?
If you are planning to open an RD account in post office, you have to deposit money continuously for at least five years.
- Can RD be pre closed at post office?
Yes, RD can be pre closed at post office online.
- What are the rules for premature closure of the Post Office RD Account?
Premature closure of the Post Office RD Account can be done three years from the date of opening by submitting an application for premature closure at the post office where the account was opened.
- Is it possible to close the Post Office RD Account online?
Yes, you can close your Post Office RD Account online by activating your PO savings account net banking services.
- What are the steps to pre-close the Post Office RD Account online?
Firstly, you need to visit ebanking.indiapost.gov.in and log in with your User ID and password. Then, follow the steps provided in the online portal to initiate the closure request.
- Is there any charge for the premature closure of the Post Office RD Account?
There may be certain charges or penalties applicable for premature closure, depending on the specific terms and conditions of your RD account.
- How long does it take for the closure request to be processed?
Typically, the amount will be credited to your savings account within 24 hours of submitting the closure request online.
- Will I receive the full amount deposited, along with interest on premature closure?
The amount received on premature closure may be subject to deductions or adjustments as per the terms and conditions of the scheme, including applicable interest rates and penalties.
- Can I choose which account the closure amount should be credited to?
Yes, you can select the desired credit account for the closure amount to be credited during the online closure process.
- What should I do if I face any issues or have queries during the online closure process?
If you encounter any difficulties or have queries regarding the online closure process, you can reach out to the post office's customer support or the online banking portal for assistance and guidance.
- What documents are required for online premature closure?
Generally, you may need to provide identification documents and account details as per the bank's requirements to process the online premature closure request.
- Can I partially close my Post Office RD Account online?
The option for partial closure of RD accounts may vary depending on the specific terms and conditions of your account. You can check with the bank or the online banking portal for more information on partial closure options.
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