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  • Post Office Recurring Deposit

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    About India Post

    Commonly referred to as the ‘post office’, the Department of Post, also known as India Post, is the government operated postal system of India. Founded all the way back in 1774, India Post is a part of the Ministry of Communications and Information Technology and offers multiple services to the Indian population like letter post, parcel service, EMS (Enterprise Messaging System), delivery, freight forwarding, third party logistics, insurance, deposit accounts and more.

    Recurring Deposit from India Post

    India Post offers it’s customers the facility of a 5-Year Recurring Deposit (RD) Account which is essentially a deposit scheme allowing customers to add to their savings by investing money which earns interest over a fixed period of time. An RD is usually opened for a fixed period of time and deposits must be made at predetermined intervals which may be monthly, quarterly, depending on the terms and conditions of the deposit scheme. Unlike a fixed deposit, an RD is not a one-time investment and may be closed before its maturity date. The India Post Recurring Deposit Account is an ideal investment option for first time investors or young professionals as it does not require customers to invest large sums of money towards installments but does earn you handsome interest at the end of the maturity period.

    Fixed Deposit

    Features of India Post Recurring Deposit

    • Customers can open an RD Account with a minimum of Rs 10/- per month or any amount in multiples of Rs 5/-. There is no maximum limit on the amount one may wish to invest each month.
    • You can open an RD Account by paying in cash or by cheque. In case payment is made by cheque, the date of presentation of the cheque will be considered as the date of deposit.
    • Customers can avail the Nomination facility not only at the time of opening the account but also afterwards.
    • You can transfer your Recurring Deposit Account from one post office to another.
    • Customers are free to open any number of RD Accounts in any Post Office of their choice.
    • Customers making an advance deposit for at least 6 months are entitled to a rebate.
    • Customers have the option of converting a Single account to a Joint account and vice versa.
    • If the RD Account has been opened by the 15th of a month, then the subsequent deposit to the same can be made up to the 15th of the month. If the account has been opened after the 16th of the month, up to the last day of the month, then the subsequent deposit can also be made up to the last working day of the month.
    • After attaining majority, a minor must apply for converting the RD account in their name.
    • Customers are allowed one withdrawal of up to 50% of the account balance after one year of opening the account.
    • Any delay in deposits will attract a default fee at the rate of 5 paise for every Rs 5 of the deposit amount. If a customer defaults on deposit payments for 4 consecutive times, the account shall be discontinued and can be revived in a period of 2 months. However, if the account is not revived, then no further deposit can be made.


    • Recurring Deposit Accounts can be opened by individuals as single or as joint accounts.
    • An RD Account can be opened in the name of a minor. Minor individuals aged 10 years and above can open and operate their RD accounts.

    Interest Offered

    The India Post 5-Year Recurring Deposit Account offers an interest rate of 7.4% per annum which is compounded quarterly.

    Post Office Recurring Deposit (RD) Online Payment

    Currently there is no way that post office RD online payment can be carried out from the account holder’s end except through ECS. You can use Electronic Clearing Service (ECS) to ensure that your deposits are paid. However, if you have an agent, he or she can conduct the post office recurring account online payment on your behalf. This is possible through the post office agent portal.

    Premature Withdrawal of Recurring Deposit (RD) in Post Office

    There could be instances where an individual is cash-strapped and in dire need of money. While it is not recommended to close an RD before its maturity, there is a provision for premature withdrawal of the amount in an RD. Listed below are the important points associated with the premature withdrawal of an RD.

    • Premature withdrawal is permitted only after an account has been active for a minimum of 1 year.
    • A minimum of 12 monthly deposits should have been made into the account before premature withdrawal is permitted.
    • Only one withdrawal is permitted if the above conditions are satisfied. The quantum of such withdrawal should not be more than 50% of all deposits until said time.
    • Withdrawal amount can be in multiples of Rs.5.
    • Amount withdrawn should be repaid, either as a single lump sum amount or through EMIs.
    • Interest should be paid by the individual on the amount withdrawn.
    • Amount withdrawn needs to be repaid, with interest, before the RD matures.

    Know the Current Recurring Deposit Rates

    Read More Articles On RD

    News About Post Office Recurring Deposit

    • Demonetisation Gives Impetus to Post Office Schemes

      The aftermath of the demonetisation move has left the country confused, with people scrambling to banks, ATMs, and post offices to get their old currency exchanged. Given that post offices are getting a large number of people, the management of certain circles has taken it upon themselves to utilise this opportunity to market their investment schemes. Post offices across the country currently offer a number of schemes, with the popular ones being Recurring Deposits, Sukanya Samriddhi Yojana, Public Provident Fund, Post Office Savings Bank Scheme, etc. Most post offices also emphasised on the need to stay calm, for people have around 50 more days to get their old currency exchanged.

      30th November, 2016

    • Post Offices See Spurt in Cash Deposits

      The Department of Posts has made most of its ATMs across the state operation, a move meant to lighten the strain of customers waiting in serpentine queues to withdraw money. These ATMs are, however, only accessible to those with postal accounts.

      The cumulative total of transactions in post offices across the state in the four days since demonetization was implemented has crossed Rs. 915 crores. Judging by the sheer volume of deposits made, people seem to have found depositing cash in post offices rather than banks. Of this above figure, nearly Rs. 772 crores have been deposited in the savings bank accounts.

      Officials of the postal department have stated to have extended working hours of counters that exchange currency - of Rs. 100 and Rs. 2000 notes. This past Sunday, these counters saw a transaction of worth Rs. 63 crores in exchanged notes. Even as mail delivery has been suspended for two days on account of national holiday, the postal department continues to engage in banking transactions. People have been queueing up to exchange 500 and 1000 rupee notes, which have lost legal tender value, at almost 2600 head post offices and sub-post offices. Postmaster general (mails and business development) J.T. Venkateswarulu stated that they have initiated providing the new Rs. 2,000 notes, adding that demonetisation has encouraged plenty of people to open new postal savings bank accounts.

      29th November, 2016

    • Cash Deposits in Post Offices Go up

      People are facing great inconvenience after demonetization as they have to stand in long queues for withdrawing money from the ATMs. In order to ease this situation, the Postal Department has started operating almost all the ATMs it has across Chennai. However, people who have postal accounts can only withdraw money from these ATMs.

      Within a period of 4 days from implementation of demonetization, the post offices witnessed transaction of Rs.915 crore. Several individuals have found it simpler to go and deposit the money in post offices. Out of the total transactions, Rs.772 crore was deposited in savings accounts. Postal department officials stated that work hours have been extended for all of them who deal with exchanging currency. The currency bills currently available are Rs.100 and Rs.2,000. Currently, the postal department is busy in transactions and mail delivery has been suspended or now. Mostly, people are exchanging their Rs.500 and Rs.1,000 bills that do not have any value after the implementation of demonetization. In Chennai, there are approximately 2.50 crore accounts that include savings bank accounts and recurring deposits too. 91 postal ATMs have been set up in Chennai and 80 of them are already working.

      15th November, 2016

    • Post Offices Running Short of New Currency

      The aftermath of the demonetisation scheme is still being felt across the country, as hordes of citizens are making a beeline to banks and ATMs to withdraw money. While post offices have also been equipped to dispense the new currency, a majority are facing a cash crunch. Given the fact that post offices get their money from banks and that banks themselves are facing a currency shortage, customers who lined up across different post offices in the country had to return empty handed. Confusion regarding usage of old currency notes was prevalent across multiple branches, as a few of them refused to accept old denominations citing demonetisation. Customers with Recurring Deposits where the most affected, as post offices refused to accept old notes. The old currency, however, was accepted to deposit money into savings accounts. The situation is expected to improve in the coming days.

      12th November, 2016

    • Government Considers Gold RD Scheme

      The Ministry of Finance is considering a RD (Recurring Deposit) Scheme for Gold in post office or banks. The government had reduced gold import through sovereign gold bond scheme and the RD scheme will help investors for whom the minimum investment required for the bond is unaffordable. The Finance ministry is trying to bring in a scheme that will allow investors to purchase golf for Rs.300 to Rs.500 per month. The RD Gold Scheme will help rural investors. The gold in this scheme will be credited in decimals of grams until maturity. Depositor will get money equivalent to the total gold that has been credited in the passbook on maturity at the bullion price prevailing at that time. There won’t be any interest on the scheme.

      26th October 2016

    • Venkaiah Naidu: Post Offices have an Important Role to Play

      M Venkaiah Naidu, the Union Minister for Information and Broadcasting said that the postal department and services, contrary to popular misconception, has defied the rise of mobile and internet services. While inaugurating the Telangana Postal Circle, he said that the Telangana Postal Circle and Andhra Pradesh Postal Circle will cater to the state's’ needs while increasing their efficiency. He also said that the Andhra Pradesh Postal Circle will receive new headquarters in due time.

      The Minister of State for Communications and Minister of State for Railways, Manoj Sinha said that the Department of Posts is currently in the process of setting up the India Post Payment Banks with complete Government equity. He also said that the number of saving accounts in post offices increased by 3 crores within a year of the functioning of the NDA government. He said that the India Post has reinvented its role in rural narrative.

      17th September 2016

    • Post Office Agents Recognized for their Contribution

      Post Office agents have received their much needed recognition. Senior Superintendent of Tezpur Head Post Office, A Patnayak, has observed that the PO agents are contributing a lot to the national coffers. He also also encouraged them to collect small saving deposits under the post offices of Darrang and Udalguri. These agents have helped create awareness amongst villagers in rural and remote areas. There is no cap on the maximum limit of post office agents. This has helped minimise the unemployment problems in India. Post offices have much-needed work ahead of them to reform and offer more facilities to the people. Customers should also be able to access and avail of these facilities at home. The post office currently offers PPF, NSC, Savings deposits, Recurring deposits, Sukanya Vriddhi Scheme, Kisan Vikas Patra, Life insurance, and more. These national schemes are being conveyed to every citizen through the agents. The cooperation of these PO agents bring strength to the national economy.

      12th November 2015

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