Recurring Deposits are one of the best ways to save regularly and are the preferred investment avenue for conservative investors who cannot spare a lump sum to save. RD can help by allowing them to save a portion of their income each month.
If you have savings account in a Post Office, you can open a Recurring Deposit account online by using your internet banking account. If you do not have net banking, you can visit the nearest branch and apply. Once you receive details, you need to register and activate internet banking.
Also, you can open Recurring deposits (RD) by visiting the desired post office branch and fill the form and submit along with KYC documents and deposit slip.
How to open Post Office RD account online
Individuals need to register to use net banking services from the Post Office after receiving login credentials. This option is available only after you have registered and have activated your account.
Step 1: Visit https://ebanking.indiapost.gov.in
Step 2: Enter user ID and Login password
Step 3: Click on 'General Service' tab available on the menu and click on 'Service request' tab
Step 4: Under 'Service request', click on 'New Requests' tab
Step 5: From the options, click on 'RD Accounts- Open an RD Account'
Step 6: In the new page, enter all the details required
Step 7: Click on 'Submit' and check the details in the next page
Step 8: Enter your 'Transaction password'.
Once it is successful, you will find the details of your RD account along with the maturity date and amount to be deposited periodically. The details will be updated on your Net banking account within 1 working day.
How to make payment to RD account using mobile banking
You can make online deposits into Post Office RDs using the India Post Payments Bank (IPPB) application. Download the app from Playstore and sign up for the Digital Savings Account. Enter the details required and create an MPIN to complete the account opening procedure.
This app allows you to deposit your monthly RD payment into your RD account via internet. Follow the procedures below to transfer money to your post office RD account using your IPPB account:
Step 1: Download the IPPB app and login using credentials
Step 2: Select Recurring Deposit from the Department of Posts (DoP) Products menu.
Step 3: Enter your RD account number first, followed by your DoP customer ID
Step 4: Choose the installment duration and amount
After that, IPPB will send you a notification if your payment transfer through the IPPB mobile app was successful.
Recurring deposit in Post Office
The minimum amount for a monthly deposit is Rs. 100, with multiples of Rs. 10 as a minimum. Interest rates applicable are 5.8% per annum, compounded quarterly, beginning on April 1, 2020. Account matures after 5 years (60 monthly deposits) from the date of opening.
Premature closure
As per the Post Office website, below are the rules applicable:
i) RD Account can be closed prematurely after 3 years from the date of account opening by submitting the prescribed application form at the concerned Post Office.
(ii) PO Savings Account interest rate will be applicable if the account is closed prematurely even one day before maturity.
(iii) No premature closure of account shall be permissible until the period for which the advance deposits have been made.
The last point essentially means that if you have made advance deposits for a certain period or periods, you cannot close the RD before such period.
