Opening a Recurring Deposit (RD) account in the post office is a simple and secure way to save money and earn a fixed interest. If you are skeptical, rest assured that the Post Office Recurring Deposit Scheme is backed by the Government of India, making it a safe investment option.
In this article, we will walk you through the steps on how to open an RD account in the post office.
The Post Office Recurring Deposit Scheme is a savings plan where you can invest your money regularly for at least five years. It offers a fixed interest rate of about 6.70 % per annum, making it a low-risk option for you.
Moreover, these recurring deposits are not influenced by market fluctuations, making them relatively risk-free. And at the end of the tenure, you receive the maturity amount, including the principal and the interest earned over the duration.
The minimum deposit requirement to open an RD account in the Post Office is Rs.100. The minimum deposit amount in a Post Office RD account is Rs.10 per month.
You can open an RD account in a post office online and offline. Here are the steps for opening an RD account in a post office online -
Step 1: Download the IPPB application on your device.
Step 2: Create an account by entering your credentials, such as your PAN number. Then you will be asked to enter your mobile number and verify it with OTP.
Step 3: Link your Aadhaar by entering your Aadhaar card number and verifying it through OTP.
Step 4: Fill out the form with your personal information, address, account details, and nominee information.
Step 5: Once you submit the form, your post office savings account will be created with a unique customer ID and account number.
Step 6: Use your customer ID, date of birth, and account number to generate a PIN and log in to the app.
Step 7: Finally, select the ‘Send Money’ option. Under ‘DOP Products’, choose to deposit money into your RD account.
Here are the steps to follow if you want to open an RD account in a Post Office offline -
Step 1: Visit your nearest post office.
Step 2: Request for an RD account opening form and fill it out accurately.
Step 3: Submit the filled form along with the initial deposit amount and a pay-in-slip form.
There are some eligibility criteria to open an RD account in Post Office -
1. Single Adult: Any adult can open an RD account in their name.
2. Joint Account: Up to three adults can open a joint RD account. There are two types of joint accounts:
Joint A: Any one of the account holders can operate the account.
Joint B: All account holders must sign to operate the account.
3. Guardian for a Minor: A guardian can open an RD account on behalf of a minor.
4. Guardian for a Person of Unsound Mind: A guardian can open an RD account for a person of unsound mind.
5. Minor Above 10 Years: A minor aged 10 years or older can open and manage an RD account in their own name.
Note: There is no limitation for the number of accounts that any person can have singly or jointly with others persons.
Opening a Post Office RD account is a simple and secure way to build a habit of regular saving. The flexibility to deposit your funds online and offline, makes it convenient to manage your savings the way you like.
With its accessible minimum deposit requirement and attractive interest rates, an RD account is a great option for those looking to earn a stable return.
You can visit the home branch of the post office, fill up the application form and submit the necessary documents. After that the post office will activate DOP internet banking from the next business day and send you a confirmation message on your registered mobile number.
Yes, you can transfer money from your bank account to your post office RD account online.
The minimum deposit amount in a Post Office RD account is Rs.10 per month.
Post Office RD accounts have a tenure of 5 years.
The interest earned from a Post Office RD is taxable. If the interest exceeds Rs. 10,000, it would be liable for TDS deduction.
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