Monsanto Scholarship (M.Sc. Agriculture Science and Agriculture Biotechnology) 2026
The National Savings Recurring Deposit (RD) scheme by India Post encourages regular monthly savings with a guaranteed Read More... interest rate of 6.7% per annum. Read less
Details
Looking for a simple way to build your savings month after month? The National Savings Recurring Deposit (RD) Account offered by the Department of Posts is a fantastic option. It's designed to help you save small amounts regularly and watch your money grow with government-backed security and interest.
What Is This Scheme?
The National Savings Recurring Deposit (RD) Account is a government-backed savings scheme. You commit to depositing a fixed amount every month, and in return, you earn a steady interest. It's operated by the Department of Posts, Ministry of Communications, Government of India.
Who Can Benefit From This Scheme?
This scheme is for almost everyone looking to save systematically. This includes individual adults, joint account holders (up to three adults), minors who are at least 10 years old, and guardians can open accounts on behalf of individuals with unsound minds. You can even open multiple accounts.
Why This Scheme Is Important
The RD scheme is crucial for fostering a habit of regular savings among Indians. It provides a safe avenue for investment with guaranteed returns, ensuring that your hard-earned money grows without much risk. The flexibility of small monthly deposits makes it accessible to a wide range of people.
Objective
Benefits
Sources and references
Who Can Open an RD Account?
- Must be a resident citizen of India.
- Can be opened by a single adult.
- Can be opened jointly by up to three adults.
- A minor who has completed 10 years of age can open an account.
- A guardian can open an account on behalf of a minor or a person of unsound mind.
- Individuals can open multiple RD accounts.
- Important Note for Minor Accounts: Upon turning 18 years old, the account holder needs to submit a new Account Opening Form and fresh KYC documents to convert the minor account into an adult account.
- Online Account Opening: Accounts can also be opened through e-Banking or Mobile Banking facilities. Please note, a Post Office Savings Account is required to use internet banking.
How to Apply for an RD Account
You can open an RD account either in person at any Post Office or online through internet banking or mobile banking.
- Visit a Post Office: Go to your nearest Post Office with the required documents. Fill out the Account Opening Form and submit it along with your initial deposit.
- Online Application: If you have a Post Office Savings Account, you can open an RD account through the Post Office's internet banking or mobile banking portal.
Note: For online banking access, having a Post Office Savings Account is a prerequisite.
Documents Required to Open an RD Account
When opening an RD account, you will typically need the following documents:
- PAN Card (Permanent Account Number)
- Aadhaar Card or any other valid government-issued ID proof
- Proof of Date of Birth (especially for minor applicants)
- KYC documents for joint account holders (if applicable)
- KYC documents for the guardian (if opening on behalf of a minor or person of unsound mind)
FAQ’s
What's the main goal of the Recurring Deposit scheme?
The scheme aims to encourage people to save small amounts consistently every month. It helps build savings with guaranteed returns from the Government of India.
Can I deposit money whenever I want, or is there a deadline?
You need to deposit your chosen amount each month by a specific date. If your account was opened on or before the 15th of a month, your deposit is due by the 15th. If opened after the 15th, the deposit is due by the last working day of that month.
What happens if I forget to make a monthly deposit?
If you miss a deposit, you can deposit it later in the same month along with a small penalty. However, if you miss deposits in two consecutive months, the account might be discontinued.
Is there a way to get money before the RD matures?
Yes, you can get a loan against your RD account. After one year, you can borrow up to 50% of the amount you've deposited. The interest rate for this loan is 2% higher than your RD interest rate.
What's the interest rate for the RD account?
The National Savings Recurring Deposit Account currently offers an attractive interest rate of 6.7% per annum. This interest is compounded quarterly.
What is the least amount I need to deposit monthly?
The minimum deposit required is ₹100. You can deposit any amount that is a multiple of ₹10. There's no limit on how much you can deposit.
Are there any benefits for depositing money ahead of time?
Yes, you can make advance deposits for periods up to 5 years. Doing so can earn you a rebate, which essentially means a small discount on your deposits, especially if you deposit for 6 or 12 months consecutively.
Can a minor open an RD account?
Yes, a minor can open an RD account as long as they have attained the age of 10 years. A guardian can manage the account until the minor becomes an adult.
How do I handle the account when I turn 18 if it was opened as a minor's account?
Once you turn 18, you need to visit your Post Office. You'll have to fill out a new Account Opening Form and provide fresh KYC documents to convert your minor account into an adult account.
Can I deposit money into my RD account through online banking?
Absolutely! You can open and manage your RD account using the Post Office's internet banking or mobile banking services. However, you must have a Post Office Savings Account first to use these online facilities.
Click it and Unblock the Notifications
Sign in with Google