Monsanto Scholarship (M.Sc. Agriculture Science and Agriculture Biotechnology) 2026

The National Savings Recurring Deposit (RD) scheme helps you save small amounts monthly to build your savings, Read More... offering a secure 6.7% annual interest. Read less

Details

Saving money regularly can be tough, but the National Savings Recurring Deposit (RD) account from India Post makes it easier. It's a government-backed scheme designed to encourage disciplined saving habits among Indians.

What Is This Scheme?

The National Savings Recurring Deposit (RD) Account is a product offered by the Department of Posts. It allows you to deposit a fixed sum of money every month. This helps you systematically build your savings over time, and in return, you get guaranteed interest from the government.

Who Can Benefit From This Scheme?

This scheme is for almost everyone looking to save regularly. You can open an account individually, as a joint account with up to three adults, or even on behalf of a minor or someone who is unable to manage their finances. Youngsters above 10 years can also open their own accounts.

Why This Scheme Is Important

The primary goal is to promote a savings culture in India. By setting a low minimum deposit, it makes saving accessible to a wider population. It provides a safe avenue for your money with a fixed interest rate, ensuring your savings grow without risk.

Objective

The National Savings Recurring Deposit (RD) scheme helps you save small amounts monthly to build your savings, offering a secure 6.7% annual interest.

Benefits

Rate of Scholarship:₹1,000/- per month (For 3 semesters only).

Sources and references

Guidelines (Page No. 185)

Eligibility Criteria

You must be a resident citizen of India.
Individuals can open an account.
Joint accounts can be opened by up to three adults.
Accounts can be opened for a minor who is at least 10 years old.
Guardians can open accounts on behalf of individuals who are mentally unsound.
You can open multiple accounts as an individual or jointly.
Joint accounts come in two types: 'Joint A' (operated jointly by all depositors) and 'Joint B' (operated by any depositor separately).
Note: If you opened an account as a minor, you need to submit a new Account Opening Form and KYC documents after turning 18 to convert it to an adult account.
Note: Accounts can be opened online through e-Banking or Mobile Banking. However, you first need to have a Post Office Savings Account to use these online facilities.

How To Apply

To open a National Savings Recurring Deposit (RD) Account, you can visit your nearest Post Office. You will need to fill out an Account Opening Form and submit it with the initial deposit. For online applications, you can use the e-Banking or Mobile Banking facility provided by India Post, after fulfilling the prerequisite of having a Post Office Savings Account.

Official Website: You can find more details and forms on the India Post website.

Documents Required

PAN Card
Aadhaar Card or any other valid government-issued ID proof
Proof of Date of Birth (for minor applicants)
KYC documents for all joint account holders (if applicable)
KYC documents for the guardian (for minor accounts)

FAQ’s

How does the Recurring Deposit (RD) scheme from the Post Office work?

It's a savings plan where you commit to depositing a fixed amount every month. The Government of India assures you of safe returns with guaranteed interest on your accumulated deposits.

What is the current interest rate for the RD account?

The RD account currently provides an annual interest rate of 6.7%. This interest is compounded quarterly, meaning your earnings also start earning interest.

What's the smallest amount I can deposit monthly?

You can start saving with as little as ₹100 per month. Any amount you deposit thereafter should be in multiples of ₹10.

Is there a limit to how much I can deposit in my RD?

No, the great thing about this scheme is that there's no maximum deposit limit. You're free to save as much as you can afford.

When should I make my monthly deposit?

If your account was opened on or before the 15th of a month, your deposit is due by the 15th. If you opened it between the 16th and the last working day of the month, you have until the last working day of that month to make your deposit.

Can I make payments for multiple months at once?

Yes, you can deposit money in advance for periods up to 5 years. Doing so can also earn you a rebate, effectively increasing your returns.

Will I be able to get a loan against my RD?

Absolutely. Once your account has been active for at least one year and you've made 12 monthly deposits, you can apply for a loan that's up to 50% of the total deposit amount.

How much interest will I pay if I take a loan?

The interest rate for the loan will be 2% higher than the interest rate currently applicable to your RD account.

I opened an account as a minor. Can I change it when I turn 18?

Yes. Once you reach 18 years of age, you'll need to visit your Post Office to submit a new Account Opening Form and fresh KYC documents to convert it into an adult account.

Is it possible to open an RD account online?

Yes, you can open an RD account using the Post Office's e-Banking or Mobile Banking services. However, you must first have a Post Office Savings Account to be eligible for these online services.