Post Office RD Account, How to open Online at indiapost.gov.in under the Post Office Saving Scheme. If you want to invest your money somewhere and don’t want to take any risk, then the Post Office is the right option for you.
In the Post Office saving scheme, your money is secure and so also your return. Here’s one investment in which the risk is negligible and the returns are also good and Post Office Recurring Deposit Account is one of them as an investment avenue.
Post Offices play a crucial role in a country’s economic operation. A post office, in addition to its core role of transporting mail around the world, also provides a variety of financial services to its customers. Customers can use these financial services as a savings plan that is free of market dangers.
The Post Office Recurring Deposit Account can open a single adult or can be opened jointly by three people. A guardian in the name of a minor and a minor above 10 years of age can also open this account. An individual can open several recurring accounts for oneself.
|Name of the Account||Post Office RD Account|
|Title||How to Open the Post Office RD?|
|Subject||India Post launched the Post Office RD under Post Office Saving Scheme|
The Post Office RD Scheme is a government-guaranteed scheme of depositing small amounts in installments with better interest rate. In this scheme, you can start investing with a small amount of just Rs 100. Moreover, there is no maximum investment limit, you can invest as much money as you want.
Rate of Interest on Post Office Recurring Deposit: At present, the Post Office Recurring Deposit scheme offer interest of 5.8%. This new interest rate is applicable from April 1, 2020. The Central government has fixed the interest rates of all its small savings schemes every quarter.
Eligibility Criteria for the Post Office RD account
The primary eligibility criteria to open an RD account in a Post Office would be the following:
- Applicant must be an Indian national and over 18 years old.
- Minors who are above the age of 10 years.
- Parents/guardians of a minor to open an account on behalf of the latter.
For the minors, the RD account will be held jointly by the guardians or parents and for the applicants above 18 years old, the account will be under the name of the primary applicant.
How to Calculate Interest on the Post Office RD?
The interest on the Post Office Recurring Deposit is offered based on the compounding principle. The formula for compound interest mentioned below is used to calculate the interest: A= P x (1+R/N) ^ (Nt) (A = Maturing Amount, P = Recurring Amount, N= Number of times the interest has been compounded, T= Tenure and R= Rate of interest)
|Regular Monthly Deposit||Rs.100 (Minimum)|
|Interest rate||5.8% p.a.|
|Total savings||Depends on the investment amount|
|Total interest earned||Depends on the investment amount|
Taxation on the Post Office RD Account
The Post Office Recurring Deposit account is exempted from tax deductions under Section 80C of the Income Tax Act and individuals can claim up to Rs.1.5 lakh per annum as tax exemption under this section.
However, the interest which is generated through the Post Office RD will be subjected to tax cuts. The account holders will be required to pay tax on the interest amount as per the income tax slab.
Apart from this, an interest which exceeds Rs.10,000 will be liable for a TDS deduction and individuals holding an active PAN card will be required to pay TDS at the rate of 10% and those without an active PAN card will have to pay TDS at the rate of 20%.
How To Open Post Office RD Account?
Post Office Recurring Deposit Account can also be opened online. For this neither you have to fill any form nor will you need to go to the post office for passbook.
After opening the account, you can deposit (Post office RD Amount) online every month or you can also take the option of automatic deposit. Post Office Fixed Deposit Account (FD / TIME DEPOSIT) can also be opened online.
There Are Three Ways To Open An Online Recurring Deposit (Post Office Online RD Account)
- By filling the form by visiting the post office counter (Post office Recurring Deposit Account form fill up)
- Through Post Office RD Agent.
- From Post Office Internet Banking or Mobile Banking (Post office Recurring Deposit Account open online)
There are two methods of Post Office Online RD Account:
- How to open Post Office Online Recurring Deposit Account with Post Office Internet Banking?
- How to open Post Office Online RD Deposit with Post Office Mobile Banking?
How To Open Post Office RD Account Online?
For the Online Post Office Recurring Deposit Account Opening under the post office RD scheme, you should have the facility of post office mobile banking on your post office savings account. After logging into the Post Office Mobile Banking App, you have to click on the last option Requests.
Here you have to proceed by clicking on “Open Recurring Deposit Account” for Post Office Recurring Deposit account . The RD Amount for which you want to get online RD (Post Office RD khata) done, first you have to write it.
After that if you have more than one POSB account showing then you have to select ” Debit Account “. If you want to write something in the Remark option, you can write or leave it blank. And finally you have to proceed by clicking on ” Continue “.
On the next page, you have to check the details (online Post office Recurring Deposit account check) and enter ” Transaction Password ” and ” Submit “. Immediately your request number and RD account number will come. The process to open Post Office Online Recurring Deposit from Post Office Net banking is similar to this.
RD Passbook: After opening an online account (RD online post office) in the Post Office RD scheme, you do not need to take a passbook. Still, if you want, you can take the passbook by giving the account number in any CBS post office.
You can see all the information related to your account online (Post office Recurring Deposit account check online). One important thing is that there is no nomination option in online account opening right now, so you will have to get it done by going to the post office.
RD Auto Debit Facility: If you want your RD money to be deducted every month from your post office savings account, then it is also possible. For both online account or offline account, you have to apply for standing instruction at the post office counter only.
How To Deposit Post Office RD From Bank Account?
For the Post Office Recurring Deposit Account Online Payment, Now even if your money is lying in any other bank account, you can deposit it in Post Office Recurring Deposit Account without going to the post office.
For this you should have IPPB Saving Account and that IPPB Saving Account should be POSA Linked to your POSB Account. First of all you have to transfer your money from your bank to IPPB savings account.
After that, this amount has to be transferred to your post office savings account by sweeping out the IPPB Mobile Banking App. After getting the amount in POSB account, you can open online RD or FD by the above mentioned process.
FAQs on Post Office RD
What is a Post Office Recurring Deposit Scheme?
The post office offers 9 saving schemes including Post Office Savings Scheme that are backed by the Government of India. The recurring deposit offered by the Post Office as a mid-term saving scheme. With this scheme the depositors will be depositing their investments for 5 years at minimum.
What is the interest rate on Post Office RD?
The interest payable on post office recurring deposits is 5.8% p.a.
Is Post Office RD Tax-Free?
Yes, an investment in a Post Office Recurring Deposit is eligible for a deduction under section 80C of the Income Tax Act. However, the interest income is taxable under the head income from other sources.
How to deposit RD Account Every Month online?
For the Online Post Office RD Payment: In this online RD account, you can deposit in four ways every month. Cash from any post office counter, secondly through post office net banking or mobile banking, thirdly through IPPB mobile banking app online and fourthly through automatic post office savings account. To make online payment of RD through Post Office Net banking or Mobile Banking, you can deposit by selecting Recurring Account in the payment option.
How To Close Post Office RD Account Online?
After 5 years you can close this account online only. You can also easily close the account opened from the post office through online net banking. According to the rules, the RD account can be closed prematurely after three years. At that point you will get interest at the interest rate of the savings account.