Post Office Recurring Deposit

One of the most popular schemes amongst other post office saving schemes is the post office recurring deposit ( post office RD). This scheme is best for individuals who have small investible amounts ; the scheme can be started with Rs 10 per month and subsequent amounts in multiples of Rs 5. There is no maximum amount that can be invested.

The scheme commands an interest rate of 7.3% annually. The scheme also offers high flexibility, the depositors can partially withdraw upto 50% of the total balance after one year. You can also keep extending the amount by 5 years at the end of investment tenure. RD is transferable between post offices, can be opened as a joint account as well as allows flexibility of opening multiple accounts. Recurring deposits are a great way to cultivate regular investing and saving habits amongst small investors who want to build a corpus over time with minimum risk to capital.