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    5-year post office recurring deposit (RD) interest rate hiked: Check latest rate


    Small savings schemes' interest rates are revised every quarter in accordance with the movement of comparable-maturity benchmark government bonds.

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    The government has raised the interest rate on the five-year recurring deposit scheme by 20 basis points for the October-December quarter of the current fiscal year.

    Small savings schemes' interest rates are revised every quarter in accordance with the movement of comparable-maturity benchmark government bonds.

    What is the latest RD interest rate

    The interest rate on a 5-year recurring deposit has been raised to 6.7 percent from 6.5 percent for the period October-December, a 20 basis point increase.
    The interest rates of all schemes expect the recurring deposit rate have been kept unchanged.

    Also read: Earn up to 7.75%: Which bank is offering highest interest rate on recurring deposits (RDs)

    Recurring deposit details

    The minimum amount for a monthly deposit is Rs. 100, with multiples of Rs. 10. The subsequent deposits can be made up to the 15th of the month provided the account is opened before the 15th of the calendar month.
    (iv) If the account is started between the 16th and the final working day of the calendar month, subsequent deposits may be made up to the last working day of the month.

    Also read: Post office recurring deposits: Amount you will get on RD account continued beyond maturity period with or without payments

    After how many defaults, RD will be discontinued.

    Know the rules if RD installment not paid

    • If subsequent deposit is not made up to the prescribed day for a month, a default is charged for each defaulted month, default @ 1 rupee shall be charged for 100 rupee denomination account (proportionate amount for other denomination) shall be charged.
    • If in any RD account, there is monthly default, the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit.
    • After 4 regular defaults, the account becomes discontinued and can be revived within two months from 4th default but if the account is not revived within this period, no further deposit can be made in such account and account became discontinued.
    If there are not more than four defaults in monthly deposits, the account holder may, at his option, extend the maturity period of the account by as many months as the number of defaults and deposit the defaulted installments during the extended period.

    When Post Office recurring deposit matures

    (i)5 years (60 monthly deposits) from the date of opening.
    (ii) Account can be extended for further 5 years by giving application at concerned Post Office. Interest rate applicable during extension will be the interest rate at which account was originally opened.
    (iii) Extended account can be closed any time during the period of extension. For completed years, RD interest rate will be applicable and for period less than a year, PO Savings Account interest rate will be applicable.
    (iv) RD account can be retained up to 5 years from the date of maturity without deposit also.
    ( Originally published on Sep 30, 2023 )
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