National Savings Recurring Deposit Account Post Office RD
Overview
The National Savings Recurring Deposit (RD) Account is a Post Office savings product backed by the Government of India. It allows individuals to save a fixed amount every month and earn guaranteed interest over a 5-year tenure. It is a safe and disciplined way to build a savings corpus, particularly suitable for salaried earners and small savers.
Objective
The scheme encourages a habit of regular saving among all income groups across India. It offers a risk-free investment option with government-backed returns, making it ideal for salaried individuals, homemakers, and small savers who want to grow their money steadily over time.
Benefits
- Fixed monthly deposits with a guaranteed interest rate set by the government
- 5-year tenure with compound interest calculated on a quarterly basis
- Loan facility available against the RD balance after a minimum period
- Account can be opened jointly or in the name of a minor
- Premature closure allowed after one year under specific conditions
- Interest is fully backed by the Government of India
Eligibility
- Any Indian resident individual can open an account at any Post Office
- Joint accounts are allowed for up to 3 adults
- Accounts can be opened in the name of a minor by a guardian
- There is no upper limit on the number of RD accounts a person can hold
Exclusions
- Non-resident Indians (NRIs) are not eligible to open new RD accounts
- Hindu Undivided Families (HUFs) and corporate entities are not eligible
Application Process
- Visit the nearest Post Office branch
- Fill in the RD account opening form available at the counter
- Choose a monthly deposit amount (minimum Rs. 100, in multiples of Rs. 10)
- Provide KYC documents and make the first deposit to open the account
- Account passbook is issued confirming the opening and deposit schedule
Documents Required
- Aadhaar card or any valid government-issued identity proof
- Address proof such as utility bill or ration card
- Passport-sized photographs of the account holder
- PAN card for deposits above specified tax reporting thresholds
- Nomination form designating a nominee for the account
