Post Office Recurring Deposit (PO RD) |
|
| Eligibility | 18-65 years, minor single, joint |
| Interest rate | 7.3% (compounded quarterly) |
| How to open | at Post office |
| Investment Limit Per Year | Min 10 INR to no limit |
| Partial withdrawal | up to 50% allowed after 1 year, you may repay the amount with interest. |
| Premature closing | possible |
| Maturity / Lock-in Period | 5 years RD |
| Extension | automatic year after year |
| Tax Benefits | NA |
NOTE: Intrest rates change quarterly slightly*
post office rd calculation
| Monthly deposit | Interest rate | years | Maturity |
| 1000 | 7.3 | 5 | 72,505.14 |
| 2000 | 7.3 | 5 | 1,45,000 |
| 5000 | 7.3 | 5 | 3,62,525 |
| 10000 | 7.3 | 5 | 725,051.39 |
| 20000 | 7.3 | 5 | 1,450,102.78 |
POSt office Rd with Monthly 2000
(interest compounded quarterly – added at the end of each quarter)
| Year | Year Deposits | Year Interest | Total Deposits | Total Interest | Balance |
| 1 | ₹24,000.00 | ₹964.52 | ₹24,000.00 | ₹964.52 | ₹24,964.52 |
| 2 | ₹24,000.00 | ₹2,837.43 | ₹48,000.00 | ₹3,801.94 | ₹51,801.94 |
| 3 | ₹24,000.00 | ₹4,850.85 | ₹72,000.00 | ₹8,652.79 | ₹80,652.79 |
| 4 | ₹24,000.00 | ₹7,015.32 | ₹96,000.00 | ₹15,668.11 | ₹111,668.11 |
| 5 | ₹24,000.00 | ₹9,342.17 | ₹120,000.00 | ₹25,010.28 | ₹145,010.28 |
Base amount: ₹0.00
Interest Rate: 7.3%
Effective Annual Rate: 7.5%
Calculation period: 5 years
Post Office Rd with Monthly 5,000
| Year | Year Deposits | Year Interest | Total Deposits | Total Interest | Balance |
| 1 | ₹60,000.00 | ₹2,411.30 | ₹60,000.00 | ₹2,411.30 | ₹62,411.30 |
| 2 | ₹60,000.00 | ₹7,093.57 | ₹120,000.00 | ₹9,504.86 | ₹129,504.86 |
| 3 | ₹60,000.00 | ₹12,127.11 | ₹180,000.00 | ₹21,631.97 | ₹201,631.97 |
| 4 | ₹60,000.00 | ₹17,538.29 | ₹240,000.00 | ₹39,170.26 | ₹279,170.26 |
| 5 | ₹60,000.00 | ₹23,355.43 | ₹300,000.00 | ₹62,525.69 | ₹362,525.69 |
tax benefit on rd of the post office
- 5 Years long term investment applicable but below 5 years RD Account not available with Post office.
- recurring deposit in post office tax exemption u/s 80c (up to 1.5 lakh rebate )allowed.
- NO TDS by the post office.
- Withdrawal: Under section 80TTA 10,000 allowed, in case of senior citizens 80TTB (up to 50,000 rebate).
post office rd interest rate 2019
| Year | Interest Rate* |
| 2019 | 7.3 % (from 2019) |
post office monthly income scheme
SBI RD Vs Post Office Rd
Penalty charges upon irregular payment: SBI 1.5 per Rs 100 (1.5%), Post Office 0.5 Paise for 5 INR (1%).
Opening & Closing RD online possible with SBI, But Not with Post office.
LockIn Period: SBI 1 Year to 6 years, but Post Office Only has 5 years deposit.
Interest rate: SBI @6.85% Post Office @ 7.3% (both are compounded quarterly)
TDS: deducted at the bank but not at Post office (TDS threshold limit is 40,000 from 2019-20)
What is the difference between TDR: and STDR in FD?
TDR: Pays Intrest on FD Monthly Quartertyl/6/12 basis.
STDR: NO payouts until maturity (interest earns interest)
Faq
Is post office recurring deposit eligible for 80c?
Yes, up to 1.5 lakh every year.
# Post office Saving here