Recurring deposit (RD) is a popular savings scheme. The government has sharply cut the interest rate on small savings schemes, including 5-year post office RD. The new rates are applicable from 1st April to 30th June 2020. Interest rates for small savings schemes are notified on a quarterly basis. After the latest revision, the recurring deposit scheme offered by post offices will fetch new investors 5.8% interest.
You can deposit online into Post Office RDs through India Post Payments Bank (IPPB) app. The monthly installment of RD amount can be transferred online into your RD account through this app. So, no need to stand in long queues in post office to deposit your money into your RD account
Here is a step-by-step guide for transferring money in your post office RD account through IPPB:
1) Add money from your bank account to IPPB account
2) Go to DOP Products, From there choose Recurring Deposit
3) Write your RD account number and then DOP customer ID
4) Choose the installment duration and amount
5) IPPB will then notify you for successful payment transfer made through IPPB mobile application
IPPB mobile app for new customers
You need to visit the nearest post office once for the basic registration process. Once, your digital savings account is opened, you can easily carry out all transactions online.
IPPB mobile app for existing customers
-Enter the details: Account number, Customer ID (CIF) and DOB rom your registered mobile number.
-You will receive a one-time-password (OTP) on your registered mobile number
-Enter the OTP
Due to the lockdown, the government has temporarily waived penalty fee on 5-year Post Office RDs. "The subscribers of RD A/c/ SSA/ PPF A/c may deposit the mandated due amount, if any of Current FY (2019-20) and April, 2020 (as the case may be) in their respective accounts till 30th June, 2020 and no penalty/ revival fee shall be charged," the Department of Posts said.