Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ News / India/  Post Office recurring deposit (RD): Penalty waiver, interest rate, other details
BackBack

Post Office recurring deposit (RD): Penalty waiver, interest rate, other details

Online deposit facility into Post Office RDs is however available through India Post Payments Bank savings account
  • In case of a default in monthly deposit, a fee is charged. But the government has waived it due to lockdown
  • In 5-year Post Office RD, an investor puts in a fixed amount each month for a period of 60 monthsPremium
    In 5-year Post Office RD, an investor puts in a fixed amount each month for a period of 60 months

    Due to the lockdown, the government has temporarily waived penalty/revival fee on 5-year Post Office RDs (recurring deposits) if monthly deposits are not made. Deposits can be made till June 30 without attracting penalty or revival fee. Online deposit facility into Post Office RDs is however available through India Post Payments Bank savings account.

    "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.

    In 5-year Post Office RD, an investor puts in a fixed amount each month for a period of 60 months. The interest rate remains the same for the depositor once he opens the account.

    In case of a 5-year Post Office RD, deposits can be made up to 15th day of next month if account is opened up to 15th of a calendar month and up to last working day of next month if account is opened between 16th day and last working day of a calendar month.

    In case of a default, a fee at the rate of Re 1 for every 100 rupee is charged. The depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit. After four regular defaults, the account becomes discontinued.

    For the April to June quarter, the government sharply cut the interest rate on 5-year Post Office RDs to 5.8% as compared to 7.2% in the previous quarter.

    Here are other things to know about 5-year Post Office RDs:

    5-year Post Office RDs can be extended for further 5 years

    Premature closure is allowed after three years from the date of opening of the account

    Loan facility is available facility. Loan up to 50% of the balance allowed after one year

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 06 Apr 2020, 02:36 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App