The Post Office Recurring Deposit (RD) scheme is a popular and reliable way to inculcate regular savings habits and grow your money over time. It offers a secure option with guaranteed returns, making it suitable for those seeking a safe and steady way to build a corpus. This guide will explain the process of opening a Post Office RD account, outlining both online and offline methods for your convenience.
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The Post Office Recurring Deposit (RD) Scheme, also known as National Savings Recurring Deposit, is a savings scheme offered by India Post. It is a good option for people who want to inculcate a habit of regular savings and grow their money over a fixed period. Here are some key features of the scheme:
Minimum deposit: Rs. 100 and in multiples of Rs. 10 thereafter
Tenure: 5 years (extendable for another 5 years)
Interest: 6.7% per annum compounded quarterly
Loan facility: You can avail a loan up to 50% of the deposit after one year of successful deposits
It is a low-risk scheme with guaranteed returns suitable for those seeking to build a corpus through regular deposits.
What Are the Steps to Open a Post Office RD Account Online?
The IPPB (India Post Payments Bank) application was launched in 2018 to fulfill post office banking requirements online. You can open a bank account via the app and make payments to your Recurring Deposit account. Given below is a step-wise guide to open an RD account online:
Open a Digital IPPB Account:
Download the India Post Payments Bank (IPPB) mobile banking app.
Open a digital savings account by clicking "Open Your Account Now".
Fill out the online application form giving the following details:
Personal information
Communication address
Account information
Nominee details
Once you enter the details and submit the form, the post office savings account is ready with a customer ID and account number.
Now, you can use your customer ID, Date of Birth, and account number to generate a PIN to log in to the app.
The app's menu tab has a “Send Money” option. Under this option, you must click “DOP Products” to deposit money into the RD account.
Register for Internet Banking:
If you have an existing Post Office Savings Account (Account ‘B’), visit your local branch.
You'll need a post office debit card, a valid mobile number, and an email address.
Collect and submit an internet banking application form along with KYC documents.
Internet banking activation usually takes 24 hours after verification.
Create Your Post Office RD Login:
Once internet banking is active, visit the Department of Post internet banking website.
Click "New User Activation" and enter your details (name, mobile number, customer ID, etc.).
Create login and transaction passwords, and set up security questions.
Your system-generated user ID will be used for future transactions.
Make Online RD Payments (using IPPB Account):
Transfer funds from your linked savings account to your IPPB account.
In the DOP Products tab, select "Recurring Deposit".
Enter your RD account number and customer ID.
Choose the RD instalment amount and period.
Upon successful payment, you'll receive a confirmation notification.
Steps to Open a Recurring Deposit Account at the Post Office
If you wish to open your RD account at the post office, these are the steps:
Visit your nearest post office.
The post office will provide you with an RD application form. Fill it out accurately, including your personal details, desired deposit amount, and tenure (minimum 5 years).
Along with the completed application form, make your initial deposit amount. You can pay in cash or by cheque.
Once your application and deposit are processed, you'll receive a passbook for your RD account. This passbook will record your future recurring deposits and maturity details.
Conclusion
Opening a Post Office RD account is a straightforward process, allowing you to choose between the convenience of online registration or a traditional in-person visit to your local branch. With minimal initial deposits and flexible tenures, RD accounts cater to a wide range of saving goals. By following the steps mentioned above, you can easily open your RD account and start your journey towards achieving your financial objectives.
FAQs
Who can open an RD account?
A single adult
A minor above 10 years in his own name.
Joint Account up to 3 adults
A guardian on behalf of a minor
A guardian on behalf of a person of unsound mind
What are the different ways to open a Post Office RD account?
You can open an RD account in two ways:
Offline: Visit your local post office branch and inquire about RD Accounts. They will provide you with an application form to fill out. Submit the completed form along with your initial deposit in cash or cheque.
Online with internet banking: If you have an existing Post Office Savings Account and activated internet banking, you can open an RD account online. The process involves logging into your internet banking account and navigating to the RD section to initiate the application.
What documents do I need to open an RD account?
To open an RD account, you'll need:
Completed RD application form obtained from the post office
KYC documents identity and address proof
Initial deposit amount in cash or cheque
What is the minimum deposit amount for an RD account?
The minimum deposit amount for a Post Office RD account is Rs. 100. Subsequent deposits must be in multiples of Rs. 10.
What is the minimum tenure for an RD account?
The minimum tenure for a Post Office RD account is 5 years. However, you can extend it for another 5 years at maturity.
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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