What is post office RD?
Recurring deposit in the post office is a savings deposit scheme offered by the Indian Postal Service. It is similar to a bank recurring deposit. What makes it different from a bank RD is that you can claim deduction on the principal amount invested under Section 80C of the Old Income Tax regime.
A few reasons why recurring deposit in post office is quite popular include:
- Accessibility in rural and urban areas
- Fixed tenure of 5 years
- Minimum amount to invest in RD in post office is Rs. 100
- Post office RD interest rates are competitive
- Offers an opportunity to develop regular savings habit
If you are interested in opening a recurring deposit account in the post office, you should go to the nearest post office and collect the RD application form. Submit the completely filled application form along with supporting documents and investment amount.