Post office RD account maturity payment rules have been changed, details here

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India Post RD accounts come with a maturity period of 5 years or sixty monthly deposits from the day of opening

India Post RD accounts come with a maturity period of 5 years or sixty monthly deposits from the day of opening

Any Indian national over the age of 18 can start investing in a Post Office RD account with a minimum monthly deposit as low as Rs 100.

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  • Last update:September 26, 2021, 11:10 IST
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The Post Office has changed its rules and regulations for settling RD deposits or recurring deposits at maturity. The changes were made to make the process easier after many account holders contacted India Post highlighting the need to credit the outstanding RD loan / interest amount to the expired RD account in the software plan. After the implementation of these new policies, post offices currently using the basic banking solution or CBS compatible software will deduct the RD loan amount overdue or the interest amount from the overdue account.

This deducted amount can be adjusted via an office account at the time of payment at maturity. Simply put, after this rule change, India Post will not collect the RD loan amount or unpaid interest from the account holder at the time of the maturity value. In the event of repayment of the pending loan, the remaining amount as well as the interest will be deducted directly from the maturity value of the RD account.

India Post RD accounts have a maturity period of 5 years or sixty monthly deposits from the day they are opened. It can be extended for another five years by sending a request to the Post Office where the RD account was opened. However, the interest applicable during this period will be the same with which the RD account was opened.

RD account holders also have the option of keeping their account after maturity for up to five years without making a deposit. The savings plan comes with the ease of lending and the account holders can use their RD to borrow money. However, this facility can only be used after you have made 12 R&D installments and continued with it for at least one year.

Loans of up to 50 percent of the RD deposit can be used by clients with flexible repayment options. The borrower has the option of paying the amount in a lump sum of equal monthly installments. The interest rate applicable on such a loan is 2 percent plus the applicable rate of return on the DR.

Any Indian national over the age of 18 can start investing in a Post Office RD account with a minimum monthly deposit as low as Rs 100. Currently the interest rate offered on the RD account by Post Office is 5.8% per year.

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