Want to know more about RD and post office RD calculator 2022 ? You have come across the right article for that. A Recurring Deposit is commonly known as an RD.
It is a term-deposit feature that all Indian banks and post offices provide to all their customers.
Through an RD or a recurring deposit, you can very easily make deposits regularly, and in turn, you will be able to earn a pretty decent return against the investment that you make.
Recurring deposit aims at imbibing a regular habit of saving among people. It usually depends from one bank to another on how much the minimum amount of deposit will be.
In some places, it can be as little as a thousand rupees. Next, the minimum time for which you can make the deposit is six months, while the maximum is around ten years.
A recurring deposit account will have a higher interest rate than a savings account. Furthermore, it depends on the bank whether they will allow you to make a premature withdrawal.
Usually, you cannot withdraw the amount present on your fixed deposit account before it matures.
As far as the RD calculator post office is concerned, as the name suggests, this calculator will help you to calculate all the returns that are generated from your RD account.
India post brings you this offer whereby you can open a national savings recurring deposit. You can actually open a recurring deposit account with any post office throughout India.
You might have a recurring deposit account, but, unless you get to calculate your returns properly, you will face problems with keeping a proper tab on it.
That is where the post office rd interest rate 2022 calculator comes into the picture. Not only will you be able to keep a tab on it, but you will also be able to get the results instantly!
To calculate your maturity amount, the only thing you need to do is feed in details. These details are, the amount you have deposited, the rate that you pay interest, and finally, the time for your deposit to mature.
How to Use a Post Office RD Calculator?
It is very easy to calculate your return while using a post office recurring deposit calculator. Previously, when this calculator was not available, one had to use a long and complicated formula.
Calculating that manually is a headache and the results might often come wrong. However, with this calculator, it is a matter of only a few steps. You can easily download the post office recurring deposit calculator application on your phone. That will be the first step.
Go to the playstore and search for this application. When you get it, download it on your phone. Once you do that, they will ask you to enter the amount of your monthly investment.
Next, you need to feed in the interest rate that the post office is charging you. Finally, the period of time that you have for the investment. That’s all.
With this information, the calculator will instantly find out your amount of return in a few seconds. In just two steps, you get the result, which required you to go through a huge manual calculation previously.
Benefits of Using a Post Office Recurring Deposit Calculator
By now you have already understood how beneficial it is to use a post office recurring deposit calculator.
But, if by any chance you are still not convinced, here are a few more benefits that will show you how revolutionary this application is.
With a recurring deposit calculator, you need not stick with one set of variables. Consequently, you can very easily change the variables at any time you want.
Not only can you input whatever variables you want, but also you will be able to calculate the return within a few seconds. It just makes life so much easier!
What’s more, you can very easily compare different plans to choose from in this calculator. Feed in different variables and compare the results for yourself.
Furthermore, you can then choose the plan that suits you the best. When you had to do this calculation manually, comparing different plans was plain and simple a headache. But that problem is solved now.
Manual calculations are always prone to errors. But, when you just have to put in some details and the calculator does the work for you, the chances of errors go down drastically.
Using a post office recurring deposit calculator will inevitably give you the perfect results every time without fail.
When you can already compare different plans in the calculator before actually investing in one, you can compare all investment plans accordingly.
Furthermore, you can calculate how much money you want to invest. You can also calculate the time period for which you want to invest it.
You can automatically save a lot of time when you use this calculator to calculate your investment. Gone are the days of manual calculations.
Current Post Office Recurring Deposit Investment Rates
At present, the rate of investment in the post office recurring deposit is 5.8% per annum. This interest rate of 5.8% is compounded in a quarterly manner.
The time period is for five years. What’s more, you can deposit a minimum amount of rupees hundred every month. As far as the maximum limit is concerned, there is no limit to the maximum amount.
You can keep a deposit of any amount, but keep in mind that it has to be a multiple of the number 10. In case you miss any deposit, bear in mind that you will have to pay a penalty of one rupee for every hundred rupees.
How To Open An RD Account In A Post Office
Recurring deposit accounts are extremely essential these days as they help you to save money without having to give out a lot.
You can very easily go ahead every month with saving a certain amount and not worry about not meeting the other expenses you have.
When it comes to opening a recurring deposit account in a post office, you can do it both in an online and offline mode. It is pretty simple.
Firstly, to open a recurring deposit account in a post office, you need to have a savings account there. If you have facilities on internet banking, the task is going to get far easier.
Consequently, you can very easily open a recurring deposit account through your phone. But, in case you do not have that, just visit the nearest branch you have. The staff members there will assist you through the entire process.
While availing of this service through internet banking, once you have filled in all the information, you just need to register yourself and then log in to your account.
What’s more, if you use the IPPB (India Post Payment Bank) application, you can even make your deposit payments each month through this app. You will not have to physically visit the post office anymore.
If and when you are going for the offline mode, you need to first visit that branch of the post office that you desire. Once you are there, you need to ask the staff to give you a recurring deposit account form.
Next, you need to fill out that form properly. Make sure there are no mistakes in the form. Once that is done, you need to submit that form along with the KYC documents and also the deposit slip.
As you must already know, a KYC is “Know Your Customer” documentation. It includes your details like your address, your identity proof, and likewise. The post office will need this along with the deposit slip to activate your recurring deposit account.
Steps for an online transaction:
Step 1 – Visit the website http://ebanking.indiapost.gov.in
Step 2 – You will need to enter your valid user-id and your legit password for login.
Step 3 – You will see a tab called “general service”. Click on that. Secondly, press on the tab called “service request”.
Step 4 – Next, you need to click on another tab called “new request” which you will find under the “service request” tab.
Step 5 – You will get many options there. Under that, you need to click on “RD Account - Open an RD Account”.
Step 6 – A new page will open as a result of the previous step. There, you will need to fill in all the required details that they are asking for. Next, fill in all the required details.
Step 7 – Once you have filled in all the required details, you will have to press the “submit” option.
Automatically, the next page will open with all your details already filled in. go through all of them carefully.
Whenever you log in using your correct username and password, all your details will appear. Whenever you do any new action on your account, those details will be uploaded to the website. It will take about one working day to get your website profile updated.
What are the Documents Required to open an RD Account in a Post Office Bank?
The bank will need a few documents for you to open a recurring deposit account in a post office bank. These documents are:
A form is needed to open an account in the post office.
Two passport-size colored photographs. It should be a current picture of you.
Your permanent address proof.
Your legitimate identity proof. It could be your passport, your driving license, your Aadhaar card, your pan card, etc.
An identification proof in order to verify at the time when the account will be opened.
You will need to select a witness and a nominee. That will complete all the formalities. Only when you supply the post office bank with all of these above-mentioned documents, will the post office allow you to open a recurring deposit account.
Frequently Asked Questions
Q1. How is RD maturity calculated in a post office?
You can very easily calculate the recurring deposit maturity in a post office with the help of a recurring deposit calculator.
Furthermore, this calculated app will enable you to calculate your maturity amount within seconds. Next, you only need to input the variable in the app and the app will do the rest.
What’s more, you need to feed in the interest rate that the post office bank is asking from you, and the time for the maturity of your account.
The application will do the rest. Finally, once you feed in the details, you will automatically get the maturity amount.
Q2. What is the RD rate of the post office?
The recurring deposit rate of post offices all around India is 5.8%.
No matter in which post office bank you open your recurring deposit account, they will charge you the rate of 5.8%. Moreover, based on this rate and your tenure, your respective maturity amount will be calculated.
Finally, this rate of interest, which is 5.8% is usually quarterly compounded.
Q3. Is the post office good for RD?
The post office is a very good place to open a recurring deposit account. In the post office, a recurring deposit account comes with a period of five years for maturity.
The lowest monthly deposit is only rupees hundred. However, there is no upper limit for monthly deposits. You can deposit up to any amount you want.
All you need to do is submit an application to the post office bank. You can do that online through an internet banking app, or you can visit the post office branch physically to open an account.
Finally, know that a post office recurring deposit account is not only safe, but also helps you to save a certain sum of money at your own pace.
Q4. Can I close my post office RD account before maturity?
Yes, of course, you can close your post office recurring deposit account before maturity. But there is a certain rule attached to it.
Before the time for maturity is over, if you want to withdraw your recurring deposit account, you can withdraw a certain part of it. However, you cannot withdraw the entire sum.
At one time, you can withdraw up to half the entire amount, which is around 50% of the sum that you have deposited.
However, you have to keep in mind that, for you to be able to withdraw a certain sum before maturity, your account needs to be properly active for a period of one year.
Q5. What is the penalty for premature closure of RD in the Post Office?
Though you can close a recurring deposit account prematurely in the post office, there is a penalty for it.
The penalty in the case of a delayed payment of the installment of the recurring deposit will be 1.50 rupees for every 100 rupees per month.
Consequently, the bank will do the calculation in a way that for the entire amount of money you deposit, they will charge 1.50 rupees as a penalty for every 100 rupees of that deposit.