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5 Year Post Office Recurring Deposit Account Plans

Post offices offer help to those of us who want to save small amounts of money every month and these are such small amounts that you don’t even have to go to the bank for these transactions.  This is a safe and secure way to save money and this is more ideal to teach our children my teaching them to save the small amounts of pocket money that they receive.  Even today we see many senior citizens put money in such post office savings schemes as they think that this is the most secure way of savings.

Post office plans are really good for people with big or small amounts of money.  The period for any amount of recurring deposit is five years and it is general rule that these deposits are not withdrawn within the span of the five years.  Even in case of emergencies it is advised to not withdraw this.  However, after a completion of three years, the public can think of withdrawing partial amounts of money from their savings.  Though this rule is there, it is best to avoid doing this as the amount that you will be saving would diminish and along with it the interest acquired on it.

The rate of interest is 8.3% for any amount that is invested in the 5 year plans of the post office.  So, if for an example, one of us invests ten rupees every month for a period of five years, then the accumulated amount at the end of five years would be six hundred rupees whereas the depositor would get close to three hundred and fourteen rupees when he completes the five years. 

The monthly installments can be paid any time during the month.  The 5 year plans of the post office allow two chances of default to its members.  So if you default more than twice in your post office plans, then your savings scheme is considered as discontinued.  If that happens, then you will have to again go back to the post office authorities, pay up a small interest for the defaulted amount and then start paying up again.   On the other hand if you pay up your installments before they are due, then the post office will give you a rebate as well.  So, it is up to the individuals to make use of these post office plans and make maximum use of it.

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