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Recurring Deposits- Select The Bank

About Recurring Deposits

A post office recurring deposit is part of the banking services offered by the post offices. The recurring deposit in post office is almost similar to a recurring deposit in banks barring few exceptions. The major exception is that recurring deposit interest rates in a post office recurring deposit are fixed unlike the bank recurring deposit where interest rates can vary on the discretion of RBI. At moneysuperbazaar.com, we also provide these differences between a recurring deposit in post office and a recurring deposit in banks, along with the details on all other post office investment schemes. We also have complete information on opening a post office recurring deposit, prevailing recurring deposit interest rates etc at Money Super Bazaar, some of which is presented here.

The maturity period of a post office recurring deposit is 5 years which can be extended later depending on your need. Basically your recurring deposit account will mature in 5 years but depending on your wish, you can continue the account for another 5 years. But for the first fixed tenure, you must make monthly deposits in your recurring deposit in post office. You can also close your account prematurely after 1 year and as per the prevailing recurring deposit interest rates, the maturity amount will be paid out. So basically the locking period is at least 1 year for a post office recurring deposit account.

As said, the recurring deposit account can be opened for a period of 1 year also, but of course the recurring deposit interest rates will be different depending upon the tenure. So based on the tenure, minimum prevailing recurring deposit interest rates are 6.25% for 1 year going up to 7.50% for 5 years.

A recurring deposit in post office can be opened individually or joint. There is no upper limit of monthly deposits but the lower limit or minimum amount to open a post office recurring deposit is 10 rupees. The best part with the recurring deposit in post office, like many other post office schemes is that since it is a government owned organization, your money is in safe hands with assured returns.

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