paragraph

<p>Risk-free in nature, the Post Office Recurring Deposit (Post Office RD) is a scheme catering to the mid-term savings requiring the depositors to park their investment at least for a period of five years. The scheme required the depositors to deposit a fixed amount at regular intervals, the interest is accrued to the depositors and compounded on a quarterly basis.</p>

<h3>Opening an account</h3><p>The beneficiary must be an Indian citizen and aged 18-years or above. Those between 10-18 years of age would need a parent or guardian to open a joint account with them. Opening a Post Office RD account is simple, you just need to submit the RD form along with a pay-in slip with the initial deposit.</p>

<p>The minimum amount to open an account is set at Rs. 10 per month, and there is no cap on the maximum amount that one can deposit at fixed intervals.</p>

<p><a href="https://mintgenie.livemint.com/news/personal-finance/top-6-government-investment-schemes-for-the-low-risk-investors-151640254421042" target="_blank">READ MORE: Top 6 government investment schemes for the low-risk investors</a></p>

<h3>Tenure</h3><p>The tenure of a Post Office RD is five years which is further extendable by another 5 years, making the total tenure period of 10 years. The deposits need to be made on a monthly basis beginning from the date that the account was opened on.</p>

<h3>Rate of return</h3><p>The present interest rate applicable to the Post Office RD is 7.2% per annum compounded quarterly. The returns on such an account can be calculated using the simple compounding interest formula.</p>

<h3>Tax exemptions</h3><p>The Post Office RD scheme can be exempted from tax deduction under Section 80C of the Income Tax Act and an individual can claim up to Rs.1.5 lakh per annum, however, the interest generated is subject to tax deductions.</p>

<p>Depositors can also avail of rebate facility for the investments that were made at least six months in advance. It is important to note that the rebate will only be made if the deposited amount is equal to the installments of six months.</p>

<p><a href="https://mintgenie.livemint.com/news/personal-finance/what-is-post-office-monthly-income-scheme-pomis-all-you-need-to-know-151639723218149" target="_blank">READ MORE: What is Post Office Monthly Income Scheme?</a></p>

<h3>Premature withdrawal</h3><p>Premature withdrawal can be availed only after a period of one year. The depositor can withdraw 50% of the investment after 1 year but a 1% charge will be levied on the amount being withdrawn.</p>

<p>The recurring deposit is viewed as an excellent measure to create a financial cushion as it inculcates the habit of saving and helps in achieving long-term financial goals.</p>

What is Post Office Recurring Deposit Scheme? MintGenie Explains

In the Post Office Recurring Deposit scheme, investors are meant to deposit a fixed amount at regular intervals. Read further to know this in detail.

Investing in a 'bearish' market? Here are 4 key strategies

RBI unlikely to relax stake-dilution timeline for new buyer of IDBI Bank: Report

New SIP openings in May lowest in 12 months

PGIM India Flexi Cap Fund has given nearly 15% returns in the past 5 years; Should you invest? 

As markets appear gloomy, is it wise to explore dividend yield funds now?

9 public sector banks offer the highest interest rates on savings accounts

Does Voluntary PF offer a viable retirement saving option?

Auto, home and personal loans become expensive with banks raising rates

'Life insurers can launch products without prior nod'

Markets Last Week: 9 of top 10 firms saw market cap rise of  <span class='webrupee'>₹</span>79,798 crore; TCS, Infosys biggest winners; See full list

The market valuation of TCS jumped  <span class='webrupee'>₹</span>17,215.83 crore to  <span class='webrupee'>₹</span>12,39,997.62 crore. Infosys added  <span class='webrupee'>₹</span>15,946.6 crore taking its valuation to  <span class='webrupee'>₹</span>6,86,211.59 crore.

Gold imports fall 17% in April-October to $24 billion

Imports of the yellow metal stood at USD 29 billion in the corresponding period of 2021-22. The imports during October this year also contracted by 27.47 per cent to USD 3.7 billion, the data showed.

Rupee should stabilise once US reduces speed of its rate increases: Economics Nobel winner Douglas Diamond

Diamond, a Merton H Miller Distinguished Service Professor of Finance at the University of Chicago's Booth School of Business, shared the Nobel Prize with former US Federal Reserve Chair Ben Bernanke and US-based economist Philip H Dybvig for their research into the fallout from bank failures.

FPIs flock to Indian market; buy shares worth  <span class='webrupee'>₹</span>31,630 crore in November

Rising expectations of aggressive rate hike cycles nearing an end on relatively easing inflationary curve, better than expected US macroeconomics data and resilience of the Indian economy compared to global counterparts are also driving FPI inflows.

What is a deposit insurance? All you need to know

The insurance of deposits in banks is called deposit insurance. Read further to find out how much do banks owe us in case they go bankrupt