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'

Cryptocurrency prices today: Bitcoin, Ethereum rise marginally; most others trad

Bitcoin, was trading at $19,130, up nearly 0.43 percent, steering away from its past seven days routine. Ether, the second largest token, rose by 2.15 percent to 1,045 at 17:00 IST.

Your Questions Answered: Should you choose debentures over debt mutual funds, or vice versa?

Here we aim to address some of your most pressing personal finance queries. Read further to make the optimal use of your money!

ITC shares hit 52-week high; up 30% this year; analysts see more upside

<ul><li>The stock has been witnessing remarkable traction this year while the market has been under pressure. The stock of ITC has gained about 30 percent this year so far (YTD) against a 9 percent fall in the benchmark Sensex.</li></ul>

Reliance cracks 7% as govt imposes surprise duty on crude exports

stock markets

Higher crude oil prices have boosted the refining margins of oil refiners and RIL is one of the key beneficiaries of it.

<ul><li>Higher crude oil prices have boosted the refining margins of oil refiners and RIL is one of the key beneficiaries of it.</li></ul>

Titan sheds 6% in intra-day deals as govt hikes gold import duty to strengthen falling rupee

Titan fell as much as 5.9 percent to its day's low of  <span class='webrupee'>₹</span>1,827 in intraday deals on BSE. However, the stock ended flat, up 0.2 percent at  <span class='webrupee'>₹</span>1,926 as against a 0.2 percent decline in BSE Sensex.