National Saving Recurring Deposit Account (RD)

Fixed monthly deposit (Denomination)

• Maturity Period – 5 years

– Can be prematurely closed after 3 years

• Minimum Denomination is Rs. 100/-

• Subsequent Denomination – In multiples of Rs. 10/-

• Maximum - No limit

• No restriction on number of accounts

• Account can be continued for further 5 years with or without deposits

• Can be opened by cash / cheque / any electronic mode

• Default fee / Rebate applicable

• Only one withdrawal (loan) allowed

• Deposits through Direct /MPKBY Agents

• Nomination process as like Savings Account

• Auto transfer of deposits from SB accounts

Type of Accounts

· Single A/c- An Adult, a minor who has attained 10 years of age, guardian on behalf of a minor & guardian on behalf of a person of unsound mind can open Savings A/c

· Joint A/c- upto three adults can open a/c jointly

Joint A : Operated by all depositors jointly

Joint B : Operated severally

Rebate for advance Deposits

Advance Deposits

including current month

Rebate for

Denomination of Rs. 100/

6 Months

Rs. 10/-

12 Months

Rs. 40/-

All Advance deposits made in different dates in a month are eligible for rebate

Subsequent Deposit Condition

Accounts opened

Last Date

without

Default Fee

Between 1st and 15th

15th of each month

Between 16th and Last day of the

month

Last working

day of each

month

Default

If monthly deposits are not paid within the last date – Default Fee – Rs.1 for Rs. 100/- Dn.

• Four Defaults are allowed

• If exceeds 4 defaults, account becomes discontinued,

– Should be revived within 2 months, from the month of 5th default

– If not renewed, no further deposit / part withdrawal allowed

Total number of defaulted months	Remark
Four	1. All defaulted months 2. All defaulted + current month
Five	All defaulted months in lump sum
Six	Discontinued Account – Can’t be revived

Withdrawal

Only one Interim Withdrawal during the entire 5years period

• Withdrawal is allowed

– Only after ONE year from the date of opening.

– At least, twelve deposits should have been paid.

– If the account is not a discontinued one

• Maximum 50% of the amount at credit is allowed as withdrawal.

• Amount of withdrawal should be divided by Rs. 10/-.

Interest will be charged as per the interest fixed for the RD interest rate + 2 % on the date of withdrawal

The withdrawal amount can be repaid in one lump sum or in installment.

Repayment of Withdrawal

Depositor may repay the amount of withdrawalin equal installments or in lump sum.

• The repayment should be in equal monthly installments and in multiples of Rs.10.

• Repayment of withdrawal should be made along with monthly deposits only.

Premature Closure (PMC) of RD Account

PMC is allowed only

– After three years from the date of opening

– After expiry of advance deposits period, if there are advance deposits.

– Discontinued accounts can also be closed prematurely

• Interest will be allowed at the rate of Savings accounts.

– Default fee paid if any will be refunded to the depositor; interest on withdrawal, if any, paid by depositor will also be refunded

Closure of RD Account (Maturity)

Closure is allowed after 5 years

Extension of RD Account

Option to continue the account beyond the maturity period

• Continued with or without deposits

• No separate option is necessary

• Can be closed at any time

• Amount as prescribed in the table becomes payable

Protected Savings Scheme

• Unique Feature in RD Account Scheme

• Benefit is restricted to a maximum of the maturity value of Denomination 100/-

• Age of the depositor at the time of opening the account should be between 18 and 55 years

• The account should have been paid for 24 months.

• 2 years should have been completed.

• During first 24 months, no withdrawals should have been taken.

• Account should not be a discontinued one.

• Claim should be preferred within one year from the date of death of the depositor.

• The Head Postmaster will settle the claims

National Saving Recurring Deposit (RD)

Opening of Account	Minimum Amount Rs.100
Multiples of	Rs.10
Maximum Amount	No limit
Maturity Period	5 years
Defaults	4 defaults allowed.	If there are more than 4 defaults account is treated as discontinue and shall be revived within 2 months from 4th default Revival fee @ 1 Rs for every 100 Rs is applicable.
Advance deposits	Allowed upto 5 years	For every 6 months Rs.10 ( 100Rs. Denomination) For every 12 months Rs.40 (100 Rs. Denomination)
Pre Mature Closure	Allowed expiry of 3 years.
Extension	Allowed up to a maximum of 5 years.	With or without deposits.
Protected savings scheme	Age 18 to 50	Not a discontinued account. 24 months should becompleted No defaults allowed for first 24 months No loan has been made in first 24 months Allowed for a maximum 100 denomination account for more than one account Should be applied within a 1 year from the date of death of depositor
Loan	Allowed after 1 year	Rate of interest - Simple Interest @ RD account rate of interest + 2 % Repayment of loan in one lumpsum or in installments. Repayment of loan in multiply of rupees 10