BANKING AFFAIRS

Detailed explanation-1: -To open a Recurring Deposit account, a minimum amount of Rs. 10/-per month or any such amount in multiples of Rs. 5/-can be deposited by a customer.

Detailed explanation-2: -Both the minimum and the maximum balance that may be kept are Rs. 500. The person may only open one account as a single account. The maximum amount that can be placed into a post office savings account is unlimited.

Detailed explanation-3: -(i) Account can be opened with minimum of Rs. 1000 and in multiple of Rs. 1000. (ii) A maximum of Rs. 4.50 lakh can be deposited in a single account and 9 lakh in Joint account. (iii) In a joint account, all the joint holders shall have equal share in investment.

Detailed explanation-4: -The interest rates of RD in the post office are revised regularly every year. For the current fiscal year, the RD Interest rate of the post office is 5.8% p.a. which is compounded quarterly. The minimum amount for opening of account is Rs. 100 per month or any amount in multiples of Rs.10 and there is no maximum limit.

Detailed explanation-5: -You are allowed to close the Post Office Recurring Deposit (RD) at any point of time after 3 years of completion. But you will not receive the RD interest rate on such premature closure account.