How to Calculate Return on Post Office RD Investment?

139

4 min read

Updated on Apr 27, 2023

Have you ever come across a situation where your family members started convincing you to open an RD account since you are financially independent now? Well, it happens to almost all of us. To put things honestly, as soon as you get a job, opening a Recurring Deposit (RD) is one of the best things that you can do. And if you want to get a bit more interest in your RD account, you choose Post Office over any bank.

A Post Office can be found in almost every town and city in India. You can find the nearest post office and open an RD account at your convenience. Well, before we delve deeper, we should first try to know what an RD is.

Visual Stories by PayBima

What is an RD?

Usually called RD, Recurring Deposit is a term deposit that will enable you to deposit an amount of money as per your choice, every month. You will get the kind of flexibility that you want while saving some money. The minimum tenure of a Recurring Deposit account is 6 months.

GRP Plan from PayBima

Eligibility criteria to open a Recurring Deposit account

Before you open an RD account, you must check if you match the eligibility criteria or not. Some of the common eligibility requirements are mentioned herein below:

  • Anybody who is more than 10 years of age can open an RD account
  • If the individual is below 10 years of age, he/she will be considered a minor. Therefore, can open the account under the guardianship of a legal guardian
  • Commercial organizations, corporates, and proprietorships can also open an RD account
  • A government organization can also open an RD account.

PayBima Khushi Ka Tohfa

Documents required for opening an RD account

You would be required to provide some documents while trying to open an RD account. Here are some of them mentioned below:

  • An application form that you can get from the Post Office. You have to duly fill it up
  • Your recent passport-size photographs
  • Identity as well as address proof
  • KYC documents.

As you plan to open an RD account, you must first use the post office RD calculator for Post Office. Using the Post Office Recurring Deposit calculator for Post Office will help you to understand the amount of money that you can get within a certain tenure. You will also be able to find out the rate of interest that you will get by investing in an RD account.

How to use an RD calculator for Post Office?

The Recurring Deposit calculator for Post Office is an online tool that you can use to find out the rate of interest as well as the maturity amount that you are going get out of the account. The tool is user-friendly and anybody can use it without any difficulty. All that you have to do is enter certain details in the calculator for Post Office. The details are herein below:

  • The amount that you are going to invest on a monthly basis
  • The current interest rate
  • The tenure of the Recurring Deposit account

Once you enter all the details, the maturity amount will be displayed on your screen.

Benefits of using a Recurring Deposit Calculator for Post Office

As you use an RD calculator for post office, you will experience many benefits. Some of them are as follows:

  • You can save time and energy
  • It gives accurate results
  • It is easy to use
  • You can plan your future.

Top General Insurance Companies 2023 India

Recurring Deposit for Senior Citizens 

You must be aware of the fact that Recurring Deposit Accounts can be opened for senior citizens as well. The rate of interest provided to senior citizens for an RD account is much more than general accounts. Under an RD account for senior citizens, the tenure and minimum amount are fixed by the bank. The interest on a Recurring Deposit account is compounded on a quarterly basis. An additional rate of interest of 0.50% to 0.80% is offered to senior citizens.

Now, if you want to open an RD account at a Post Office near you, the foremost thing that you can do is use the RD calculator for Post Office. Once you have an idea of the maturity amount and the rate of interest you are getting, you can accordingly invest the amount that you want.

Related Articles by PayBima

Found this post informational?

Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.

Also, check out the PayBima’s Guide and Glossary section –

 

 

View this post on Instagram

 

A post shared by paybima (@paybima)

FAQs: How to Calculate Return on Post Office RD Investment?

What is better, an RD or an FD?

Although the maturity amount of an FD is higher than an RD, you can choose to invest your money in an RD account since it can be done for a shorter period.

Is RD's interest rate in Post Office higher than Bank's?

Yes, the RD interest rate that you get in Post Office is always higher than the one that you get in a bank.

Can I break my post office RD?

Yes, you can withdraw 50% of the amount in case of an emergency. However, you can do it from the date of opening the account.

Other Investment Products

Mar 20, 2023
SHARE THIS ON
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back