Recurring deposit investments are not eligible for tax savings under Section 80C of the Income Tax Act. The interest earned on recurring deposit schemes is subject to taxation at the individual's applicable income tax slab rate. Moreover, a Tax Deducted at Source (TDS) of 10% is applicable on the interest income (20% if the PAN card is not provided). The TDS threshold is set at INR 40,000 (INR 50,000 for senior citizens). It's crucial for investors to consider the tax implications when planning their investments in recurring deposits.

Does Post Office provide Loan against RD?

Yes, the Post Office allows individuals to avail loans against recurring deposit accounts. Post offers loans up to 90% of the deposit amount, and the recurring deposit account serves as collateral for the loan. While this provides a convenient option for obtaining funds, it's essential to note that the interest rate on the loan is typically higher than the interest rate earned on the RD. Post Office offers various loan products, including loans against property, business loans, and education loans, utilizing an RD account as security. To estimate loan EMIs and compare scenarios, individuals can use tools like the Stack Wealth's loan EMI calculator, which works for car loans, home loans, and personal loans.

Is there a Premature withdrawal facility of recurring deposits available with Post Office?

If a depositor misses six consecutive installments in a Post Office recurring deposit account, the account is subject to premature closure. In such a situation, the balance in the account is paid to the account holder, and the recurring deposit account is closed prematurely. It's important for depositors to adhere to the regular installment payments to avoid premature closure and ensure the continuity of the recurring deposit account. The premature closure option provides flexibility for individuals who may need to close the account before the scheduled maturity date.

How to close an RD account in Post Office through online?

To close an Post Office RD account, follow these steps: Log in to your Post Office account using www.indiapost.gov.in/. Navigate to the e-RD(electronic Recurring Deposit) tab. Select the deposit account that you want to close. Click on the Close A/c (Close Account) tab. Complete the account closure process by clicking on the Proceed button. By following these steps, you can initiate the closure of your Post Office RD account through the online banking portal. Make sure to carefully follow the instructions provided on the website during the account closure process.

What are the documents required to open an RD account in Post Office?

When opening a recurring deposit account with Post Office, you will need the following documents: Account opening form: Fill out the form completely and sign it. Recent passport size photograph: Provide a recent passport-sized photograph. KYC Documents for Individuals & Companies: Submit documents such as PAN Card, Passport Copy, Aadhar Card, Voter’s ID, and Driving License for KYC verification. For HUFs (Hindu Undivided Families): Provide HUF declaration deed, bank statement of HUF, and a self-attested PAN card. For Partnership Firms: Submit Certificate of Incorporation, Partnership deed, and ID proofs of all authorized signatories. Ensure that you have all the required documents in order to facilitate a smooth account opening process with Post Office.

Post Office RD Calculator - Post Office Recurring Deposit Calculator Online India

Post Office Recurring Deposit Calculator

The Post Office Recurring Deposit (RD) is a popular savings scheme offered by the Indian Government, allowing individuals to save a fixed amount of money every month for a predetermined period. The scheme provides a fixed interest rate ranging from 5.8% to 6.8%, depending on the deposit's tenure. Calculating savings and returns manually can be challenging, which is why our Post Office RD Calculator proves valuable. This tool enables users to effortlessly compute savings based on investment amount, tenure, and interest rate, facilitating effective financial planning for the future. With our calculator, you can conveniently plan and secure your financial goals.

How to Use the Post Office RD Calculator

Utilizing the Post Office RD Calculator is a straightforward process. Just follow these steps:

Step 1: Input the monthly investment amount

Enter the monthly amount you intend to invest in your Post Office RD.

Step 2: Input the Rate of interest

Provide the interest rate offered by the Post Office for RD accounts.

Step 3: Input the time periodSpecify the tenure of your Post Office RD account in either months or years.

The calculator will then furnish you with the following information:

Invested amount

Projected returns

Final Value

How to Calculate Post Office RD Interest Rate?

The interest on Recurring Deposits (RDs) is determined by post office and varies with the investment tenure. RD interest is compounded quarterly after an initial period of earning simple interest.

For example, if an investor starts an RD in June, they earn simple interest until September, after which interest is compounded quarterly. The quarters for RD investments are April to June, July to September, October to December, and January to March.

The formula for calculating Post Office RD interest and maturity value is:

M=R*[(1+i)^(n-1)]/(1-(1+i)^(-1/3))

Where, M = Maturity value

R = Monthly Instalment

N = Number of Quarters (tenure)

i = Rate of interest

For instance, if you deposit Rs. 10,000 monthly for 5 years at a 5.8% interest rate

M = 10000[(1+5.8)5 – 1]/1-(1+5.8)(-1/3)

This results in a maturity amount of Rs. 6,96,967, indicating an interest of Rs. 96,967 on the total deposit of Rs. 6,00,000.

Benefits of Using the Post Office RD Calculator

The Post Office RD Calculator offers several advantages:

Accuracy: It provides precise calculations of savings and total interest earned, reducing the chance of errors.

Convenience: Users can access the calculator from anywhere, eliminating the need to visit a physical Post Office branch.

Time-saving: The tool swiftly delivers instant calculations, saving users time and effort compared to manual computations.

Comparison: Users can easily compare savings and returns under various scenarios involving different investment amounts, tenures, and interest rates, aiding in informed investment decisions.

How to Open a Post Office RD Account

Opening a Post Office RD account in India involves the following steps:

Visit the Nearest Post Office: Go to the nearest Post Office to initiate the process.

Fill the Application Form: Complete the application form for the Post Office RD account and submit it along with the required KYC (Know Your Customer) documents.

Deposit the Amount: Deposit the desired amount you intend to save every month into the Post Office RD account.

Receive the Passbook: Upon completion, you will receive a passbook for your Post Office RD account. This passbook contains details of your monthly deposits, interest earned, and the maturity value.

Post Office RD Calculator

Forecast the maturity value of your Recurring Deposit (RD) with ease using our Post Office RD Calculator.

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Understanding Post Office RD Calculator

Post Office Recurring Deposit Calculator

How to Use the Post Office RD Calculator

How to Calculate Post Office RD Interest Rate?

Benefits of Using the Post Office RD Calculator

How to Open a Post Office RD Account

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