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Many types of schemes are run in the post office. 5-year recurring deposit (RD) has always been a favorite investment option for people. Through RD, you can save a lot of money by making small savings. Although banks have RDs of different periods, but in the post office, the RD scheme is for 5 years and the interest on it is also very good. At present, interest is being given on it at the rate of 6.7%.
In RD, you have to deposit a fixed installment every month by a fixed date. If you do not deposit the installment by the due date in any month, then you have to pay a penalty for it. At the same time, the account can also be closed if several installments are not deposited continuously. Know here how many installments of post office get bounced and the account gets closed. If some installments are missed during the period of RD, can that RD be continued? Know here
If you do not deposit the RD installment by the due date in any month, then you have to pay a penalty at the rate of 1% per month. But when you are unable to deposit four consecutive installments of RD, then your RD account is closed.
However, you can also reopen a closed account.
For this, you are given a grace period of two months. Meanwhile, you have to apply to restart the RD. On restarting a closed RD, you first have to deposit the outstanding installments of the previous month along with the penalty. But if you do not submit any application within two months, then it is completely closed.
If you feel that your financial condition is not good and you are facing difficulty in paying the installments continuously for some time, then you can continue your RD even without paying the installments.
You can keep it. For this you will have to extend the maturity period of the RD account. But you will have to do this work after understanding the situation beforehand. You do not get this option if you do not pay the installments for four months. But keep in mind that the extension time of the maturity period can be extended only for the number of months for which you are not able to pay the installments.