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Post Office RD is for 5 years. Whenever you open an RD account, the date for paying the RD installment is fixed at the same time. If you do not pay this installment on time, then you have to pay a penalty. But when you are unable to deposit four consecutive installments of RD, your RD account is closed. But if you do not want to close the RD, but for some reason the account is closed, then you can restart it. Know here what is the process to restart the closed account.
How to re-activate a closed account
To re-activate a closed RD account, the customer has to apply. But this application has to be given within two months of 4 defaults. If you do not apply to re-activate the account during this period and 4 defaults are completed, then the account is completely closed. To re-activate a closed RD, you first have to deposit the outstanding installments of the previous month along with the penalty.
Fixed interest is not paid on premature closure
Post Office RD cannot be closed before 3 years. If you close the post office account even a day before the maturity period, you are not given the interest of RD, but you are given interest equal to the post office savings account. At present, 4 percent interest is being given on post office savings account. Whereas the interest rate of RD is 6.7 percent.
Who can open an RD account?
Any person who has attained the age of 18 years can open an RD account for himself in the post office. At the same time, the guardian can open this account in the name of the child. If the child is more than 10 years old and can sign with the same name, then he can open a post office RD account in his name. Apart from this, two to three people can also open a joint RD account for themselves.