Latest News
-
Rs 55/Share Dividend Announced: Multibagger Refineries PSU Declares 72% Jump In Q4 Profit -
PayU Gets RBI's In-principle Nod To Operate As Payment Aggregator -
Rekha Jhunjhunwala Portfolio Stock Jubilant Ingrevia Hits Record High; More Upside Ahead? -
Gold Prices: 10 Grams Of 22-24 Carats Rise By Rs 9,500 To Rs 10,600 From 2024 Lows; Strategy For Buying -
JNK India IPO: Retail Investors Lead With Subscriptions On Day 2; GMP Hints Premium Listing; Check Status -
Rs 60 Dividend: Multibagger Small Cap Power Stock To Consider Dividend Again On May 2 -
40000% Returns In 10 Years: This Microcap Dividend Paying Multibagger Stock Acquires Square Port Shipyard -
Gold Prices India: 10 Grams Of 22K Yellow Metal Jumps After Falling By Rs 2000 -
New Safety Check System for Cooking Gas Connections Rolled Out Amidst Delivery Boy Grievances; Reports -
Okay Play India Posts 12.79% Revenue Growth In Q4 After 1:10 Stock Split Approval
Post Office RD Vs Monthly Income Scheme: Know What They Differ
Post office schemes, administered by the Ministry of Communications, deliver nine different small saving schemes. These schemes are very prominent among investors, in particular, because they are government-backed sovereign guaranteed. Fixed returns on investment are provided by various schemes offered by India Post. Both Recurring Deposit (RD) and Monthly Income Scheme (MIS) are offering an interest rate of 5.8 and 6.6 per cent, respectively, for the current quarter among all other saving schemes that the Post Office offers. The interest rates are not market-linked and therefore generate guaranteed returns. Know what they deliver and how they work if you are puzzled between both these schemes.
Minimum and maximum investment threshold
- There is no maximum contribution cap in the context of a recurring deposit. The depositor can make a minimum deposit of Rs 100 per month or any amount in multiples of Rs.10.
- On the other side, the maximum investment cap that an individual can make is Rs 4.5 lakh in a single account and Rs 9 lakh jointly in the case of the Monthly Income Scheme. Remember that it is important to make these investments in multiples of Rs 1,000.
Interest Rates
- The interest rates are compounded on a quarterly basis in the context of recurring deposit. It currently provides 5.8 per cent interest rate per annum.
- Interest is payable monthly on the Monthly Income Scheme. At present, 6.6 per cent per annum is provided by this scheme. Both these schemes offer higher interest rates than what most of the banks are offering presently if we consider their fixed deposits.
Premature withdrawal facility
- Depositors can withdraw up to 50 per cent of the balance after 1 year from their RD account. The depositor can also reimburse the amount of lump sum along with interest at any point during the tenure of the account.
- An investor can prematurely encash after 1 year from his or her MIS account. If someone withdraws before 3 years, a penalty of 2% will be charged accordingly. It can be withdrawn at a discount of 1 per cent of the deposit after 3 years.
Maturity
- Post office RD scheme comes with a maturity period of 5 years and also can be extended for a further of 5 years. By submitting an application at the PO account office, a depositor can do the same.
- The Monthly Income Scheme has a maturity period of 5 years. In case the primary account holder dies before the maturity period the account will be closed and the nominee / legal heirs will be refunded.
