The Post Office Recurring Deposit (RD) scheme is a popular five-year investment plan. When you open an RD account, a fixed date is set for your monthly installment payments.
Failing to pay on time incurs a penalty, and missing four consecutive installments results in account closure. However, if you wish to revive your closed RD account, here’s how you can do it.
Reviving a Closed RD Account
To restart a closed RD account, follow these steps:
- Application within Two Months: Submit an application to revive your RD account within two months of missing the fourth installment. If you miss this two-month window, the account will be permanently closed.
- Pay Outstanding Installments and Penalty: To reactivate the account, you must pay all outstanding installments along with the applicable penalties.
Important Note on Premature Closure
An RD account cannot be closed before completing three years. If you close the account even a day before maturity, you will only receive the interest applicable to the Post Office savings account, which is currently 4%, compared to the RD interest rate of 6.7%.
Eligibility for Opening an RD Account
Adults: Any individual who is 18 years or older can open an RD account.
Minors: Guardians can open an RD account on behalf of a child. Children above 10 years old who can sign their name are eligible to open an RD account in their own name.
Joint Accounts: Two or three individuals can also open a joint RD account.
By understanding the revival process and the eligibility criteria, you can make informed decisions about maintaining and managing your Post Office RD account.
