Post Office RD: What will happen if you are unable to pay the RD installment on the due date? know here...

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 tenures, in the post office the RD scheme is for 5 years and the interest on it is also quite good. Currently, interest is being given at the rate of 6.7%.

In RD, you have to deposit a fixed installment by a fixed date every month. 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 you do not deposit many installments continuously. Know here how many installments of the post office bounce and the account is closed. If some installments are missed during the tenure of RD, can that RD be continued? Know here

RD account gets closed for not paying how many installments
If you do not deposit the installment of RD 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 get the closed account reopened.

For this, you are given a grace period of two months. In the meantime, you have to apply to restart the RD. On restarting the closed RD, you first have to deposit the outstanding installments of the previous month along with the penalty. But if you do not give any application within two months, then it is completely closed.

Option to continue RD without paying installments
If you feel that your financial condition is not good and you are facing difficulty in paying installments continuously for some time, then you can continue your RD even without paying installments. For this, you have to extend the maturity period of the RD account. But you have to do this work after understanding the situation beforehand. You do not get this option after not paying installments for four months. But keep in mind that the extension time of maturity period can be extended only for the number of months you are not able to pay the installments.

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