The post office recurring deposits is the financial service of the Indian post in which a citizen of India can save their money with a post office regarding small monthly instalment for the period of maximum 60 months that earn good rate of interest on the saving wealth.
Indian Post office department offers different financial services to the resident of India to save their money in the post office financial services department. There many benefits of saving the money with Post office recurring deposit post account such as:
Protection of the Capital: Investing the money in post office recurring deposit is fully protected and guaranteed by the government of India. The money saved is invested under the supervision of the Government of Indian that ensures the protection of your money and no market risk is associated with the savings of recurring deposits. You can calculate your recurring deposits in this link to invest today.
Protect the saving from inflation: Though post office recurring deposit does not guarantee the saving of the investment from the inflation at any rate, but still, it promises a fixed and assured return on the investment. In the situation when the inflation rate of the market is higher than the guaranteed rate of return by the post office, in that customer may have to face some consequences of higher inflation rate, but on the other hand when the inflation rate is lower than the predefined rate of interest on recurring deposit, the money saved with the post office is saved from being affected by the rate of inflation.
Guarantee of return: The post office recurring deposit account guarantees the return on saving at the rate of 7.40% annually which is to be re-addressed shortly in any situation.
Though the locking period for the amount saved n the post office recurring deposit is locked for the period of 60 months, but it can be withdrawn to meet the sudden demand for the money for their expenses, but account holder has to pay some fee and penalty to withdraw the money before maturity time.
Credit Rating: The post office recurring deposit account is a product of government, of India and has no private control and does not require any commercial credit score.
What documents are the required to open PORD?
Opening a post office recurring deposit account is very processed with some documents availability as given bellow.
1. Account Opening Form: This is the first and the most basic document which is required to open a recurring account with the post office of India.
2. Passport size photograph: Account holder is required to hand over two passport size photographs to the account opening department.
3. Address and Identity proof of the account holder such as Adhaar card, Form sixty or driving License and many others.
Any person is eligible to open a post office recurring deposit account, who is the resident of Indian with legal proof. There are certain other eligibilities to open recurring deposit account in Indian post office.
1. Any single male or female who attained the age of adult
2. Two adult joint account. (The amount saved in the joint post office recurring account is to be paid to both or any of the survivor or them). A joint account can also be converted into the single account and single account can be converted into joint account.
3. A guardian on behalf of minor or person with unsound mind.
4. A minor has attained the age of 10 year in his or her own name can also open the recurring deposit account with Indian post office.