Both Post Office Fixed Deposit (FD) and Recurring Deposit (RD) schemes are backed by the Government of India, ensuring stable returns and capital protection. While RD is perfect for disciplined monthly savers, FD is a better fit if you have a lump sum and prefer one-time investing. Let’s break it down to help you make the right choice.
What is a Post Office Recurring Deposit (RD)?
A Post Office RD is a 5-year savings plan where you deposit a fixed amount every month. It’s ideal for individuals looking to cultivate a habit of saving regularly. Interest is compounded quarterly and paid on maturity, offering steady capital growth over time.
Key Features of Post Office RD
- Fixed 5-year tenure – Encourages medium-term saving goals like college fees or travel.
- Monthly deposits starting at just Rs. 100 – Anyone can begin saving, even students and new earners.
- Quarterly compounded interest – Grow your money faster with consistent deposits.
- Premature withdrawal after 3 years – Offers partial liquidity during emergencies.
- Loan facility up to 50% of balance – Fund urgent needs without breaking your investment.
- Account transfer and nomination facility – Flexibility and succession planning in one.
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Types of Post Office RD Accounts
- Single Account RD – Perfect for solo investors building individual wealth.
- Joint Account RD – Suitable for families or partners working toward shared goals.
- Minor Account RD – Great for starting your child’s savings journey early.
Benefits of Post Office RD
- Government-guaranteed returns – Ideal for risk-averse investors.
- Low deposit threshold – Makes saving inclusive for all income groups.
- Loan facility – Helps manage cash flow without disturbing your savings.
- Long-term wealth creation – Best suited for planned financial goals.
Saving for your child’s future or a family goal? Bajaj Finance FD can help you!
Bajaj Finance offers FD options for minors and joint accounts, helping families save smartly together.Check FD Rates and start investing now!
Eligibility & Documents for Post Office RD
Eligibility:
- Resident Indians (individuals, minors aged 10+, joint accounts)
Documents:
- Aadhaar, PAN, or Voter ID for identity
- Utility bill or ration card for address
- 2 passport photos
- Filled RD application form
What is a Post Office Fixed Deposit (FD)?
Post Office FDs or Time Deposits are lump sum deposit schemes with guaranteed returns over a tenure of 1 to 5 years. You invest once and earn annual interest, which is compounded and paid annually. It’s best for investors with surplus funds who want capital safety and predictable returns.
Key Features of Post Office FD
- Tenure options from 1 to 5 years – Choose a timeline that matches your goals.
- Minimum deposit of Rs. 1,000 – Accessible for most Indian households.
- No upper limit – Great for large, safe investments.
- Premature withdrawal after 6 months – Maintain liquidity if needed.
- Automatic renewal & nomination facilities – Invest and forget, with peace of mind.
Want to grow your lump sum amount without risk?
Bajaj Finance FDs offer high interest of up to 7.30% p.a. and complete capital safety, with online booking in just a few steps. Check Eligibility now!
Types of Post Office FD Schemes
- 1-Year FD – Short-term savings with assured returns.
- 2-Year FD – Slightly higher interest for mid-term goals.
- 3-Year FD
