Do you want to know Post Office Recurring Deposit tax exemption 80C?
If yes then this post will help you that is Post OfficeRD comes under Tax exemption under 80C or not.
This post also covers the post office rd interest rate 2022, post office rd interest rate 2022 Calculator, and post office rd interest rate 2022 for 5 years.
RD interest rates 2022 calculator in excel is also provided here to calculate the maturity amount of an RD account in post office
Post Office Recurring Deposit tax exemption 80C?
No, the Post Office Recurring deposit scheme does not come under tax exemption 80C. It is not a tax-free scheme.
Investment and interest on the Post Office RD account are not eligible for tax exemption under Section 80C of the Income Tax, 1961,
The maturity amount of the post office RD account is taxable.
Post office rd interest rate 2022
As per the SB order no. 05/2022 and SB order 11/2022 issued by the Department of Post, the Post Office RD interest rate is 5.8% in 2022.
RD Interest rate is variable on a quarterly basis. The government of India issues an order for all national small savings scheme interest rates including Post Office RD interest rates.
Post Office RD interest rate from 01 April to 31 September 2022 is maintained as 5.8% per annum.
Invested money will be compounded on a quarterly basis in Post Office recurring deposit scheme.
Post Office RD Interest Rate History | |
Year and Month | Interest rate (per annum) |
April 2011 to November 2011 | 7.50% |
December 2011 to March 2012 | 8.00% |
April 2012 to March 2013 | 8.40% |
April 2013 to March 2014 | 8.30% |
April 2014 to March 2015 | 8.40% |
April 2015 to March 2016 | 8.40% |
April 2016 to September 2016 | 7.40% |
October 2016 to March 2017 | 7.30% |
April 2017 to June 2017 | 7.20% |
July 2017 to December 2017 | 7.10% |
January 2018 to September 2018 | 6.90% |
October 2018 to June 2019 | 7.30% |
July 2019 to March 2020 | 7.20% |
April 2020 to September 2022 | 5.80% |
Note: - The current Interest rate on the Post office RD scheme is 5.80% per annum.
Post Office RD Scheme 1000 per month
As per India Post official website, a total of 1.55 lakh post offices are working across India in rural and urban areas.
The post office offers various types of national small savings schemes for people. Recurring Deposit is one of the most popular post office savings schemes where people can invest their valuable money.
The main aim of introducing the Post Office RD scheme is to develop a habit of investing a small amount of money on monthly basis.
Post office recurring deposit scheme is also known as RD scheme. The maturity period of Post Office RD account is 5 years. You will get the maturity amount including interest after the 5 years from the date of opening of RD account.
Post Office RD Scheme Features
There are many features of an RD account. A list of all the amazing features of the Post Office RD scheme is as under-
- The minimum amount of investing on monthly basis in RD account is only 100 rupees. Each and every Indian can able to invest a small amount of money to invest in Recurring Deposit.
- There is no limit on the maximum investing amount. People can invest in RD as per their monthly savings.
- The maturity period of the Post Office Recurring Deposit scheme is 5 years. People can also extend tenure up to the next 5 years. It means the maximum tenure of an RD account is 10 years.
- A quarterly compounding facility is available in RD scheme. Invested money will be compounded on a quarterly basis.
- Post Office RD interest rates are variable as per the Government orders. Right now, the Post Office RD interest rate is 5.8% per annum.
- An advance deposit facility is also provided in RD national small savings scheme.
- An RD account can be transferred from one post office to another post office.
Post office rd interest rate 2022 Calculator in excel
You can download Post Office RD interest rate calculator 2022 in excel from the below link.
Click here to download
RD interest rate calculation
You have to use RD interest rate calculation formula to calculate the maturity amount of an RD account.
M =R[(1+i)n – 1]/1-(1+i)(-1/3)
M = Total value of maturity
R = Amount of monthly deposits
n = Time period in years
i = interest rate offered
For example, if you want to deposit 10000/- rupees per month in Post Office Recurring Deposit (RD) the maturity amount will be calculated as under-
Maturity amount- 10000 [(1+8.50)5-1] / 1- (1+8.50) (-1/3)
RD Maturity Amount - 696967/-
Where 96967/- is the interest amount and 600000/- is the total invested money in the RD account.
Post office rd interest rate 2022 for 1 year
The interest rate on Post Office RD account for one year is 5.80% per year. There is no variation as per duration in RD post office Scheme.
Post office rd interest rate 2022 for 5 years
The interest rate on Post Office RD accounts for five years is 5.80% per year.
Post office RD interest rate 2022 for senior citizens
The interest rate on RD post office scheme for senior citizens is 5.80% per annum. It is similar to general citizens.
Money deposit limits in the Recurring Deposit scheme
A Recurring Deposit account can be opened with a minimum of Rs.100 at any post office.
You can open an RD account with any amount with a multiple of 10 Rupees. It has no maximum limit.
An amount from which the recurring account (RD) is opened, the same amount has to be deposited in the RD account every month.
Who can open an RD account in Post Office
A single adult can open an RD account at any post office whether it is HO, SO, or BO.
A joint RD account can also be opened.
More than 10 years old children can also open an RD account in their own name.
A single person can open multiple RD accounts.
How can I deposit money in the Recurring Deposit account?
The post office provides online and offline facilities to deposit money into RD accounts.
Just visit the nearest post office and deposit money into RD account in cash and cheque form.
You can also deposit money online through IPPB mobile banking app.
If the RD account is open between the 1st to 15th date of a calendar month, the monthly deposit should be made up to the 15th day of every month.
If the RD account is open between the 15th to 31st date of a calendar month, the monthly deposit should be made up to the last day of every month.
What happens when I missed depositing into my RD account
As we know that a fixed amount of money must be deposited every month up to the next 5 years. If you fail to deposit money this month, then don't worry. Your RD account will not be closed by the postal department.
You have to pay a default fee in the form of 1 rupee for 100 rupees.
If there is monthly default in the RD account or you missed to deposit money in the RD account, then you have to first pay the defaulted monthly deposit with the default fee and then pay the current month's deposit.
After 4 regular defaults, the RD account becomes discontinued.
It can also be revived within two months from the 4th default month.
If your RD account is still not revived within a prescribed period, no further deposit can be made in such account and your RD account became discontinued automatically.
Can I deposit money in advance into my RD account?
Yes, the post office provides an advance deposit facility to all Recurring Deposit account holders. Postal Department gives a specific rebate for advance deposits.
When an RD account holder deposits 6-month installments in advance, 10 rupees on 100 rupees rebate will be given to him.
Similarly, when 12-month installments are deposited in advance into the RD account, 40 rupees on 100 rupees rebate will be given to the account holder.
Can I get a loan on my RD account?
Yes, after one year, an account holder can apply for the loan on his RD account.
With a total of 50% of the balance of the RD account, the loan will be granted. Interest on the loan will be applicable as 2% + RD interest rate applicable to the RD account.
Can I close my RD account before maturity?
Yes, you can close and withdraw money from your RD account. I can only be closed after 3 years from the date of account opening.
If the RD account is closed before 5 years then the post office savings account interest rate will be paid to him.
When my RD account will mature
The maturity of an RD account is 5 years from the date of opening of the account.
An account holder can also extend the RD account for further 5 years by giving a written application at the respective post office.
FAQs
Question 01- What is the rate of interest in post office for RD?
Answer- 8.50% per annum.
Question 02- Which Bank RD is Best 2022?
Answer- Post Office.
Question 03- Will post office RD interest rates increase in 2022?
Answer- No announcement from the Indian government.
Question 04- Which is best RD or FD in post office?
Answer- RD is the best option for middle-class families. They can invest on monthly basis in RD accounts.
My thought
Post Office Recurring Deposit does not come in tax exemption under 80C. If you want to get tax exemption under 80C then you have to invest money in PPF and SSA accounts only.
Now, PPF accounts can also be opened online. Check here step by step process of how to open a PPF account online in post office.
Tags:- Post Office Recurring Deposit tax exemption 80C, Post Office Recurring Deposit tax exemption under 80C, Post Office RD tax exemption 80C, Post Office RD tax exemption under 80C, post office rd interest rate 2022, Post Office RD Scheme 1000 per Month, post office rd interest rate 2022 Calculator in excel
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