Post Office Recurring Deposit Accounts

Who can open Recurring Deposit Accounts:

  • A single adult or two adults jointly,
  • A guardian on behalf of a minor or a person of unsound mind; or
  • A minor who has attained the age of ten year, in his own name.

Where can be opened :

A Recurring Deposit Accounts can be opened at any post office.

Maturity of Recurring Deposit Accounts

Period of maturity of an account is five years.


Sixty equal monthly deposits shall be made in an account in multiples of Rs.five subject to a minimum of ten rupees.

Defaults in deposits :

  • Accounts with not more than four defaults in deposits can be regularized within a period of two months on payment of a default fee.
  • Account becomes discontinued after more than four defaults.

Interest & Repayment on maturity :

  • On maturity of the accounts opened on or after 1st March, 2003, an amount (inclusive of interest) of Rs. 728.90 is payable to a subscriber of Rupees: Ten denomination account.
  • Amount repayable, inclusive of interest, on an account of any other denomination shall be proportionate to the amount specified above.

Pass Book in Recurring Deposit Accounts :

Depositor is provided with a pass book with entries of the deposited amount and other particulars duly stamped by the post Office.

Premature closure :

Premature closure of accounts is permissible after expiry of three years provided that interest at the rate applicable to post office savings account shall be payable on such premature closure of account.

Continuation after maturity in Recurring Deposit Accounts :

Permissible for a maximum period of five years.

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