Savings And Investment Scheme Guide For Indian Poor And Middle Class:Post Office Recurring Deposit

What Scheme Mean?
The Post office Recurring Deposit (PORD) is a systematic saving plan,Where you save a small but finite equal sum of money each month for a period of 60 months.


As to be Resident Of India with post office saving account.

Entry Age
No age limit
A minor above 10 years can open an account on their own name directly.

Minimum:Rs 10 or in Multiple of Rs 5
Maximum:There is no upper limit

8% compound quarterly

Account Holding Type


Tax Benefits
No tax benefits or tax exemption.

How to Join The Scheme/Account/Deposit/Policy?
Once you have selected the post office to open the PORD account,you will first need to open a post office saving account to link the monthly payment to the PORD and for which you will need the documents:
  • An account opening form provided by the post office.
  • Two passport size photographs.
  • Address and identify proof such as copy of the passport,PAN card,License card or ration card.
  • Carry original identity proof for verification at the time of opening account.
  • Choose a nominee and get a witness signature to complete the formalities to start the deposit.

Objective And Risk
The main objective of the PORD is to provide an assured 8% return compound quarterly on every monthly deposit made over 60 months.Though it offer no tax incentive,it is a preferred instrument amongst small savers for the government backing that this product offers.

In an active account:six or more deposits but not exceeding eleven deposits made in any calender month,fetches Re1 rebate on every Rs10 denomination recurring deposit.
In case of twelve or more deposits made in any calender month,fetches a rebate of Rs4 for every twelve deposits and Rs1 for the balance,if any,of not less than six deposits.


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