5. Post Office Recurring Deposit Account:

This account can be opened by a single adult or two adults jointly and a minor who has attained the age of ten year can avail the account in his own name in any post office. Period of maturity of an account id five years. As per deposit, sixty equal monthly deposits shall be made in an account in multiples of 5 subjected to a minimum of 10. Accounts with not more than four defaults in deposits can be regularized within a period of two months on payment of a default fee but account becomes discontinued after more than four defaults. The depositor is provided with a pass book with entries of the deposited amount and other particulars duly stamped by the post office. For a ten rupees account, the amount payable to the depositor is 728.90 is payable. 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.