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The main objective of the National Savings Recurring Deposit Scheme is to provide small investors means to invest small amounts regularly to help them meet their future needs. An account under the National Savings Recurring Deposit Scheme can be opened with as low as Rs 100.
Under this scheme, an individual can open and maintain an account in his or her own name or jointly with another individual. Legal guardians are allowed to open an account under this scheme in the name of their minor child. On furnishing application in the format of Form-1 to the account’s office, the following accounts under National Savings Recurring Deposit Scheme can be opened:
i) An individual account
ii) A joint account operated by a maximum of three adults
iii) A minor account operated by the legal guardian
iv) A minor account by a minor who is at least 10 years old
The following are the salient features of the National Savings Recurring Deposit Scheme:
The current rate of interest on National Savings Recurring Deposit accounts is 5.8% p.a. It is revised periodically, depending on various economic factors. The interest on these accounts is compounded on a quarterly basis.Conclusion
National Savings Recurring Deposit scheme is an excellent investment option for those looking to invest regularly. One can invest as low as Rs 100 and there is no capping on the investible amount.