Key Points
National Savings Recurring Deposit Account (RD) can be closed prematurely after three years from the date of account opening by submitting the appropriate application form to the relevant Post Office..
If the account is closed prematurely, even if it is only one day before maturity, the interest rate on the PO Savings Account will apply...
If a 2/3/5 year TD account is prematurely terminated after 1 year, interest will be calculated at 2% less than the TD interest rate (i.e. 1/2/3 years) for completed years, and PO Savings Interest rates will be applicable for part time shorter than a year...
If the account is closed after one year but before three years from the date of opening, a 2% deduction from the principle will be deducted and the remaining amount will be paid..
Accounts may be closed prematurely after 5 years if the following conditions are met: - -> In the event of the account holder's death..
