Recurring - post office or bank?

Question

I would like to open a recurring account.

Please advise me which one would be benefitial, post office RD account or any bank.

Please let me know the tax implications.

Answer 1

If you invest in PO or Bank you will get 8% return without any tax break. PO accepts for 5 year term with one more renewal possible. That is max 10 years. If you withdraw before maturity there is penalty.

Better you invest in LIC Jeevan Saral scheme.

Answer 2

It is not worth opening an a/c in a PO. The experience is not good. Female agents are not reliable. You have the option of depositng a full years' amount in lump sum. You get a rebate of Rs. 40/- if you deposit Rs.1200/- lump sum instead of Rs 100/- p.m. But than that is not recurring.

Best is recurring deposit in bank.

Interest on both is is fully taxable.

Answer 3

fdsa