Post Office recurring Deposit Account

Post office recurring Account is for five years. There is no upper limit of investment in this account. The investments are to be made in multiples of Rs 10. Interest for these account is approx 8% p.a compounded at maturity, i.e ., after five years. 

Normally the account of RS. 10 denominations will yield RS.728.90 at maturity. The deposit is also exempt from wealth tax. For small investor this is a good investment, but in views of the fact that investment in PPF, etc. compares favorably with this investment, it is not very popular.