The Post Office Recurring Deposit (RD) is a popular savings option, offering an attractive alternative to regular fixed deposits and other long-term savings plans provided by post offices.
Post Office RD Overview
In addition to mail delivery, post offices offer financial services through savings plans and life insurance, with the Post Office RD being one of the most favored options among these services.
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Current Interest Rate
The Post Office RD currently offers an interest rate of 6.70% per annum.
Compound Interest Benefits
Interest on the RD is compounded quarterly, allowing your savings to grow significantly over time until maturity.
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Tenure of the Post Office RD
Unlike bank recurring deposits, the Post Office RD has a fixed tenure of five years.
Extending the RD Tenure
For those who wish to continue beyond the initial five years, the RD account can be extended for an additional five years, making the total possible tenure ten years.
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Minimum and Maximum Deposit Limits
According to the rules, the minimum deposit amount for a Post Office RD is ₹10 per month, with no upper limit on the maximum deposit.
How a ₹30,000 Monthly Investment Grows
By investing ₹30,000 monthly, you will accumulate ₹21,40,074 upon maturity in five years. At an interest rate of 6.7%, the total interest earned would be ₹3,40,974.
