Post Office RD Calculator 2025: Recurring Deposit (RD) schemes are considered among important ways to save money systematically and earn interest on your savings. They are especially beneficial for those who prefer a disciplined approach to saving. A RD scheme is a popular investment option for individuals with regular incomes. It allows you to deposit a fixed amount of money every month into your RD account for a predetermined tenure.
In this article, RD offered by India Post is being discussed along with its benefits, interest rate and calculator.
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RD vs FD: Difference
RDs are structured savings plans where you commit to depositing a fixed sum at regular intervals (typically monthly) over a chosen period. This creates disciplined saving, ideal for those building a fund gradually. Fixed Deposits (FDs) involve a single, lump-sum investment that remains locked for a predetermined duration, earning a fixed interest rate.
What Is Post Office RD Scheme?
The Post Office Recurring Deposit (RD) Scheme in India is a popular savings option offered by India Post. Below are the details about the 5-year Post Office Recurring Deposit Account.
Who Can Open Post Office RD Scheme account?
A Post Office RD Scheme account can be opened by a single adult, a joint account with up to three adults (in Joint A or Joint B format), a guardian on behalf of a minor, a guardian on behalf of a person of unsound mind, or a minor aged 10 years or above in their own name. There is no restriction on the number of accounts one can open.
Post Office RD Scheme account: Deposit Rules
The minimum monthly deposit required is Rs 100, with any additional deposits to be made in multiples of Rs 10.
Post Office RD Interest Rate 2025
As of Feb 26, 2025, interest rate on Post Office RDs is 6.7 per cent per annum (quarterly compounded).
Post Office RD Calculator
After investing Rs 1,000 per month for 5 years in a Post Office at an interest rate of 6.7 per cent (compounded quarterly), the total investment amounts to Rs 60,000. The maturity amount will be Rs 71,369, which includes Rs 11,369 as interest earned over the period.
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Post Office RD Scheme account: Loan
A loan facility is available on a Post Office RD Scheme account after 12 installments have been deposited, provided the account has been continued for at least one year without discontinuation. The depositor can avail of a loan of up to 50% of the balance credit in the account.
Post Office RD Scheme account: Premature Closure
A Post Office RD Scheme account can be closed prematurely after three years from the date of opening by submitting the prescribed application form at the concerned Post Office. If the account is closed even a day before maturity, the applicable interest rate will be that of a Post Office Savings Account. However, premature closure is not allowed until the period for which advance deposits have been made has been completed.
Post Office RD Scheme account: Maturity
The Post Office RD Scheme account matures after five years (60 monthly deposits) from the date of opening. It can be extended for an additional five years by submitting an application at the concerned Post Office, with the interest rate during the extension period remaining the same as the original rate at the time of account opening.
