Post Office RD Calculator | Calculate Recurring Deposit Maturity Online

Dec 16, 2025
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A Post Office Recurring Deposit (RD) is one of the most popular small savings schemes in India, operated by India Post under the Government of India. It is designed for individuals who want to invest a fixed amount every month and earn steady interest with guaranteed returns. The scheme is especially attractive for people who prefer low-risk investments with assured maturity value.

This guide will cover every detail about the Post Office RD, including its features, benefits, interest rates, eligibility, deposit process, premature withdrawal rules, tax implications, and more.

1. Understanding the Post Office Recurring Deposit

A Recurring Deposit is a savings scheme where an investor deposits a fixed sum of money every month for a specific tenure, and at the end of the term, the investor receives the accumulated amount along with interest.

The Post Office RD functions similarly to bank RDs but has the advantage of being backed by the Government of India, making it one of the safest investment avenues. This scheme is governed by the Post Office Savings Bank Rules, 1981.

2. Key Features of Post Office RD

Here are the most important aspects of this scheme:

Tenure – The default tenure for a Post Office RD is 5 years (60 months).
Deposit Amount – The minimum monthly deposit is ₹100. There is no maximum limit, but the amount must be in multiples of ₹10.
Interest Rate – The interest rate is declared quarterly by the Ministry of Finance. It is compounded quarterly, which increases the effective annual yield.
Guaranteed Returns – Since it is a government-backed scheme, the returns are risk-free and fixed throughout the tenure.
Flexibility – You can open multiple RD accounts in your name, jointly, or for a minor.
Nomination Facility – Available at the time of account opening or any time later.
Premature Closure – Permitted after 3 years with certain conditions.
Loan Facility – Up to 50% of the balance in the RD account can be availed as a loan after one year of deposits.
Penalty for Late Deposits – A nominal penalty is charged if you miss a monthly deposit.

3. Interest Rates for Post Office RD

The interest rate is reviewed every quarter by the government. For example, if the interest rate for the April–June quarter is 6.7% per annum (compounded quarterly), it remains fixed for all deposits during that period.

Quarterly Compounding means interest is calculated every three months and added to your deposit amount, which then earns interest in subsequent quarters. This leads to a slightly higher effective yield than the nominal rate.

4. Eligibility Criteria

The Post Office RD can be opened by:

Any resident Indian above the age of 18 years.
Minors above 10 years can open an account in their own name.
Parents or guardians can open an RD account on behalf of minors.
Joint accounts can be opened by up to three adults.

Non-resident Indians (NRIs) are not eligible to open a Post Office RD account.

5. How to Open a Post Office RD Account

Step 1: Visit the Post Office
Go to the nearest Post Office that offers savings schemes.

Step 2: Fill the Application Form
Get the RD account opening form and fill in your personal details, deposit amount, and tenure.

Step 3: Submit KYC Documents
Provide identity proof (Aadhaar, PAN, Voter ID, etc.) and address proof along with passport-sized photographs.

Step 4: Make the First Deposit
Pay your first monthly installment in cash or through cheque.

Step 5: Account Activation
Once the documents are verified and the payment is processed, your RD account will be activated. You will receive a passbook with details of your deposits and interest.

6. Deposit and Payment Rules

Deposits must be made every month before the due date.
If you miss a deposit, a penalty is charged per month of delay.
A maximum of 4 consecutive defaults are allowed; beyond this, the account becomes inactive.
Deposits can be made in cash, cheque, or by transferring funds from a Post Office Savings Account.

7. Maturity and Withdrawal

At the end of the 5-year term, the investor receives the maturity value, which is the total of all monthly deposits plus accrued interest.

If you want to continue investing beyond 5 years, you can extend the RD account for another 5 years by submitting an application before maturity.

8. Premature Withdrawal

Allowed only after completion of 3 years.
You will get the savings account interest rate instead of RD rate for the premature period.
Premature closure before 3 years is not permitted except in the event of the account holder's death.

9. Loan Against RD

After making deposits for at least 1 year, you can apply for a loan of up to 50% of the balance in the RD account. The loan interest rate is 2% higher than the RD interest rate.

10. Benefits of Post Office RD

Safety – Fully backed by the Government of India.
Low Investment Amount – Start with as little as ₹100 per month.
Guaranteed Returns – No market risk.
Quarterly Compounding – Earn more interest over time.
Loan Facility – Access funds without breaking the RD.
Nationwide Access – Available at over 1.5 lakh post offices.

11. Tax Implications

Interest earned on Post Office RD is taxable under “Income from Other Sources”.
TDS (Tax Deducted at Source) is not applicable unless the interest exceeds the specified limit.
No tax benefits are available under Section 80C for RD deposits.

12. Digital Access and India Post Payments Bank (IPPB)

With the India Post Payments Bank (IPPB) app and online services, some Post Office schemes, including RD deposits, can be managed digitally. However, online RD opening is limited and often requires a linked Post Office Savings Account.

13. Common Mistakes to Avoid

Missing monthly deposits and paying penalties unnecessarily.
Not checking the interest rate before opening the account.
Forgetting to nominate a beneficiary.
Prematurely closing the account and losing higher interest.
Not extending the account when interest rates are favorable.

14. Best Practices for Maximizing Returns

Start early and commit to the full 5-year term.
Deposit on time every month to avoid penalties.
If you have surplus funds, open multiple RD accounts at different times to enjoy varied maturity periods.
Monitor interest rate announcements quarterly.

Frequently Asked Questions (FAQs)

Q1: What is the current interest rate for Post Office RD?
The interest rate changes quarterly. You can check the latest rate on the official India Post website or at your nearest Post Office.

Q2: Can I open a Post Office RD account online?
In most cases, RD accounts must be opened offline at the Post Office. However, with a linked India Post Savings Account and IPPB services, certain deposits can be managed digitally.

Q3: Is the Post Office RD safe?
Yes, it is fully backed by the Government of India and offers guaranteed returns with zero market risk.

Q4: Can I withdraw my Post Office RD before maturity?
Yes, but only after 3 years. Early withdrawal before 3 years is allowed only in case of the account holder's death.

Q5: Does Post Office RD give tax benefits?
No, deposits in RD do not qualify for Section 80C deductions. Interest earned is taxable.

Q6: Can I open multiple RD accounts in the Post Office?
Yes, you can open as many accounts as you wish in your own name, jointly, or for minors.

Q7: What happens if I miss a monthly deposit?
A small penalty is charged per month of default, and the account may become inactive if more than 4 consecutive deposits are missed.

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