Use this calculator to estimate the maturity value of your Post Office Recurring Deposit (RD). Enter the amount you plan to deposit every month and see your total deposit, total interest, and maturity value over the fixed 5-year term at 6.7% per annum.
| Year | Total Deposited So Far | Interest Earned So Far | Balance at Year End |
|---|
This calculator provides an estimated maturity value based on the prevailing Post Office RD interest rate and quarterly compounding methodology. Actual maturity values may vary slightly depending on deposit dates, rounding methodology, and applicable Post Office rules.
What Is a Post Office Recurring Deposit?
A Post Office Recurring Deposit, officially called the National Savings Recurring Deposit Account, lets you build savings by depositing a fixed amount every month for 5 years. Unlike a lump-sum scheme like NSC or KVP, an RD is designed for people who want to save small amounts regularly rather than invest a large sum all at once.
How Interest Builds Up in an RD
Every month you deposit a fixed amount into your account. Each of these monthly deposits earns interest from the day it goes in until the account matures, and this interest compounds every quarter. Because your earlier deposits have more time to earn interest than your later ones, the growth is slow in the first year or two and speeds up noticeably in the final years, as the compounding effect builds on a larger accumulated balance.
How This Calculator Works
Enter the amount you plan to deposit every month. Since the interest rate and the 5-year tenure are both fixed by the scheme, the calculator applies India Post’s official quarterly-compounding formula to show your total deposit, total interest, and final maturity value. Click the button to see how your balance grows year by year.
Post Office RD Rules You Should Know
The minimum monthly deposit is Rs 100, and any amount above that must be in multiples of Rs 10. There is no maximum limit on how much you can deposit each month. The account has a fixed tenure of 5 years (60 monthly instalments), and you can extend it for another 5 years once it matures. A loan against your RD balance becomes available after you have paid 12 instalments. Premature closure is allowed after 3 years, though it comes with a penalty of around 1.80% and the account earns a lower rate similar to a savings account for the period it was actually held.
Post Office RD interest is fully taxable as income from other sources at your applicable tax slab. Unlike a bank RD, no TDS is deducted on Post Office RD interest, though you are still required to declare and pay tax on it yourself when filing your return.
Post Office RD vs Bank RD – A Quick Comparison
| Feature | Post Office RD | Bank RD |
|---|---|---|
| Interest Rate | 6.7% p.a., same everywhere | Varies by bank, typically 6% – 7.5% |
| TDS | Not deducted | Deducted if interest crosses Rs 40,000 (Rs 50,000 for seniors) |
| Minimum Deposit | Rs 100 per month | Usually Rs 100 – 500 per month, varies by bank |
| Backing | Government of India, sovereign guarantee | DICGC insured up to Rs 5 lakh per bank |
Post Office RD is a good choice if you want a government-guaranteed rate that is the same no matter which post office you use, along with the convenience of no TDS deduction on the interest you earn.
Frequently Asked Questions (FAQs)
Ans. The current Post Office RD interest rate is 6.7% per annum, compounded quarterly, for the applicable quarter. The Government of India reviews small savings scheme interest rates every quarter through official notifications.
Ans. The minimum monthly deposit required to open a Post Office RD account is Rs 100. Deposits above this amount must be made in multiples of Rs 10. There is no upper limit on the amount that can be deposited every month.
Ans. No. The Post Office does not deduct TDS on RD interest. However, the interest earned is taxable according to your income tax slab and must be reported while filing your income tax return.
Ans. Yes. Premature closure of a Post Office RD account is generally permitted after three years from the date of opening, subject to applicable Post Office rules. In such cases, interest is usually paid at the Post Office Savings Account rate instead of the RD rate.
Ans. Yes. Eligible account holders can avail a loan facility against their RD balance after completing at least 12 monthly deposits and maintaining the account for one year, subject to the prevailing rules.
Ans. If you miss a monthly instalment, a prescribed default fee is charged for each missed deposit. The pending instalment and default fee can be paid later to regularise the account. Continued defaults may lead to the account becoming discontinued.
Ans. Yes. After completing the original 5-year tenure, the RD account can be extended for another five years as per the applicable Post Office rules. The terms and interest applicable to the extended period are governed by the rules in force at that time.
Ans. Every monthly deposit earns interest from the date it is credited to the account until maturity. Earlier deposits remain invested for a longer period and benefit more from quarterly compounding. As the accumulated balance increases over time, the interest earned also rises, resulting in faster growth during the later years of the account.
Ans. Yes. The Post Office Recurring Deposit Scheme is a Government of India-backed small savings scheme, making it one of the safest fixed-income investment options available to individual investors.
Ans. A Post Office RD is suitable for individuals who want to build savings gradually through fixed monthly deposits. It is particularly useful for salaried employees, students, homemakers, and conservative investors looking for disciplined savings with government-backed security.
Tabassum is a government document researcher and writer with over 5 years of experience exclusively dedicated to tracking and simplifying Central and State Government document processes across India. She has researched and published detailed guides on 100+ government documents and certificates – including Aadhaar Card, PAN Card, Ration Card, Domicile Certificate, and Birth Certificate – covering all states and the Central Government, helping lakhs of Indian citizens successfully complete their paperwork in simple, easy-to-understand language.