Post Office Recurring Deposit Calculator
Calculate your Post Office RD maturity amount, interest earned, and returns with India’s most trusted recurring deposit scheme
RD Calculator
Pro Tips for RD Investors
- Post Office RD offers a higher interest rate than regular bank RDs (6.7% vs 5.5-6.5%).
- You can open a Post Office RD account with just ₹100, making it accessible to all.
- Interest earned is fully taxable, so consider tax-saving instruments for higher tax brackets.
- Nomination facility is available, ensuring easy transfer to beneficiaries.
Your RD Returns
Maturity Amount
₹3,58,990
Total Investment
₹3,00,000
Interest Earned
₹58,990
Effective Annual Return
7.02%
Investment Breakdown
Important Disclaimer
This calculator provides approximate results based on the inputs provided. The actual maturity amount may vary due to changes in interest rates, compounding frequency, or government policies. Post Office RD interest rates are subject to change quarterly. Please consult your nearest post office for the most accurate and up-to-date information before making any investment decisions.
This tool is for informational purposes only and does not constitute financial advice. Investments in market-linked instruments are subject to market risks. Past performance is not indicative of future returns.
Post Office Recurring Deposit (RD) – Complete Guide
The Post Office Recurring Deposit (RD) is one of India’s most popular small savings schemes, offering secure and guaranteed returns backed by the Government of India. With its attractive interest rates and flexible investment options, it’s an excellent choice for risk-averse investors looking to build a savings habit.
Key Features of Post Office RD
- Guaranteed Returns: Unlike market-linked investments, Post Office RD offers fixed, government-backed returns.
- Low Minimum Investment: Start with as little as ₹100 per month, with no upper limit.
- Flexible Tenure: Choose any period from 6 months to 5 years, with extensions available.
- Quarterly Compounding: Interest is compounded quarterly, enhancing your overall returns.
- Tax Implications: Interest earned is fully taxable under Income Tax Act, 1961.
- Nomination Facility: Easily add nominees to your RD account.
Current Interest Rates
As of the latest update, Post Office RD offers an interest rate of 6.7% per annum, compounded quarterly. This rate is typically reviewed every quarter by the Ministry of Finance. The rate is generally higher than what most commercial banks offer on their recurring deposit schemes.
How to Calculate RD Returns
The formula for calculating Post Office RD maturity amount is based on quarterly compounding:
Where P is monthly deposit, r is annual interest rate, and n is tenure in months. Our calculator above simplifies this complex calculation, giving you instant results.
Who Should Invest in Post Office RD?
Post Office RD is ideal for:
- Salaried individuals looking for disciplined monthly savings
- Risk-averse investors seeking guaranteed returns
- Parents saving for children’s education or marriage
- Senior citizens looking for regular income post-retirement
- Beginners starting their investment journey
How to Open a Post Office RD Account
- Visit your nearest post office with identity and address proof
- Fill out the Post Office RD account opening form
- Provide two passport-sized photographs
- Make the initial deposit (minimum ₹100)
- Choose your monthly deposit amount and tenure
- Set up auto-debit from your bank account for convenience
Comparison with Other Investment Options
| Investment | Returns | Risk | Liquidity |
|---|---|---|---|
| Post Office RD | 6.7% p.a. (fixed) | Very Low | Medium |
| Bank RD | 5.5-6.5% p.a. | Very Low | Medium |
| Equity Mutual Funds | 10-12% p.a. (historical) | High | High |
| PPF | 7.1% p.a. (tax-free) | Very Low | Low |
Use our Post Office RD Calculator above to plan your savings strategy effectively. Remember that consistent monthly investments, even in small amounts, can grow significantly over time thanks to the power of compounding interest.
© Post Office RD Calculator India. This tool is for informational purposes only.