The RD post office scheme is a five year recurring deposit: you pay the same amount every month, from as little as ₹100, and the post office adds interest at 6.7% a year, compounded quarterly. At the end you receive everything you paid plus the interest in one sum.
It is the simplest way to turn a salary or pension into a savings habit with a government backed return. This hub explains the rules, the payout, what happens if you miss a month, and links to the rate page and the calculator. This page comes from an independent site, not from India Post.
At a glance
Rate
6.7% a year, compounded quarterlyTerm
5 years (60 instalments)Minimum
₹100 a month, multiples of ₹10Maximum
No limitLoan
Up to 50% after 12 instalmentsEarly closure
After 3 years, at savings rate
What the RD post office scheme gives back
| Monthly deposit | You pay in 5 years | You get at maturity |
|---|---|---|
| ₹100 | ₹6,000 | About ₹7,137 |
| ₹500 | ₹30,000 | About ₹35,683 |
| ₹1,000 | ₹60,000 | About ₹71,370 |
| ₹2,000 | ₹1,20,000 | About ₹1,42,732 |
| ₹5,000 | ₹3,00,000 | About ₹3,56,829 |
| ₹10,000 | ₹6,00,000 | About ₹7,13,658 |
Figures at 6.7%. The post office's own table may differ by a few rupees because of rounding. The post office RD calculator gives a year by year view.
Post office RD scheme 1000 per month, and other common plans
The post office RD scheme 1,000 per month plan is the one most people start with, and it grows to about ₹71,370. People also ask about the 1000 ki RD post office interest rate; it is the same 6.7% as every other amount. A recurring deposit in post office is sometimes sold as a post office RD scheme savings plan or a post office RD scheme investment plan by agents, but there is only one RD product, with one rate.
Whatever the label, check three things on the form: the monthly amount, the start date and the nominee. The RD in post office interest rate is printed in the passbook, so you can confirm it there.
Recurring deposit in post office: questions in other words
India Post recurring deposit, post office recurring deposit (RD) and RD account in post office all name this one scheme. The recurring deposit post office interest rate is 6.7%, the same for ₹100 or the 5000 ki RD post office plan. Post office RD scheme details are fixed: one term, the post office RD scheme for 5 years. For investment returns, see the table above.
Post office RD scheme rules you should know
- Who can open: any resident adult, up to three adults jointly, a guardian for a minor, and children from age 10 in their own name.
- Due date: if the account opens between the 1st and 15th, pay by the 15th of each month; if opened later, by the last working day.
- Advance deposits: paying six months or more ahead earns a small rebate.
- Rate lock: the rate on the opening day applies for all 60 months.
Missed a month: default fee and how to revive
| Situation | What happens |
|---|---|
| One month missed | Pay it next month with a default fee of ₹1 for every ₹100 |
| Four months in a row missed | Account becomes discontinued |
| Discontinued account | Can be revived within two months by paying all dues and fees; after that it cannot |
| Maturity with defaults | Maturity is pushed back by the number of missed months |
A standing instruction from your post office savings account avoids all of this.
Loan against a post office RD
After twelve instalments and one year from opening, you can borrow up to half of the balance. You repay in one go or in monthly instalments, and the interest is 2% above the RD rate, so about 8.7% today. If you do not repay before maturity, the loan and its interest are taken out of the maturity amount.
This is often cheaper than a personal loan for a short gap. More options are on our post office loan page.
Closing early, and extending after five years
You can close the RD after three years. If you do, interest is paid at the savings account rate of 4.0%, not 6.7%, which sharply cuts the return. Before three years, only the holder's death allows closure.
At maturity you can extend for another five years, with or without fresh deposits. The extension earns the rate that applied when the account was first opened.
Post office RD vs a bank RD and a SIP
| Post office RD | Bank RD | Mutual fund SIP | |
|---|---|---|---|
| Return | Fixed 6.7% | Fixed, varies by bank | Not fixed, market linked |
| Term | 5 years | 6 months to 10 years | Flexible |
| Risk | Government backed | Bank, insured to ₹5 lakh | Market risk |
People sometimes ask for the post office SIP interest rate. There is no SIP at the post office; the RD is the nearest thing. For bank RDs, see what is a recurring deposit and the bank RD calculator.
How to open an RD at the post office
- Bring Aadhaar, PAN and a photo to the counter, or use the India Post app if your savings account is already online.
- Choose the monthly amount; you cannot change it later, so pick a sum you can keep up.
- Pay the first instalment and set a standing instruction for the rest.
- Add a nominee and keep the passbook updated every few months.
Many families open two RDs, one small and one larger, so that a tight month only affects one of them.
Tax on RD interest
The interest earned is taxable in the year it accrues, at your slab, even though you receive it only at maturity. RD deposits earn no tax deduction. If you are a senior citizen with low income, the interest may fall within your exemptions. The after tax picture is worked out on the RD rate page.
Frequently asked questions
How much will I get on ₹1,000 a month in post office RD?
Close to ₹71,370 at maturity, on ₹60,000 of deposits.
Smallest monthly amount for a post office RD?
₹100 a month, and above that any amount in multiples of ₹10.
Can I change my RD amount later?
No. Open a second RD if you want to save more each month.
What if I miss an RD instalment?
Pay it with the next one plus ₹1 per ₹100 as a default fee. Four misses in a row stop the account until revived.
Can I close a post office RD before 5 years?
Yes, after three years, but interest drops to the savings rate.
Is there a post office SIP?
No. The recurring deposit is the post office's monthly saving product.
Can NRIs or HUFs open a post office RD?
No. Only resident individuals can open one, alone, jointly or for a minor. An account opened while resident can usually run to maturity, but tell the post office if your status changes.