Recurring Deposit (RD) plans are regarded as one of the most significant methods for methodically accumulating money and earning interest. They are especially helpful for people who would rather methodically save money. One common investing choice for those with steady salaries is an RD plan. For a preset time, it enables you to deposit a set amount of money into your RD account each month.
RD vs FD: Difference
RDs are structured savings programs in which you agree to deposit a certain amount regularly (usually once a month) for a predetermined amount of time. This encourages diligent saving, which is perfect for people who are steadily increasing their cash. A single, lump-sum investment that earns a set interest rate and is locked for a specified period is known as a fixed deposit (FD).
What Is Post Office RD Scheme?
One well-liked savings option provided by India Post is the Post Office Recurring Deposit (RD) Scheme. The information on the five-year Post Office Recurring Deposit Account is provided below.
Who Can Open Post Office RD Scheme Account?
A guardian on behalf of a child, a guardian on behalf of an individual who is mentally ill, a minor who is 10 years of age or older in their name, or a joint account with up to three adults (in Joint A or Joint B format) can all create a Post Office RD Scheme account. One is not limited in how many accounts they may open.
Deposit Guidelines for the Post Office RD Scheme Account
A minimum of Rs 100 must be deposited each month, and any further contributions must be made in multiples of Rs 10.
Interest Rate on Post Office RD in 2025
The interest rate on Post Office RDs is 6.7% annually (quarterly compounded) as of February 26, 2025.
Calculator for Post Office RD
The entire investment comes to Rs 60,000 after five years of investing Rs 1,000 a month at a post office at an interest rate of 6.7% (compound quarterly). The total amount due at maturity would be Rs 71,369, which includes Rs 11,369 in interest earned during that time.
Post Office Rd Scheme Account: Loan
After 12 payments have been placed into a Post Office RD Scheme account, a loan opportunity becomes accessible, as long as the account has been maintained continuously for at least a year. Up to 50% of the account’s remaining credit may be borrowed by the depositor.
Account for the Post Office RD Scheme: Early Closure
After three years from the account’s establishment date, a Post Office RD Scheme account may be cancelled early by submitting the required application form to the relevant Post Office. The interest rate that applies will be the same as that of a Post Office Savings Account if the account is closed even one day before maturity. However, until the time frame for which advance deposits have been made has passed, an early closure is not permitted.
Post Office RD Scheme account: Maturity
After five years (60 monthly instalments) from the date of inception, the Post Office RD Scheme account matures. By completing an application at the relevant Post Office, it can be extended for an additional five years. During this time, the interest rate will stay the same as it was when the account was opened.
