Nowadays everyone wants to save small to secure their future. In such a situation, if you also want to start investing with less money and want your money to be safe and good returns, then Post Office RD (Recurring Deposit) Scheme is a great option for you. This scheme of the post office is supported by the government, in which you can start investing only ₹ 1000 or less and get a lot of money after 5 years. In this scheme, you have to deposit a fixed amount every month at a fixed interest rate, which makes your small savings together.
The biggest advantage of investing in post office RD is that your money is completely safe in this and you do not have to worry about market fluctuations. Here you have to deposit a certain amount every month, which gets involved in your habit and helps you save with discipline.
In this article, we will know what is the post office RD, how to invest in it, how much interest is received, and how much you can make in 5 years by starting from ₹ 1000. Also, we will tell you what are the benefits of this scheme, who can open an account in it, and what is important to take care of.
What is post office rd? (What is the post office rd?)
Post Office RD i.e. Recurring Deposit Scheme is a government savings scheme, in which you deposit a certain amount every month. This scheme is especially for those who want to get big money in future by making small savings. The minimum deposit in it is ₹ 100, and you can deposit ₹ 1000, ₹ 2000 or more as per your convenience. The interest rate is fixed and every quarter compound is compound, causing your savings to grow rapidly.
Overview Table of Post Office RD Scheme
| Name of the scheme | Post Office Recurring Deposit (RD) |
| Minimum monthly deposit | ₹ 100 (Multiples of ₹ 10) |
| Maximum deposit limit | No limit |
| Interest Rate (2025) | 6.7% per year (quarterly compound) |
| Tenure | 5 years (60 months) |
| Account type | Single, Joint (up to 3), Minor |
| Premature closure | Possible after 3 years |
| Loan facility | Loan up to 50% of deposit amount |
| Nomination facility | Available |
| tax benefit | Under Section 80C |
Main things of Post Office RD
- Government Scheme: Post Office RD is fully supported by the government, which keeps your money safe.
- Starting at least: You can start with just ₹ 100 or ₹ 1000.
- Fixed interest: The interest rate in 2025 is 6.7%, which is a compound on a quarterly basis.
- Flexible deposit: You can deposit every month as per your convenience, for multiples of ₹ 10.
- Loan facility: After 1 year, you can take a loan of up to 50% of the deposit.
- Premature Closure: You can close the account if needed after 3 years.
- Tax exemption: Investment gets tax exemption under section 80C, but interest has to be paid on interest.
How to open Post Office RD? (How to Open Post Office RD Account?)
It is very easy to open the post office RD account. For this, you have to go to the nearest post office. Follow the steps given below:
- Go to the post office and take RD account opening form.
- Fill your basic details in the form (name, address, nominee etc.).
- Apply essential documents – Aadhaar Card, PAN Card, Address proof.
- Commit the minimum ₹ 100 or deposit the amount of your choice.
- Submit the form and documents, your account will open.
- Deposit your money every month till the fixed date.
How much will you get after depositing ₹ 1000 every month in the post office RD? (Post Office RD Calculator Example)
Suppose you deposit ₹ 1000 post office RD every month and the interest rate is 6.7%. Your total investment will be made by depositing 5 years i.e. 60 months continuously:
- Total deposit: ₹ 1000 x 60 = ₹ 60,000
Now, the Post Office RD has an interest on a quarterly basis, which increases your amount. You will get after 5 years:
- Principal: ₹ 60,000
- Interest: Around ₹ 10,800 (Andan)
- Total maturity amount: around ₹ 70,800
If you deposit ₹ 5000 every month, then after 5 years your maturity amount can be around ₹ 3,54,945.
Benefits of Post Office RD)
- Safe investment: Guarantee by the government, no risk.
- Fixed Return: The interest rate remains fixed, so that you already know how much will be available.
- Best for small investors: You can start at least ₹ 100.
- Loan facility: If needed, up to 50% of the deposit is available.
- Premature Closure: Can close the account after 3 years.
- Joint account: More than one people can open the account together.
- Transfer facility: You can transfer account from one post office to another.
- Rebet facility: In advance, discounts get a discount on depositing 6 or 12 months installment.
Post Office RD Terms and Conditions (Rules & Conditions)
- Combine the amount every month till the fixed date, otherwise the penalty is taken.
- If the installment is not deposited for 4 consecutive times, then the account can be inactive.
- The inactive account can be revived within 2 months.
- Premature closure is possible only after 3 years.
- The interest rate may change from time to time, but the rate of opening the account will be applicable.
- Taking a loan will have to pay 2% more interest than the interest rate.
Who can open an account in the post office RD? (Eligibility for post office rd)
- Any Indian citizen (above 18 years)
- Children above 10 years (minor account)
- Joint account of up to 3 people
- Guardians can also open an account for their child
Difference between Post Office RD and Bank RD (Post Office RD vs Bank RD Comparison Table)
| Speciality | Post Office R.D. | Bank RD |
| Interest rate | 6.7% (2025) | 5.5% – 7% (as per bank) |
| Security | Fully government | Up to ₹ 5 lakh under DICGC |
| Minimum deposit | ₹ 100 | ₹ 100 – ₹ 500 |
| Loan facility | up to 50 | Available in some banks |
| Premature closure | 3 years later | Immediately (with penalty) |
| Tax exemption | Section 80C | Section 80C |
Post -paying things before investing in post office RD
- The interest rate may change from time to time, but the rate of opening time will be applicable on your account.
- Interest has to be taxed, if the annual interest is more than ₹ 10,000, then the TDS will be deducted.
- Tax rules apply to the maturity amount.
- Stores installments on time, otherwise a penalty will be installed.
- Take advantage of loan facility if needed, but repay on time.
Why invest in post office RD? (Why investment in post office rd?)
- Non-risk investment: There is no market risk.
- Discipline Savings: Submission of every month makes a habit of savings.
- Simple process: It is easy to open and run an account.
- Best for a long period: Get good returns in 5 years.
- Also for children: Can open a minor account, causing saving for the future of children.
Frequently Asked Questions related to Post Office RD (FAQs)
Q1. Can I start RD from ₹ 1000?
Yes, you can start post office RD from just ₹ 1000.
Q2. How much interest rate does RD get?
In 2025, the post office RD is getting 6.7% annual interest rate, which is a compound on a quarterly basis.
Q3. When can you close RD account?
You can closure premature when needed after 3 years.
Q4. Get tax exemption in RD?
Investment is given tax exemption under section 80C, but interest has to be paid on interest.
Q5. Can I find a loan?
Yes, after 1 year, a loan can be found up to 50% of the deposit.
Calculation Table for ₹ 1000 per month
| Month deposit | Total deposit (5 years) | Interest (approx) | Maturity amount |
| ₹ 1000 | ₹ 60,000 | ₹ 10,800 | ₹ 70,800 |
| ₹ 2000 | ₹ 1,20,000 | ₹ 21,600 | ₹ 1,41,600 |
| ₹ 5000 | ₹ 3,00,000 | ₹ 54,945 | ₹ 3,54,945 |
| ₹ 10,000 | ₹ 6,00,000 | ₹ 1,09,890 | ₹ 7,09,890 |
Note: Interest rates and maturity amounts can change from time to time.
Conclusion
Post Office RD is a scheme in which you can start investing from at least ₹ 100 or ₹ 1000 and you can make a lot of money in 5 years. This scheme is especially for those who want safe and fixed returns. In this, the interest rate is fixed, the money is completely safe, and loan facility is also available when needed. If you also want to get big money in future by making small savings, then post office RD is a great option for you.
Disclaimer:
The scheme is completely supported and real by the government. There is no fraud or forgery in it. But note that the interest rate can change from time to time and the maturity amount can also decrease accordingly. Before investing, make sure to confirm the fresh interest rate and rules from the official website of the post office or the nearest branch. This article is only for information, do your need and financial planning before investing.
