In today’s time, safety and guaranteed -returned savings scheme has become the need of every family. Especially when it comes to making big funds for the future with small investment, then the post office Recurring Deposit (RD) Scheme comes out as a great option. This scheme is very beneficial for those who want to submit a big amount by saving a small amount every month. There have been many changes and updates in the post office RD scheme 2025, making the plan even more attractive.
If you also want to know what is the post office RD Scheme 2025, how much is the interest rate, what are the rules, what are the rules, and how you can fully calculate your investment with RD Calculator, then this article is for you. Here you will find every small and big information related to RD scheme in easy language, so that you can take the right decision.
Post Office RD Scheme 2025: Complete observation
The Post Office RD Scheme is a government-government-covered saving scheme, in which you can deposit a certain amount every month and get a good fund including interest after 5 years. This scheme is especially designed for middle class and lower income group, so that they can make big funds than small savings. The RD account opens in almost every branch of the post office and it is very easy to start investing in it.
Overview of Post Office RD Scheme 2025
| Speciality | Description |
| Name of the scheme | Post Office Recurring Deposit (RD) |
| Launch year | 1981 |
| Interest Rate (2025) | 6.5% – 7.5% (quarterly compounding) |
| Minimum monthly investment | ₹ 100 |
| Maximum investment limit | No limit |
| Maturity period | 5 years (60 months) |
| Premature clearance | With some conditions |
| tax benefit | No |
| Account opening process | offline online |
| Loan facility | Available (up to 50% of credit balance) |
Post Office RD Scheme 2025: Main Benefits and Features
- Guaranteed and safe scheme by the government: Your money is completely safe as this scheme is supported by the Government of India.
- Regular savings habit: depositing a certain amount every month creates a habit of saving.
- Fixed Interest Rate: Attacks are attractive interest rate with compounding.
- Flexibility: You can increase or reduce the deposit amount as per your convenience.
- Loan facility: Up to 50% loan can be found on RD account balance.
- Can open an account in both online and offline ways.
- No maximum investment limit: You can invest as much as you want.
Post Office RD Scheme 2025: Interest Rate and Return
The interest rate of the post office RD scheme is fixed by the government every quarter. The interest rate in 2025 is between 6.5% to 7.5%, which combines with quarterly compounding. This means that interest on your deposit keeps on adding interest every three months and it starts earning further interest.
Interest rate table
| Duration | Interest Rate (2025) |
| 1 year | 6.90% |
| 1-3 | 7.00% |
| 3-5 years | 7.50% |
Note: The interest rate for senior citizen is also the same.
Post Office RD Scheme 2025: Terms and Conditions
- Minimum monthly investment: Starting at ₹ 100, no maximum limit.
- Deposit amount: You can deposit in multiples of ₹ 10 or ₹ 5.
- Duration: Fixed period of 5 years (60 months), which can be extended to 5 years.
- Premature withdrawal: Partial withdrawal or account can be closed with certain conditions after 3 years.
- Loan facility: After submission of 12 installments and one year of account, you can take up to 50% of the deposit amount.
- Penal fines: If a installment is missed, a fine of ₹ 1 for every ₹ 100.
- Tax: TDS does not deduct the interest on RD, but you may have to pay tax according to your tax slab.
How to use Post Office RD Calculator?
The post office RD calculator is an online tool, by which you can estimate the amount and interest on maturity by adding your monthly deposit, interest rate and duration. With this, you come to know in advance how much amount you will get after 5 years.
How does RD calculator work?
- Monthly deposit: You will deposit as much as every month.
- Interest Rate: Quarterly Compounding Interest Rate announced by the post office.
- Duration: 5 years (60 months) or as much as you choose.
- Results: Total amount on maturity and earned interest.
Calculation formula (formula):
M = r × (1+i) n (11– (1+i) –1/3
M,R
1 (1+I,
-1/3
(1+I,
N
–1
Where:
- M
- M = Maturity amount
- R
- R = Monthly deposit
- I
- I = Interest Rate/400 (for quarterly compound)
- N
- N = Quarter number
How much return will be available in the post office RD scheme? (Return Calculation Examples)
Some examples are given below, so that you can understand how much return will be received after 5 years on different monthly investment (considering the interest rate of 6.7%):
| Monthly investment | Total deposit in 5 years | Maturity amount (approx) |
| ₹ 1,000 | ₹ 60,000 | ₹ 71,000 |
| ₹ 2,000 | ₹ 1,20,000 | ₹ 1,42,732 |
| ₹ 5,000 | ₹ 3,00,000 | ₹ 3,56,830 |
| ₹ 10,000 | ₹ 6,00,000 | ₹ 7,13,660 |
Post Office RD Scheme 2025: How to open account? (How to Open RD Account)
- Offline method:
- Go to the nearest post office.
- Take Aadhaar card, PAN card, passport size photo.
- Fill the form and deposit a minimum of ₹ 100.
- Passbook will be found after the account opens.
- Online method:
- Go to India Post’s website or mobile app.
- Login, choose ‘Recurring Deposit’.
- Fill the required details and make the first deposit online.
- Digital passbook can also be found.
Post Office RD Scheme 2025: Eligibility (Eligibility)
- Any Indian citizen (above 18 years)
- Minors over 10 years of age can open an account in their name
- Accounts can be opened by a guardian for a minor under 10 years of age
- Maximum 3 people can open joint account
Post Office RD Scheme 2025: Necessary Documents
- Aadhar card
- PAN card
- Passport Size Photo
- Address proof (if sought)
Post Office RD Scheme 2025: Loan Facility
- After submission of 12 installments and one year of account, you can take a loan of up to 50% of the deposits.
- The interest rate of the loan is + 2% of the interest rate of RD.
- Loan can be paid in lump sum or monthly installments.
Post Office RD Scheme 2025: Premature withdrawal
- Partial withdrawal or account can be closed only after completing 3 years.
- Penalty interest of 1.80% can be cut on premature withdrawal.
- All conditions will be applicable as per the rules of the post office.
Post Office RD Scheme 2025: Tax Rules
- TDS does not deduct the interest on RD.
- Interest may be taxed according to your total income.
- There is no tax benefit on RD.
Post Office RD Scheme 2025: Other important things
- You can open more than one RD account.
- You can transfer the account from one post office to another.
- Nominee facility is available.
- There is a facility to close prematurely, but the conditions are applicable.
- Submit it on time every month, otherwise the penalty will have to be paid.
Post Office RD Scheme 2025: Comparison with other savings scheme
| Scheme name | Interest Rate (2025) | Duration | tax benefit | Minimum investment |
| Post Office RD | 6.5%-7.5% | 5 years | No | ₹ 100 |
| Post Office FD | 6.9%-7.5% | 1-5 years | Tax exemption on 5 years FD | ₹ 1,000 |
| commission | 7.1% | 15 years | Yes | ₹ 500/year |
| Sukanya prosperity | 8.2% | 21 years | Yes | ₹ 250 |
Post Office RD Scheme 2025: Frequently Asked Questions (FAQs)
Q1. Is the investment in post office RD safe?
Yes, this is a completely guaranteed and safe scheme by the government.
Q2. Can RD account open online?
Yes, now RD account can also be opened with the post office website or mobile app.
Q3. Does RD get tax exemption?
No, there is no tax exemption on RD. Interest is taxable by joining your income.
Q4. What will happen if the installment is missed?
Every ₹ 100 will be fined ₹ 1. Missing 4 consecutive installments can be closed.
Q5. Can RD account be transferred?
Yes, you can transfer your RD account from one post office to another.
Disclaimer:
Post Office RD Scheme 2025 is a real and government -recognized savings scheme. Investment in this is completely safe and guaranteed returns. However, interest rates may change from time to time and tax rules can also be updated, so check the latest information from the post office or authorized portal before investing. This scheme is not fake, but is a popular and trusted saving scheme run by the Government of India.
conclusion:
Post Office RD Scheme 2025 is the best option for those who want to make big funds for the future by making small savings every month. Its interest rate, government guarantee, loan facility and easy rules make it attractive to every class people. If you are also thinking of safe investment, then try the post office RD Scheme 2025!
