Post Office RD Scheme is a popular savings scheme run by the Government of India. This scheme is especially designed for those who want to make a big fund by making small savings. In this scheme, you can get a safe and guaranteed return by depositing a certain amount every month. The post office RD scheme is not only safe, but also gives attractive interest rate to investors.
In 2025, this scheme is even more discussed as the government has made some changes in it, such as new interest rates, investment limit and duration of maturity. In this article, we will give every small and big information related to Post Office RD Scheme 2025 so that you can understand how beneficial this scheme can be for you.
Post Office RD Scheme 2025: What is this scheme?
Post Office Recurring Deposit Scheme (RD) is a savings scheme in which you deposit a certain amount every month and at the time of maturity you get interest with the original money. The scheme is especially made for middle and low income groups, who can make small savings regularly.
The biggest feature of this scheme is that your money is completely safe in this because it is supported by the government. In addition, in the post office RD scheme you get an interest rate, which is fixed by the government every quarter.
Post Office RD Scheme 2025 overview
| Speciality | Description |
| Name of the scheme | Post Office Recurring Deposit (RD) |
| Launch year | 1981 |
| Interest Rate (2025) | 6.5% – 7% (variable) |
| Minimum monthly investment | ₹ 100 |
| Maximum investment limit | No limit |
| Maturity period | 5 years |
| Premature clearance | Under some conditions |
| tax benefit | No |
Post Office RD Scheme 2025: Interest Rate
The interest rate is the most important aspect of this scheme. The interest rate of the post office RD scheme is revised every quarter. In 2025, the interest rate on this scheme can range from 6.5% to 7%.
- This interest rate is based on compounding, that is, interest is added to your deposited money every quarter.
- If you invest for 5 years regularly, you can get a lot of returns.
For example:
If you deposit ₹ 1000 every month and consider the interest rate of 6.8%, then after 5 years you will get a return of about ₹ 72,000.
Post Office RD Scheme: Investment process
Post office is very easy to invest in RD Scheme. Its process is given below:
- account opening:
- You can open an account by going to any nearest post office.
- Aadhaar card, PAN card and passport size photo is required to open an account.
- Minimum Investment:
- You can start a minimum of ₹ 100 per month in this scheme.
- There is no maximum investment limit.
- Way of Payment:
- Can pay through cash, check or auto-debit
- Online facility:
- Now the post office has also started the facility of opening and paying online account.
Post Office RD Scheme: maturity and premature withdrawal
Maturity
The maturity period of this scheme is 5 years. That is, you have to deposit monthly installment for 60 consecutive months. At the time of maturity you:
- Original amount
- Interest earned on deposit money
Both meet.
Premature clearance
If you need money, you can withdraw ahead of time under certain conditions:
- Withdrawal is possible at least one year after opening an account.
- The evacuation may be imposed a minor penalty.
Post Office RD Scheme: Benefits and Damage
Advantage
- Safe Investment: This scheme is safe due to the government being fully supported.
- Regular savings: This is an ideal choice for those who want to save small small saving regularly.
- Attractive interest rate: Return is better due to compounding interest.
- Online facility: Now it can also be managed online.
Loss
- Lack of liquidity: Premature withdrawal is fined.
- No tax benefits: You do not get any tax exemption in this scheme.
- Long period: Maturity occurs only after 5 years.
Post Office RD Scheme vs other schemes
| Speciality | Post Office RD Scheme | Bank RD Scheme |
| Interest rate | 6.5% – 7% | 4% – 6% |
| Security | High | medium |
| tax benefit | No | Available in some schemes |
| Minimum investment | ₹ 100 | ₹ 500 |
Is Post Office RD Scheme the right option for you?
This scheme can be an ideal option for those who:
- Want to save small small saving regularly.
- Want to protect your money.
- Want to get guaranteed returns.
However, if your priority is to get tax saving or high returns, then you should consider other schemes such as PPF or mutual funds.
Disclaimer:
This article is written only for the purpose of providing information. The Post Office RD Scheme is a real government scheme and the investment in it is completely safe. However, before making any kind of investment, assess your financial condition and seek expert advice.
