Post Office RD Calculator — Recurring Deposit Returns

Post Office Recurring Deposit (RD) is a government-backed savings scheme from India Post where you deposit a fixed amount every month for a fixed tenure. Unlike a lump-sum fixed deposit, RD is designed for salaried households and small savers who want to build a corpus through disciplined monthly savings. The standard post office RD account runs for 5 years. Interest is compounded quarterly on your running balance, which is why long-term RD returns are higher than simple interest on the same monthly amount.

Calculate 5-year post office recurring deposit maturity with quarterly compounding at current India Post rate. For Q1 FY 2025-26, the notified post office RD rate is 7.5% p.a. with quarterly compounding. India Post revises small savings rates every quarter — verify the latest rate on indiapost.gov.in before opening an account. India Post revises small savings rates quarterly. Verify before investing. This calculator uses the indicative rate for planning; your passbook may differ slightly due to rounding.

Post office RD suits anyone who can save ₹500–₹10,000 per month for 5 years without needing the money earlier — for example, building a travel fund, child school fees, or a down-payment buffer. It is especially useful in towns where India Post branches are trusted and accessible. Compare with bank RD if your bank offers a higher rate and easier digital management; compare with PPF or SSY if you want tax-free long-term wealth instead of a 5-year lump sum at maturity.

• ₹1,000/month for 5 years at 7.5% → maturity ≈ ₹72,000 (₹60,000 deposited + ~₹12,000 interest)
• ₹5,000/month for 5 years at 7.5% → maturity ≈ ₹3.6 lakh
• ₹10,000/month for 5 years at 7.5% → maturity ≈ ₹7.2 lakh
• Compare: same ₹5,000/month in bank RD at 7.0% vs post office RD at 7.5% — post office wins on rate; bank may win on app convenience

The default post office RD tenure is 5 years (60 monthly instalments). Minimum deposit is typically ₹100 per month (₹10 in some account types — confirm at the branch). There is no strict upper cap on monthly deposit, but very large RDs are uncommon because post office RD does not offer Section 80C deduction on deposits. You can open an RD at any head post office or sub-post office with KYC documents (Aadhaar, PAN, photographs). A single account can be opened in one name; joint accounts are also available.

Each monthly instalment earns interest from the date it is credited until maturity. India Post applies quarterly compounding — interest is calculated on the accumulated balance four times a year. That is why depositing early in the month (when the branch credits it) marginally helps over 5 years. Our calculator models equal monthly deposits with quarterly compounding at the rate you enter, giving a close maturity estimate for financial planning.

Interest earned on post office RD is fully taxable in your income tax slab — it is reported as “Income from other sources”. There is no TDS exemption benefit like some bank FDs for seniors; tax treatment depends on your total income. Post office RD deposits themselves do not qualify for Section 80C (unlike PPF, NSC, or ELSS). If you are in the 30% tax bracket, a 7.5% RD yields roughly ~5.2% after tax on interest — factor that in when comparing with PPF (tax-free) or SCSS (higher rate but for seniors).

If you stop paying or close the RD before 5 years, India Post allows premature closure after 3 years with a reduced interest rate (rules are notified by the Department of Posts — confirm at the branch). Missed instalments may attract a default fee and must be paid within a specified period to keep the account active. For planning purposes, assume you will complete all 60 instalments; use this calculator only when you intend to run the full 5-year schedule.

Bank RD and post office RD work similarly (monthly deposits, fixed tenure), but rates and convenience differ. Bank RD often has better apps and auto-debit; post office RD offers sovereign safety and wide rural reach. PPF is better for 15-year tax-free goals with 80C benefit; post office RD is better for a known 5-year target amount with simpler rules. NSC and post office Time Deposit suit one-time lump sums rather than monthly savings.

1. 1
   Step 1

   Enter monthly amount.

2. 2
   Step 2

   Confirm rate and 5-year tenure.

3. ✓
   Final answer

   Review maturity corpus.

1. 1

   Enter your monthly deposit amount, confirm the annual interest rate (default matches current indicative post office RD rate), and keep tenure at 5 years.

2. 2

   The result shows estimated maturity value, total amount deposited, and interest earned.

3. 3

   Toggle scenarios — for example ₹2,000/month vs ₹5,000/month — to see how small increases in monthly savings change your 5-year corpus.

4. 4

   Link to our PPF or post office hub pages to compare schemes before you open an account.

• Free to use with instant browser-based results — no signup.

• Built for Indian rates, tax years, and units.

• Includes worked examples and FAQs on every page.

• Quarterly compounding on running balance

• All 60 instalments paid on time

• Premature closure after 3 years with reduced rate.

• Pay early in the month when possible.

• Compare with bank RD apps for convenience vs rate.

• Expecting 80C benefit — RD deposits do not qualify.

• Post office schemes in India — PPF, MIS, NSC and how to compare returnsCompare India Post PPF, SSY, NSC, MIS, SCSS and RD for rates, limits, and tax treatment.Read guide →

• India Post — indiapost.gov.in (small savings rates)
• India Post revises small savings rates quarterly. Verify before investing.
• India Post — (small savings rates)indiapost.gov.in

Plan monthly post office savings for a fixed 5-year goal with sovereign-backed returns.