Post Office 5-Year Recurring Deposit (RD) Calculator

Build Your Savings Habit, Month by Month, Securely.

Estimate Your RD Maturity Amount

Important: The interest rate is set by the government and is subject to change. The rate applicable will be the one at the time of account opening.

All About the Post Office Recurring Deposit (RD)

A Recurring Deposit, or RD, is a special kind of account where you deposit a fixed amount of money every month for a set period. It's like a piggy bank that pays you interest! The Post Office RD is a government-backed scheme, making it one of the safest and most reliable ways to build a savings habit. It helps you save systematically for your future goals, whether it's for a vacation, a new gadget, or simply building an emergency fund.

Key Highlights: Why is the Post Office RD a Great Choice?

  • Develops Saving Habit: By depositing a fixed sum every month, it instills financial discipline.
  • Guaranteed Returns: The interest rate is fixed and your returns are assured, unlike market-linked investments.
  • Extremely Safe: Being a government scheme, your money is 100% secure.
  • Very Accessible: You can start with a small monthly deposit of just ₹100.
  • Power of Compounding: Interest is compounded quarterly, which helps your money grow faster.
  • Loan Facility: You can take a loan against your RD balance in case of an emergency.

Who Can Open an RD Account?

  • A single adult who is an Indian resident.
  • A joint account for up to 3 adults.
  • A guardian on behalf of a minor child.
  • A minor above the age of 10 in their own name.

Understanding the Deposit Rules (Very Important!)

  • Monthly Deposits: You must deposit a fixed amount every month. The minimum is ₹100, and there's no maximum limit.
  • Deposit Due Date: If you open the account between the 1st and 15th of a month, your next deposit is due by the 15th of the following month. If you open it after the 15th, your due date is the last day of the following month.
  • Advance Deposits: You can deposit money for up to 5 years in advance and even get a small discount (rebate) for it.
  • What if you miss a deposit? (Default): For every ₹100 of your monthly deposit, a penalty of ₹1 is charged for each missed month. For example, if your monthly RD is ₹1,000 and you miss a payment, you'll have to pay ₹10 as a penalty along with the ₹1,000.
  • Discontinued Account: If you miss 4 consecutive monthly deposits, your account becomes discontinued. You can revive it within two months from the 4th default, but if you don't, you cannot make any more deposits.

Maturity and What Happens After 5 Years

Your RD account matures after 5 years (60 monthly deposits). You can then withdraw the full amount. If you wish, you can also extend the account for another 5 years. The interest rate applicable for the extended period will be the rate that is prevalent on the date your original account matured.

Can You Get Your Money Early? (Premature Closure & Loan)

  • Premature Closure: You can close your RD account prematurely after 3 years. However, if you do this, you will only get the interest rate applicable to a regular Post Office Savings Account (which is currently 4%).
  • Loan Facility: This is a very useful feature. After you have made 12 continuous monthly deposits, you can take a loan of up to 50% of the balance in your account. The interest on the loan is charged at the RD interest rate + 2%.

Tax Rules for Recurring Deposits

It's important to know how your RD earnings are taxed.

  • No 80C Benefit: The money you deposit in an RD is NOT eligible for tax deductions under Section 80C.
  • Interest is Taxable: The interest you earn from your RD is added to your total income and is taxed according to your income tax slab.
  • TDS Deduction: Tax Deducted at Source (TDS) is applicable. If your total interest income from all Post Office schemes (like RD, MIS, Time Deposits) is more than ₹40,000 in a financial year (₹50,000 for senior citizens), the Post Office will deduct TDS.
  • How to Avoid TDS: If your total annual income is below the taxable limit, you can submit Form 15G (for individuals under 60) or Form 15H (for senior citizens) at the beginning of the financial year to request that no tax be deducted.