Post Office RD Interest Rates

Key Details of Post Office RD Interest Rates

• Tenure: 5 years (Fixed)
• Minimum Deposit: ₹100 per month (in multiples of ₹10)
• Maximum Deposit: No limit
• Compounding: Compounded quarterly

Post Office Recurring Deposit Interest Rates

The Post Office Recurring Deposit scheme currently provides a government-backed interest rate that is revised periodically.

Post Office RD rates are as of September 2026 and can change every quarter, so the applicable rate is the one in force when you open the account.

What is a Post Office Recurring Deposit?

A Post Office Recurring Deposit (National Savings RD) is a government-backed savings scheme that helps you build savings through disciplined monthly deposits, starting from just ₹100 with no upper limit. Over its fixed 5-year tenure, your money grows with quarterly compounded interest applied to each monthly instalment.

Regular payments help you earn maximum returns at maturity, while premature closure after 3 years results in returns at standard savings account interest rates.

Key Features of Post Office RD

The Post Office National Savings Recurring Deposit Account, also known as Post Office RD, offers clear features to encourage steady savings.

• Discounts for Paying in Advance: Pay 6 or 12 monthly deposits ahead of time to earn cash rebates (like ₹10 off for 6 months or ₹40 off for 12 months on a ₹100 monthly plan).
• Emergency Loans: After completing 1 year (12 payments), you can borrow up to 50% of your saved balance. The loan carries a low interest rate of the RD rate + 2%.
• Grace Period for Missed Payments: Missing a monthly payment incurs a small fee of ₹1 per ₹100. If you miss 4 months in a row, your account pauses, but you get 2 months to reactivate it.
• Early Cash-Out: You can close your RD after 3 years if needed. However, your earnings will drop to the standard Post Office saavings account interest rate instead of the full RD rate.
• Option to Extend: Once your 5-year tenure ends, you can easily extend the account for another 5 years to keep growing your funds.

How to Open a Post Office RD

A Post Office Recurring Deposit may be opened online or offline. The steps for both methods are clearly given below:

Online Method

This online method works best for investors who already hold an active Post Office Savings Account with internet or mobile banking enabled.

• Log in to Internet or Mobile Banking: Visit the official e-banking portal of India Post and sign in using your user ID and password.
• Navigate to the RD Section: Go to the deposits or savings area and choose the option to start a Recurring Deposit account.
• Enter Deposit Details: Fill in the monthly instalment amount, nominee details, and confirm the five-year tenure.
• Select the Linked Savings Account: Select your Post Office Savings Account where monthly instalments will be debited automatically from it.
• Review and Submit the Application: Carefully verify all the entered information and accept the terms and conditions before submission.
• Receive Account Confirmation: Once processed, the Post Office RD account becomes active, and the confirmation details are shown in your banking dashboard.

Offline Method

If you need assistance in person, you may open a Post Office RD by visiting the nearest post office branch. This involves completing an application form using basic supporting documents.

• Visit the Nearest Post Office: Go to your nearby post office branch and request the Recurring Deposit account opening form.
• Fill the Application Form: Submit personal details, monthly deposit amount, tenure confirmation, and nominee information.
• Submit KYC Documents: Submit valid ID proof, address proof, and photos following the latest KYC guidelines.
• Choose Mode of Deposit: Pick how you will make monthly instalments, whether by cash, cheque, or standing instruction from a savings account.
• Pay the First Instalment: Deposit the first monthly amount at the counter to activate the RD account.
• Collect Passbook and Confirmation: The Post Office will open the account and issue a passbook containing your RD details.

Eligibility Criteria for Post Office RD

The Post Office has set out clear rules for who can open a Recurring Deposit (RD) account to follow regulations and make the process easier to manage.

• Resident Investors: The scheme is available only to resident citizens of India. Applicants must provide valid KYC documents, such as identity and address proof, at the time of opening the account.
• Single Adult: Any adult can open a Post Office RD under their own name. The person manages deposits and gets the maturity amount at maturity. Nomination facility is available.
• Joint Holders: Up to three adults can together open a joint RD account through Joint ‘A’ or Joint ‘B’ mode. Joint ‘A’ means all holders must run the account together, while Joint ‘B’ lets any one holder run it.
• Minor Eligibility: An RD can be opened by a guardian on behalf of a minor. A minor aged 10 years or above may also open and operate the account independently. After turning 18, the account must be converted into an adult account with fresh KYC.
• Authorised Accounts: A guardian is allowed to open and manage an RD for someone of unsound mind. The account is operated by the guardian following Post Office rules carefully at all times.

Key Takeaways

The Post Office Recurring Deposit provides an interest rate of 6.7% yearly, compounded quarterly, across a fixed five-year term period. The minimum monthly deposit is ₹100, with no maximum limit. Backed by the Government of India, it provides a secure savings option. After 12 instalments, a loan is available, and early closure is possible after three years. The account can also be extended for an additional five years. Investors can use the Post Office RD calculator to estimate the maturity amount in advance.