The Post Office RD ₹3,000 per month for 5 Years is a government- sponsored savings programme in which a customer can set up a corpus by depositing a certain amount of money on a monthly basis. The scheme offers 6.7% per annum, compounded quarterly, as announced under Post Office Small Savings Schemes by the Ministry of Finance.
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Understanding the Post Office RD ₹3,000 Monthly Plan
Post Office Recurring Deposits are savings options where one can deposit a certain amount every month over a period of five years. Each monthly deposit accrues interest from the date of deposit, and the interest is compounded quarterly until maturity. This scheme is steady and dependable as it is guaranteed by the Government of India. Consistent monthly payments foster disciplined savings and support systematic wealth growth.
How ₹3,000 Monthly Investment Grows Over 5 Years
Recurring deposits are calculated quarterly, with every monthly instalment earning interest over the remaining time until maturity.
Estimated Return Calculation
The RD maturity works on the basis of the following formula
Note: The returns are estimates and may be subject to change based on prevailing interest rates.
Key Features of Post Office RD Scheme
The Post Office RD Scheme is a government-regulated flexible savings option, which provides disciplined investment together with convenience in account management. Key features include:
Minimum Deposit: The minimum amount is ₹100 per month in multiples of ₹10, and the amount is very affordable to investors with various savings and targets.
No Maximum Limit: There is no limit on the maximum amount of monthly deposits, and the investors can deposit more money provided they have the financial capacity to do so and their saving goals allow them.
Quarterly Compounding: Compounding of interest is done quarterly, which is better in the long run, and the value of the maturity is high since monthly deposits are made during the tenure.
Default Penalty: A default penalty of ₹1 for every ₹100 of the instalment amount is charged for each month of delay, encouraging timely deposits while allowing flexibility during temporary financial constraints.
Transfer Facility: It can also be transferred between CBS-enabled Post Offices in other parts of India, and therefore, account holders who relocate or change addresses during the tenure find it convenient.
Nomination Facility: Investors are at liberty to change or add nominee details at any time throughout the account tenure period, so that transfer of funds to the nominated person can be easily made in times of unexpected events.
Account Extension: The RD account may be further extended after a period of five years, as per the Post Office regulations, and further savings and interests may be earned.
Eligibility to Open a Post Office RD ₹3,000 Account
Under Post Office Savings Bank rules, the following customer profiles can open an RD account:
Single adult resident aged 18 years or above
Joint account (up to three adults)
Minor above 10 years or guardian-operated account
Guardian for a person of unsound mind
Individuals may open multiple RD accounts
Notes: When a minor account holder turns 18 years old, they must submit a new Account Opening Form (AOF) along with updated KYC documents to convert the account into an adult account.
RD accounts can also be opened through e-Banking or Mobile Banking facilities. A Post Office Savings Account is mandatory to use the internet banking services.
How to Open a Post Office RD ₹3,000 Account
The account can be opened either online or offline.
Online Method (IPPB App)
Using the IPPB mobile app, you can open a Post Office RD ₹3,000 account online by following the steps below:
Download and Log in: Install the IPPB app and Sign in.
Check Savings Account: Be sure that your IPPB savings account is active.
Select Recurring Deposit: Choose RD under DOP Products.
Enter Details: Add ₹3,000 amount, tenure, and nominee.
Fund or Set Auto Payment: Transfer funds or enable auto debit.
Confirm Activation: Check information and create the account.
Offline Method (Post Office Branch)
You can open a Post Office RD ₹3,000 account offline by attending a Post Office branch and following these steps:
Visit Post Office Branch: Visit your local Post Office.
Fill Application Form: Fill the account opening form of RD.
Submit KYC Documents: Provide address and identity evidence.
Select Account Type: Select between single, joint, or minor account.
Deposit First Instalment: Pay the first instalment of ₹3,000.
Receive Passbook: Take your passbook with account details in it.
Loan, Default, and Withdrawal Rules
Post Office RD ₹3,000 scheme allows flexible rules of deposit, borrowing, and withdrawal, and encourages regular savings. Key provisions include:
Default Rules
If four consecutive monthly instalments are missed, the account becomes discontinued. It may be revived within the prescribed period by paying the pending instalments along with the applicable default penalty.
Loan Facility
Depositors can avail a loan of up to 50% of the balance in the account after completing 12 monthly instalments. The loan carries interest at 2% above the applicable RD interest rate and may be repaid in a lump sum or instalments. If the account balance reaches approximately ₹36,000 after one year, a loan of up to ₹18,000 may be available.
Premature Closure
Premature closure of the RD account is permitted after three years from the date of account opening. In such cases, interest is calculated at the prevailing Post Office Savings Account rate (currently 4% per annum), resulting in comparatively lower returns.
Taxation on Post Office RD ₹3,000 Plan
Interest accrued on a Post Office Recurring Deposit scheme is subject to tax under the head Income from Other Sources, and it has to be reported in the filing of income tax returns. According to the current tax provisions of Section 194A, TDS is paid when the total interest on the deposit is more than ₹50,000 for a general citizen and ₹1,00,000 for a senior citizen in a financial year. The general deduction rate is 10% on Tax Deducted at Source (TDS) on the provision of PAN, and a higher rate in the case of not providing PAN. The deposits under this scheme are not deductible under the Income Tax Act Section 80C.
Key Takeaways
The Post Office RD ₹3000 per month for 5 years is a savings option with government support, giving reliable monthly returns and interest at 6.7% calculated every quarter. It encourages responsible savings and offers dynamic services like the option of various account types, a loaning facility and an account transfer. The scheme guarantees capital and intended wealth accumulation.
Frequently Asked Questions
Will I be able to deposit over ₹3,000 in the Post Office RD scheme per month?
No, there is no maximum amount of the deposit in the post office RD scheme. Investors can also invest more than ₹3,000 by either having several RDs or just by increasing their monthly instalment according to income and financial objectives.
Can I make any changes in the number of monthly deposits after the RD account is opened?
No, the amount of the monthly deposit cannot be changed once the RD account is opened. Investors have to open a new RD account with the preferred amount of monthly contribution to invest a different sum.
Can you make an advance deposit in the Post Office RD ₹3,000 scheme?
Yes, it is possible to make the advance deposits up to a maximum of five years in the Post Office RD scheme. Investors can deposit up to five years' instalments in advance. A rebate is available for advance deposits of six months or more, as per applicable Post Office rules.
Can I extend my Post Office RD account after 5 years?
Yes, the Post Office RD account may be renewed after the first five years, according to the relevant regulations. This will enable investors to keep on saving and earning interest without necessarily opening up a new account.
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
Past 10 Years' annualised returns as on 01-02-2026
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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