- 6.7%Interest a yearCompounded every quarter
- ₹100Minimum a monthThen multiples of ₹10
- 5 years60 monthly depositsExtend by 5 years
- 50%Loan on the balanceAfter 12 instalments
What is a Post Office Recurring Deposit (RD)?
A Post Office Recurring Deposit is a savings account where you put in the same amount every month for 5 years. The government pays a fixed rate of interest on it. At the end, you get all your deposits back with the interest.
"Recurring" means it repeats every month. It suits people who can save a small amount from each month's income. It runs under the National Savings Recurring Deposit Scheme, 2019.
- Step 1Deposit every monthThe same amount, from ₹100, for 60 months.
- Step 2Earn interest6.7% a year, added every quarter.
- Step 3Get it all backAfter 5 years, or extend for 5 more.
Example: Priya, 28. She opens a Post Office RD of ₹5,000 a month at 6.7%. She pays every month for 5 years. At the end, the post office pays her the maturity amount.
- She deposits
- ₹3,00,000
- Interest earned
- ₹56,829
- After 5 years
- ₹3,56,829
Post Office RD interest rate 2026: 6.7%
The rate is 6.7% a year for October to December 2026. The Ministry of Finance reviews it every 3 months, but the rate on the day you open your account stays the same for all 5 years.
- Interest is compounded every quarter. This means interest is added every 3 months and then earns interest too.
- Each deposit earns interest from the month it is paid until maturity, so the first deposit earns the most.
- All the interest is paid at maturity, not in between.
| Period | Post Office RD rate |
|---|---|
| From October 2023 | 6.7% |
| From July 2023 | 6.5% |
| From April 2023 | 6.2% |
| From April 2020 | 5.8% |
See every past rate on the Post Office RD interest rate page.
Post Office RD maturity amount after 5 years
Maturity at 6.7%, for 60 monthly deposits:
| Monthly deposit | Total deposited | Interest | Maturity amount |
|---|---|---|---|
| ₹100 | ₹6,000 | ₹1,137 | ₹7,137 |
| ₹500 | ₹30,000 | ₹5,683 | ₹35,683 |
| ₹1,000 | ₹60,000 | ₹11,366 | ₹71,366 |
| ₹2,000 | ₹1,20,000 | ₹22,732 | ₹1,42,732 |
| ₹5,000 | ₹3,00,000 | ₹56,829 | ₹3,56,829 |
| ₹10,000 | ₹6,00,000 | ₹1,13,658 | ₹7,13,658 |
How Priya's ₹5,000 a month grows, year by year:
| End of | Deposited so far | Value |
|---|---|---|
| Year 1 | ₹60,000 | ₹62,210 |
| Year 2 | ₹1,20,000 | ₹1,28,694 |
| Year 3 | ₹1,80,000 | ₹1,99,746 |
| Year 4 | ₹2,40,000 | ₹2,75,679 |
| Year 5 | ₹3,00,000 | ₹3,56,829 |
For your own amount and tax slab, use the RD calculator.
Post Office RD eligibility: who can open an account?
- Yes: A resident Indian adult, in their own name
- Yes: Up to 3 adults together, as a joint account
- Yes: A parent or guardian, for a minor or a person of unsound mind
- Yes: A minor aged 10 or more, in their own name
- No: NRIs (non-resident Indians)
- No: HUFs (Hindu Undivided Families)
- No: Trusts, companies and other institutions: the 2019 scheme is only for individuals
You can open any number of RD accounts. In a Joint A account, the money is paid to all holders together. In a Joint B account, it can be paid to any one of them.
How to open a Post Office RD account: documents and steps
- Step 1Visit a post officeAny post office. If you have a post office savings account, you can also open one online.
- Step 2Fill in the formThe RD account opening form, also on the India Post website.
- Step 3Give KYC documentsAadhaar, PAN and a passport-size photo.
- Step 4Pay the first depositIn cash or by cheque. This amount is your monthly deposit.
- Step 5Add a nomineeSo your family can claim the money easily.
- Step 6Get your passbookEach deposit is entered in it.
Documents to carry:
| Who | Documents |
|---|---|
| Everyone | Filled account opening form, Aadhaar, PAN, passport-size photo |
| For a minor | Proof of the child's date of birth, and KYC documents of the parent or guardian |
| Joint account | KYC documents of every holder |
Post Office RD deposit rules and due date
- Amount: at least ₹100 a month, in multiples of ₹10. No maximum.
- Same amount every month: the first deposit fixes the monthly amount. It cannot be changed later.
- Due date: if you open the account between the 1st and the 15th, pay by the 15th of each month. If you open it after the 15th, pay by the last working day of each month.
- How to pay: at the post office in cash or by cheque, or online through India Post internet banking or the IPPB app, if your accounts are linked.
Missed instalment, default fee and revival rules
- Step 1Missed a monthPay it later with a fee of ₹1 per ₹100 for each month. On ₹5,000: ₹50 a month.
- Step 2Up to 4 missedThe term is extended by the same number of months, so you can still make all 60 deposits.
- Step 3More than 4 missedThe account is discontinued. Revive it within 2 months of the fourth missed instalment by paying all dues with the fee.
A discontinued account that is not revived in time cannot be restarted.
Post Office RD advance deposit rebate
You can pay future instalments in advance and get a small discount, called a rebate. The rebate depends on how many months you pay at once:
| Months paid in advance | Rebate per ₹100 a month | Rebate on a ₹1,000 RD |
|---|---|---|
| Less than 6 | ₹0 | ₹0 |
| 6 to 11 | ₹10 | ₹100 |
| 12 | ₹40 | ₹400 |
Post Office RD loan rules
- When: after 12 monthly deposits, once the account has run for 1 year without being discontinued.
- How much: up to 50% of the balance in the account. You can take it as one loan.
- Interest: 2% more than the RD rate, so 8.7% on an account opened at 6.7%.
- Repaying: in one go or in monthly instalments. Anything still unpaid at maturity is taken from the maturity amount.
Example: Priya's loan. After 12 months, Priya has deposited ₹60,000. She needs money for a family function and takes a loan against her RD.
- Deposited
- ₹60,000
- Loan up to
- ₹30,000
- Loan interest
- 8.7%
Post Office RD premature closure rules
You can close the RD early, but only after 3 years, and you then get a lower rate. For ₹5,000 a month:
- If Priya closes after 36 deposits, she gets about ₹11,100 in interest. Had her deposits earned the RD rate, the interest would be about ₹19,746.
- An account with advance deposits cannot be closed until the advance period is over.
- To close, submit the closure form with your passbook at the post office.
Post Office RD maturity and extension
After 60 deposits, the account matures. You can take the money, or extend the account for 5 more years in one of two ways:
- With deposits: keep paying the same amount every month for up to 5 more years. Apply at the post office.
- Without deposits: leave the maturity amount in the account for up to 5 years. It keeps earning interest.
- An extended account can be closed at any time.
Nominee, death of the account holder and transfer
- Step 1NomineeAdd one or more nominees when you open the account, or later at the post office.
- Step 2If the holder diesNo more deposits are taken. The nominee or legal heirs can claim the money.
- Step 3Moving cityTransfer the account to another post office. The rate and term stay the same.
Post Office RD tax rules and TDS
- No deductionOn the depositsNot under Section 123 (earlier 80C)
- TaxableInterestAt your slab rate
- ₹50KSenior interest deductionOld regime, Section 153 (earlier 80TTB)
- 10% TDSIf interest is over ₹50KForm 121 stops it if your tax is nil
- On the deposits: the 5-year Post Office RD does not give a tax deduction under Section 123 (earlier 80C).
- On the interest: RD interest is added to your income and taxed at your slab rate. You can show it every year as it grows, or in the year of maturity.
- Senior citizens: in the old regime, residents aged 60 or more can deduct up to ₹50,000 of bank and post office interest a year under Section 153 (earlier 80TTB).
- TDS: 10% TDS may be cut if your interest from the post office is more than ₹50,000 in a year (₹1,00,000 for senior citizens). If your total income is below the taxable limit, give Form 121 (it replaced Forms 15G and 15H from April 2026). Any extra TDS comes back when you file your return.
Post Office RD: strengths and limits
- Yes: Backed by the Government of India
- Yes: Fixed rate for all 5 years
- Yes: Start with just ₹100 a month
- Yes: Loan of up to 50% after 1 year
- No: Interest is taxable, no tax deduction
- No: Cannot be closed in the first 3 years
- No: Early closure pays only the savings rate
- No: Fee for every missed month
Post Office RD vs bank RD vs SIP
| Post Office RD | Bank RD | SIP in a mutual fund | |
|---|---|---|---|
| Return | 6.7%, fixed | Fixed, set by each bank | Not fixed: goes up and down with the market |
| Term | 5 years | Usually 6 months to 10 years | No fixed term |
| Minimum | ₹100 a month | Set by each bank | Set by each fund |
| Early exit | After 3 years, at the savings rate | Usually any time, with a small penalty | Any time, with an exit load in some funds |
| Missed instalment | Default fee each month | Penalty set by the bank | Usually no fee from the fund |
| Safety | Government of India | Bank, with DICGC deposit insurance | Market risk |
| Tax | Interest at your slab rate | Interest at your slab rate | Capital gains tax on profit |
Compare the numbers on the RD calculator and the SIP calculator.
Frequently asked questions
What is a Post Office Recurring Deposit?
It is a 5-year savings account at the post office. You deposit the same amount every month for 60 months. The money earns 6.7% a year, compounded every quarter, and you get it all back with interest at the end.
What is the Post Office RD interest rate in 2026?
6.7% a year for October to December 2026, compounded every quarter. The rate on the day you open the account stays the same for all 5 years.
What is the minimum amount for Post Office RD?
₹100 a month, and more in multiples of ₹10. There is no maximum. The amount you pick at the start stays the same every month.
How much will I get if I deposit ₹5,000 a month in Post Office RD?
About ₹3,56,829 after 5 years at 6.7%. You deposit ₹3,00,000 in total, and earn about ₹56,829 in interest.
What happens if I miss a Post Office RD instalment?
You pay the missed instalment later with a default fee of ₹1 for every ₹100 for each month of delay. For a ₹5,000 RD, that is ₹50 a month. Up to 4 missed instalments, the term is extended by the same number of months.
How can I revive a discontinued Post Office RD?
If you miss more than 4 instalments, the account is treated as discontinued. You can revive it only within 2 months from the month of the fourth missed instalment, by paying all missed instalments with the default fee. After that, it cannot be revived.
Can I take a loan on Post Office RD?
Yes. After 12 instalments and 1 year, you can borrow up to 50% of the balance. The interest is 2% more than the RD rate, so 8.7% now. You can repay it in one go or in monthly instalments. Anything unpaid is taken from the maturity amount.
Can I close Post Office RD before 5 years?
Yes, but only after 3 years. You then get your deposits with interest at the Post Office Savings Account rate (4% now), not the RD rate.
Can I extend Post Office RD after 5 years?
Yes, for 5 more years. You can keep depositing every month, or just leave the maturity amount in the account without new deposits.
Is Post Office RD interest taxable?
Yes, at your slab rate. The deposits do not get a tax deduction under Section 123 (earlier 80C). TDS of 10% may be cut if your interest from the post office is more than ₹50,000 in a year (₹1,00,000 for senior citizens).
Is there a rebate for paying Post Office RD in advance?
Yes. For every ₹100 of monthly deposit, you get ₹10 off for paying 6 months in advance, and ₹40 off for 12 months. For a ₹1,000 RD, that is ₹100 and ₹400.
Which is better: Post Office RD or SIP?
They are different. A Post Office RD gives a fixed, government-backed return. A SIP in a mutual fund has no fixed return: it can earn more over many years, but its value can also fall. The right choice depends on your goal and how much risk you can take.