Post Office RD Calculator
Calculate the maturity amount and interest earned on your Post Office Recurring Deposit (National Savings Recurring Deposit Account).
Deposit Details
Standard PO RD is 5 years. Can be extended up to 10 years.
Compounded quarterly
Maturity Amount
After 5 years
Total Investment
60 monthly deposits
Total Interest
Guaranteed returns
Wealth Distribution
RD Insights
Your total investment of ₹3,00,000 will grow to ₹3,56,829 in 5 years.
Interest makes up 15.9% of the final maturity amount.
Tax Note: The interest earned of ₹56,829 is taxable as per your income tax slab.
Year-on-Year Growth
| Year | Total Investment | Total Interest | Balance |
|---|---|---|---|
| Year 1 | ₹60,000 | ₹2,210 | ₹62,210 |
| Year 2 | ₹1,20,000 | ₹8,694 | ₹1,28,694 |
| Year 3 | ₹1,80,000 | ₹19,746 | ₹1,99,746 |
| Year 4 | ₹2,40,000 | ₹35,679 | ₹2,75,679 |
| Year 5 | ₹3,00,000 | ₹56,829 | ₹3,56,829 |
Understanding Post Office Recurring Deposit (RD)
The National Savings Recurring Deposit Account (Post Office RD) is a popular savings scheme backed by the Government of India. It allows small investors to save a fixed amount every month for a tenure of 5 years, providing guaranteed returns and high security.
Key Features of Post Office RD
- Guaranteed Returns: Being a government-backed scheme, the returns are guaranteed and risk-free.
- Low Minimum Deposit: You can start an RD with as little as ₹100 per month.
- Compounding: Interest is compounded quarterly, which provides better returns compared to simple interest.
- Tenure: The standard maturity period is 5 years, but it can be extended for another 5 years.
- Loan Facility: You can avail a loan up to 50% of the balance after 12 installments are deposited.
How is Post Office RD Interest Calculated?
The interest on a Post Office RD is compounded quarterly. This means that every three months, the interest earned is added to your principal amount, and the next quarter's interest is calculated on this new, higher principal.
Formula used:
M = P × (1 + r/4)^(n/3)
Where M is Maturity, P is monthly deposit, r is annual interest rate, and n is the number of months remaining.
Premature Closure Rules
You can prematurely close a Post Office RD account after 3 years from the date of opening. However, if you close it prematurely, the interest payable will be the Post Office Savings Account interest rate (currently 4.0%), not the RD interest rate.
Frequently Asked Questions
What is a Post Office Recurring Deposit (RD)?
A Post Office Recurring Deposit (National Savings Recurring Deposit Account) is a government-backed savings scheme that allows you to save a fixed amount every month for a tenure of 5 years, earning a guaranteed interest rate.
What is the current interest rate for Post Office RD?
The interest rate for Post Office RD is reviewed quarterly by the government. Currently, it offers an interest rate of 6.7% per annum, compounded quarterly.
What is the minimum and maximum investment limit?
The minimum amount for opening a Post Office RD is ₹100 per month, and any amount in multiples of ₹10 thereafter. There is no maximum limit on the investment amount.
What is the maturity period of Post Office RD?
The standard maturity period is 5 years (60 monthly deposits). However, you can extend the account for another 5 years after maturity, keeping the same interest rate at which the account was originally opened.
Are there any tax benefits on Post Office RD?
No, investments in Post Office RD do not qualify for tax deductions under Section 80C. The interest earned is also taxable as per your income tax slab. However, TDS is not deducted on the interest earned.