New Delhi – The Post Office Recurring Deposit (RD) Scheme continues to be one of the safest and most popular savings schemes in India, especially for those who prefer building a substantial corpus through small monthly investments. Backed by the Government of India, this scheme offers guaranteed returns, making it a risk-free investment option.
Table of Contents
In this article, we explore the Post Office RD Scheme 2025 in detail — including its interest rate, features, eligibility, and how investors can potentially accumulate up to ₹18 lakh in 5 years.
Key Features of Post Office RD Scheme 2025
| Detail | Information |
|---|---|
| Scheme Name | Post Office Recurring Deposit (RD) |
| Interest Rate | 6.70% per annum (compounded quarterly) |
| Minimum Deposit | ₹100 per month |
| Maximum Deposit | No upper limit |
| Duration | 5 years (60 months) |
| Premature Closure | Allowed after 3 years |
| Loan Facility | Up to 50% of deposited amount |
| Tax Benefit | No TDS applicable |
Why Choose Post Office RD?
- Government-Backed Safety
The scheme is fully supported by the Government of India, ensuring complete safety of your funds. - Start Small
Begin investing with as little as ₹100 per month, making it accessible for all income groups. - Attractive Interest Rate
Currently offering 6.70% annual interest compounded quarterly, it provides better returns than most traditional savings accounts. - Flexibility and Liquidity
There is no cap on maximum deposits, and you can withdraw funds after three years in case of emergencies. - Loan Facility
Investors can avail up to 50% of the accumulated amount as a loan.
How Much Can You Earn?
Interest in this scheme is compounded quarterly. The formula for maturity amount is:
A = P(1 + R/400)^(4T)
Where:
- A = Maturity Amount
- P = Monthly Deposit
- R = Annual Interest Rate
- T = Tenure in Years
Example:
For a monthly investment of ₹3,000 for 5 years at 6.70% interest:
A = ₹2,14,097
Post Office RD Maturity Calculator
| Monthly Investment | Interest Earned | Maturity Amount |
|---|---|---|
| ₹1,000 | ₹11,366 | ₹71,366 |
| ₹2,000 | ₹22,732 | ₹1,42,732 |
| ₹3,000 | ₹34,097 | ₹2,14,097 |
| ₹5,000 | ₹56,829 | ₹3,56,829 |
Rules You Should Know
- Minimum monthly deposit is ₹100.
- No upper limit on monthly deposit.
- Minimum age to open an account is 10 years (with guardian’s consent).
- Premature closure allowed only after 3 years.
- Late deposit attracts a nominal penalty.
How to Open an RD Account?
- Visit your nearest post office or apply online.
- Submit necessary documents like Aadhaar, PAN, and a passport-size photo.
- Fill the application form and deposit the initial amount (minimum ₹100).
- Collect your passbook containing all account details.
Who Should Invest?
- Ideal for salaried individuals, homemakers, and anyone with a fixed income.
- Great for saving for children’s education, marriage, or other long-term goals.
- Provides a stable, low-risk investment route with assured returns.
Conclusion
The Post Office RD Scheme 2025 is a reliable and secure option for those looking to save regularly and earn guaranteed returns. With government backing, no market risk, and easy accessibility, it is a smart choice for long-term financial planning.
Disclaimer: This article is for informational purposes only. Please verify all details and consult a financial advisor before making any investment decisions.