Post Office RD Calculator

How is post office RD maturity calculated?

Each monthly instalment earns 6.7% a year, compounded every quarter, for the months it stays in the account. Added up over 60 instalments, ₹100 a month pays exactly ₹7,136.58, the figure the government notifies. Other amounts are in proportion, rounded to the nearest rupee: ₹5,000 a month is 50 × ₹7,136.58 = ₹3,56,829.

Maturity value = Σ instalment × (1 + 6.7% ÷ 4)^{months left ÷ 3}, over all 60 instalments.

On ₹5,000 a month:

Nearly two-thirds of the interest is earned in the last two years, because by then most of your money is in the account. Calculators that compound monthly or yearly give slightly different figures from what the post office pays.

Post office RD maturity table

At 6.7%, the post office pays back about 1.19 times what you deposit over 5 years.

What is the post office RD interest rate?

6.7% a year for October to December 2026, unchanged since 1 October 2023. The Finance Ministry reviews it every quarter, but your account keeps the rate of the month you opened it. If you opened yours earlier, use its rate:

An RD of ₹5,000 a month opened in 2022 at 5.8% therefore matures at ₹3,48,484, about ₹8,345 less than one opened today.

What happens if you miss an instalment?

You pay ₹1 for every ₹100 of the instalment for each month it is late, along with the missed amount. After more than 4 missed instalments the account is discontinued.

• Due date: by the 15th of each month if you opened the account on or before the 15th; otherwise by the last working day of the month.
• Fee example: on a ₹5,000 RD, one instalment paid two months late costs ₹100 (₹50 × 2).
• Up to 4 defaults: you can push maturity back by the number of missed months and pay the missed instalments in that time.
• More than 4: the account is discontinued. You can revive it within 2 months of the fourth default by paying all arrears and fees; after that, no more deposits are accepted, and the balance stays in the account to earn interest.

Can you pay instalments in advance?

Yes, and you get a rebate: ₹10 per ₹100 for paying 6 instalments in advance, and ₹40 per ₹100 for every 12.On a ₹5,000 RD, paying a year’s ₹60,000 at once saves ₹2,000, and the rebate can be taken off what you pay. You can pay up to 5 years in advance, at opening or later, but the account cannot be closed early until the period you have paid for has passed.

Can you take a loan against a post office RD?

Yes. After 12 instalments and one year, you can borrow up to 50% of the amount deposited, at the RD rate plus 2% (now 8.7%), charged as simple interest. After a year of ₹5,000 a month, that is up to ₹30,000. Repay in one go or in monthly instalments; anything still owed, with interest, is taken out of the maturity amount. A loan at 8.7% usually costs much less than a personal loan, and your RD keeps growing at 6.7%.

Can you close a post office RD early?

Only after 3 years, and then the whole deposit earns the post office savings account rate (4%) instead of the RD rate.

If you need cash for a short time, the loan is usually cheaper than closing the account. The figures at the savings rate are estimates; the post office works out the exact amount.

Can you extend a post office RD after 5 years?

Yes, for up to 5 more years at the original rate, either continuing your monthly deposits or leaving the maturity amount in without new deposits. Apply at your post office on the extension form.

These are the government’s values for accounts opened from October 2023 (G.S.R. 818(E)), and the calculator reproduces them exactly. ₹5,000 a month continued for 10 years in total grows to ₹8,54,273 on ₹6,00,000 deposited; stopping deposits at 5 years and leaving ₹3,56,829 in for 5 more gives ₹4,97,444. An extended account can be closed at any time; for part of a year, the savings account rate applies to those months.

Is post office RD interest taxable?

Yes, at your slab rate, and there is no tax deduction for investing in it. The ₹56,829 earned on ₹5,000 a month is worth about ₹51,000 after tax at the 10% slab and ₹39,098 at the 30% slab, including cess. Declare the interest in your return each year as it accrues, or in the year of maturity, but be consistent. For a 5-year deposit that does qualify for a deduction in the old regime, see the NSC Calculator.

Post office RD vs bank RD vs SIP

The post office RD is backed by the Government of India and pays 6.7%, more than most large banks’ 5-year RDs for general customers, but it locks your money for 3 years and pays no extra to senior citizens. A bank RD can be closed any time with a small penalty, and many banks add 0.5% for seniors. A SIP in an equity fund has no guaranteed return but has historically done better over 5 years or more. Compare a bank RD in the RD Calculator and a SIP in the SIP Calculator.

Who can open a post office RD, and how?

• Single: any resident Indian adult, a guardian for a minor or a person of unsound mind, or a child aged 10 or more in their own name.
• Joint: up to three adults.
• Any number of accounts can be opened. The first deposit, from ₹100 in multiples of ₹10, sets the monthly amount, which cannot be changed later.
• Paying instalments: at the post office, or online through the India Post Payments Bank app or post office internet banking, once linked to your RD.
• Death of the holder: the nominee or legal heirs are paid, or up to three of them can continue the account to maturity in their own names.

When to use a different calculator

• An RD with a bank? Use the RD Calculator.
• Investing a lump sum for 5 years? Use the NSC Calculator or the FD Calculator.
• Saving monthly for 15 years, tax-free? Use the PPF Calculator.
• Saving for a daughter under 10? Use the Sukanya Samriddhi Yojana Calculator.