Post office RD maturity table
| Every month | Paid in | After 5 years |
|---|---|---|
| ₹500 | ₹30,000 | ₹35,683 |
| ₹1,000 | ₹60,000 | ₹71,366 |
| ₹2,000 | ₹1,20,000 | ₹1,42,732 |
| ₹5,000 | ₹3,00,000 | ₹3,56,829 |
| ₹10,000 | ₹6,00,000 | ₹7,13,658 |
At 6.7% a year, compounded quarterly. Extended for another 5 years, ₹5,000 a month becomes about ₹8,54,273. Try your own amount with the RD calculator.
Recurring deposit at a glance
| Interest rate | 6.7% a year (October–December 2026), compounded quarterly, fixed for the term |
|---|---|
| Instalment | ₹100 a month minimum, then multiples of ₹10; no maximum |
| Term | 5 years (60 instalments); can be extended for 5 more |
| Who can open | Resident adults, singly or jointly (up to three); a guardian for a minor; a minor of 10 or more |
| Loan | After 12 instalments: up to 50% of the balance |
| Early closure | After 3 years, at the savings account rate |
| Tax | Interest taxable; no 80C deduction |
| Where to open | Any post office, or online through India Post internet banking |
Instalments, defaults and loans
- Due date: if the account was opened between the 1st and 15th, pay each instalment by the 15th of the month; if opened after the 15th, by the end of the month.
- Missed instalments: a default fee of ₹1 for every ₹100 a month is charged. After four missed instalments in a row the account is discontinued; it can be revived within two months by paying all the arrears.
- Loan: once 12 instalments are paid and the account is a year old, you can borrow up to 50% of the balance at 2% above the RD rate, repaid in one sum or in monthly instalments before maturity.
Closing early and extending
An RD can be closed after 3 years; interest is then paid at the post office savings account rate, not the RD rate. At maturity you can extend it for another 5 years, with or without further instalments, at the rate the account was opened at, and close the extended account at any time.
Tax on post office RD
RD interest is added to your income and taxed at your slab rate, under either regime, in the year it accrues. The deposits do not qualify for Section 80C.
RD compared with the alternatives
- PPF pays 7.1% with tax-free interest, and also accepts monthly deposits, but runs for 15 years.
- A mutual fund SIP can earn more over 5 years but carries market risk.
- Bank RDs pay different rates by bank; compare on bank FD rates.
- The 5-year time deposit pays 7.5% if you have a lump sum instead.
Frequently asked questions
What is the post office RD interest rate for October–December 2026?
6.7% a year, compounded quarterly. The rate on the day you open the account is fixed for the full 5 years.
How much will ₹5,000 a month in post office RD give after 5 years?
₹3,56,829 at 6.7%, from ₹3,00,000 paid in. That is ₹56,829 of interest.
What is the minimum amount for a post office RD?
₹100 a month, and then any amount in multiples of ₹10. There is no maximum.
What happens if I miss a post office RD instalment?
You pay the missed instalment with a default fee of ₹1 for every ₹100 a month. After four missed instalments in a row the account is discontinued, but it can be revived within the next two months.
Can I close a post office RD before 5 years?
Yes, after 3 years. You then get interest at the post office savings account rate rather than the RD rate.
Can I take a loan against a post office RD?
Yes, after 12 instalments and a year from opening: up to 50% of the balance, at 2% above the RD rate, repaid in one go or in instalments.
Sources
- National Savings Institute – Recurring Deposit Account
- Department of Economic Affairs – small savings interest rates
- India Post – savings schemes
Last checked on 6 October 2026. The rate for new accounts is reviewed every quarter; an account keeps the rate it was opened at.