Post Office RD Calculator
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What This Tool Does
This calculator estimates the maturity value of a Post Office Recurring Deposit (RD) — India Post’s monthly savings scheme — based on your monthly deposit, the interest rate, and tenure. Enter your numbers and it shows total investment, interest earned, and maturity amount instantly.
You can also use this Average Calculator.
How It’s Calculated
Post Office RD interest compounds quarterly, even though deposits are made monthly. The maturity formula used is:
M = R × [(1 + i)ⁿ − 1] ÷ [1 − (1 + i)^(−1/3)]
Where R is the monthly deposit, i is the quarterly rate (annual rate ÷ 400), and n is the number of quarters in the tenure.
As of FY2026–27, the Post Office RD interest rate is 6.7% per annum, compounded quarterly. This rate is reviewed by the government each quarter, so it can change — always confirm the current rate before relying on a projection.
Worked example: Depositing ₹2,000 a month for 5 years (20 quarters) at 6.7%:
- i = 6.7 ÷ 400 = 0.01675
- Total deposited over 5 years: 2,000 × 60 = ₹1,20,000
- Applying the formula gives a maturity value of approximately ₹1,42,700
- Estimated interest earned: roughly ₹22,700
These are close approximations, use the calculator above for an exact figure at today’s rate.
Edge Cases and Special Rules
- Minimum and multiples: Accounts can be opened with as little as ₹100 a month, with deposits in multiples of ₹10 and no upper limit.
- Missed deposits: A missed monthly deposit attracts a default fee of roughly ₹1 per ₹100 of the missed amount, charged for each month it remains unpaid. Missing five consecutive deposits can lead to account inactivation.
- Loan facility: After 12 regular deposits, account holders can borrow up to 50% of the balance, typically at the RD rate plus about 2%.
- Tenure extension: The standard 5-year term can be extended by another 5 years through a formal application at the post office.
- Premature closure: Withdrawing before maturity is restricted and can reduce your effective return significantly — check current terms at your post office before closing early.
Post Office RD vs. Bank RD
Post Office RDs and bank RDs both compound quarterly, but rates and rules differ by institution and can move independently of each other. Post Office rates are set by the government and reviewed quarterly, while individual banks set their own RD rates based on their own funding needs. It’s worth comparing both before committing, especially since bank RD tenures are often more flexible than the post office’s fixed structure.
Who Uses This
- Salaried individuals building disciplined monthly savings
- Parents opening accounts for children (minors aged 10+ can hold one)
- Anyone comparing Post Office RD returns against bank RDs or other savings schemes
- Depositors planning ahead to hit a specific savings target by a set date
RD Maturity Amount vs. Interest Earned
These get mixed up sometimes. The maturity amount is the total payout at the end of the tenure — your deposits plus all interest earned. Interest earned is just the growth portion, calculated as maturity amount minus total deposited. The calculator above shows both separately so you can see how much of your final payout came from your own contributions versus compounding.
FAQ
Who can open a Post Office RD account?
Any Indian resident aged 18+, or a minor aged 10+ through a guardian, can open one.
Is there a higher RD interest rate for senior citizens?
No — Post Office RD applies the same rate to all depositors regardless of age; only the TDS threshold on interest differs by age.
Are Post Office RD returns taxable?
Yes, interest earned is taxable according to your income tax slab, and TDS applies above a set threshold.
Can I close my RD account early?
Early closure is restricted and can reduce your return — check the current terms before deciding.
How often does the interest rate change?
It’s reviewed by the government every quarter, though it doesn’t always change each time.
Try It Above
Enter your monthly deposit, the current interest rate, and your tenure in the calculator above to get an instant maturity estimate. Figures are approximate and for general planning only — confirm the exact current rate and terms with India Post before opening an account.