Find the maturity value of a post office recurring deposit at the current 6.7% rate.
Post Office RD rules
- Tenure 5 years (extendable by 5 more).
- Minimum ₹100 a month, no maximum.
- Interest 6.7%, compounded quarterly.
- Deposit by the 15th if the account was opened before the 16th, else by month-end; late deposits attract a small default fee.
- Loan up to 50% of balance after 12 instalments.
- Interest is taxable; no TDS is deducted by the post office.
Example
₹5,000 a month for 5 years at 6.7%: deposited ₹3,00,000, maturity about ₹3,56,800.
Rates change. The default rate is the one announced for the current quarter. You can type a different rate any time — the result updates instantly.
Also see the post office FD calculator and bank RD calculator.
How to use the post office RD calculator
- Enter the monthly amount — minimum ₹100, in multiples of ₹10, no upper limit.
- The rate is pre-filled with the current 6.7% (fixed for the full 5 years when you open the account).
- The tenure is 5 years (60 instalments); the account can be extended for another 5 years at the same rate.
- Read the maturity value, total deposit and interest.
Step-by-step: ₹1,000 a month at 6.7%
India Post compounds quarterly, exactly like a bank RD. Each of the 60 instalments earns interest for the months left:
- First instalment: 1,000 × (1 + 0.067 ÷ 4)20 = ₹1,394.
- Thirtieth instalment: 1,000 × (1.01675)10.33 = ₹1,187.
- Sixtieth instalment: about ₹1,006.
- Sum of all 60: ₹71,366 on ₹60,000 deposited — interest of ₹11,366.
The post office quotes maturity 'per ₹100 per month' — currently about ₹7,137 for every ₹100 of monthly deposit.
Worked examples
| Situation | Working | Answer |
|---|
| ₹5,000 a month | ₹3,00,000 deposited | ₹3,56,829 |
| ₹10,000 a month | ₹6,00,000 deposited | ₹7,13,658 |
| ₹2,000 a month, extended to 10 years | ₹2,40,000 deposited | about ₹3,41,700 |
Tips and common mistakes
- Default penalty is ₹1 for every ₹100 per month; after 4 defaults the account is discontinued (revivable within 2 months).
- A loan up to 50% of the balance is allowed after 12 instalments at RD rate + 2%.
- Interest is taxable but, unlike banks, the post office does not deduct TDS on RD — you must declare it yourself.
- Compare with a bank RD on the RD Calculator and with the Post Office FD Calculator.
Sources & last reviewed
Small-savings interest rates notified quarterly by the Ministry of Finance (Department of Economic Affairs); this page uses the rate for the October–December 2026 quarter. Scheme rules follow the Government Savings Promotion Act, 1873 and the 2019 scheme rules. National Savings Recurring Deposit Scheme, 2019: 5-year term, quarterly compounding.
Official sources: India Post – savings schemes · National Savings Institute
Last reviewed: 17 October 2026. Rules and rates change — if you spot something outdated, tell us and we will fix it.
Frequently asked questions
What is the post office RD interest rate?
6.7% per year for October–December 2026, compounded quarterly.
What is the maturity of ₹1,000 per month RD in post office?
About ₹71,360 after 5 years at 6.7%, on ₹60,000 deposited.
Is post office RD interest taxable?
Yes, it is added to your income, but the post office does not deduct TDS.
Can I close a post office RD early?
Yes, after 3 years, but interest is then paid at the savings-account rate.