Worked example
Example with the default numbers — change them above.
Monthly deposit: ₹5,000
Paying ₹5,000 a month into a post office recurring deposit for 5 years at 6.7% gives ₹3.57 L, of which ₹56,829 is interest.
| Maturity value | ₹3.57 L · After 5 years |
|---|---|
| Total you deposit | ₹3 L · ₹5,000 × 60 months |
| Interest earned | ₹56,829 · 16% of the final amount |
How the Post Office RD Calculator works
- Enter the amount you will pay in every month (from ₹100).
- The calculator adds 60 monthly instalments over 5 years and applies the notified rate with quarterly compounding.
- Each instalment earns interest from the month it is paid until maturity, so the first ones earn the most.
- Interest is added to the balance every quarter, so from then on it earns interest too.
- At maturity you receive all your deposits plus the interest. The table shows the value at the end of each year.
Recurring deposit with quarterly compounding
Maturity value = sum over every instalment k of D × (1 + r ÷ 4)^(4 × (60 − k + 1) ÷ 12)
D = monthly deposit, r = yearly rate as a decimal, k = instalment number (1 to 60)
Interest earned = Maturity value − total depositsAssumptions and limits
- The notified rate applies for the whole 5 years. As per the scheme rules, the rate in force when you open the account is the one that stays.
- All instalments are assumed to be paid on time, at the same date every month. Late or missed instalments, and the fees on them, are not modelled.
- Interest compounds quarterly, and instalments are treated as paid at the start of each month.
- The calculation does not deduct tax. Post office RD interest is taxable, and the deposit does not qualify for a Section 80C (now section 123 of the Income-tax Act, 2025) deduction. Check current rules for your situation.
- Paying 6 or more instalments in advance earns a small rebate (₹10 per ₹100 for 6 to 11 months, ₹40 per ₹100 for 12 months); this is not modelled and would raise the return slightly.
- Closing early is not modelled. The account can be closed after 3 years, but then earns only the post office savings account rate for the whole period, not the RD rate.
- Loans against the balance (up to 50% after a year, at the RD rate plus 2%) and extending the account for up to 5 more years are not modelled.
Frequently asked questions
How is post office RD maturity amount calculated?
Each monthly instalment earns interest from the month it is paid until maturity, compounded every quarter at one fourth of the yearly rate. The calculator adds up all 60 instalments with their interest. For example, ₹5,000 a month at 6.7% becomes about ₹3,56,829 after 5 years.
What is the current post office RD interest rate?
The post office RD rate is 6.7% a year for Q3 FY2026-27, effective 1 October 2026. The Finance Ministry reviews small-savings rates every quarter, so the next change could come around 1 January 2027. For a recurring deposit, the rate on the day you open the account is the one you keep for the full five years. We last checked this rate on 21 October 2026; confirm with India Post or your bank before you invest.
What is the minimum monthly deposit in post office RD?
You can start with ₹100 a month, in multiples of ₹10. There is no maximum monthly amount. The account runs for 5 years, and the deposit must be paid every month to keep it in good standing. A larger monthly amount simply scales the maturity value in proportion.
What happens if I miss a post office RD instalment?
Each missed instalment attracts a default fee of ₹1 for every ₹100 of the instalment for each month it is late, paid with the late deposit. Up to 4 missed instalments can be made good by extending the maturity date by the same number of months. After more than 4 defaults the account is discontinued, and it can be revived only within 2 months of the fourth default, by paying the dues and fees. Check the current terms with your post office.
Is post office RD interest taxable?
Yes. Interest on a post office recurring deposit is added to your income and taxed at your slab rate, and tax may be deducted at source if your interest crosses a yearly threshold. The deposit does not qualify for a deduction under Section 80C (now section 123 of the Income-tax Act, 2025). Tax rules change with each Budget, so confirm the latest position.
Post office RD or bank RD: which gives more?
The post office rate is set by the government each quarter and stays fixed for your account, while bank RD rates differ by bank and tenure. This quarter's post office RD rate is 6.7%. Run the RD calculator with your bank's rate and compare the maturity values for the same monthly deposit.
Sources
- National Savings Institute (Ministry of Finance): Recurring Deposit Account scheme details
- India Post: current interest rates on post office savings schemes
Logic and rates last verified on .
Next step: related calculators
-
Government schemes Post Office TD Calculator
What will my post office fixed deposit be worth?
-
Savings & deposits RD Calculator
How much will my monthly recurring deposit grow to?
-
Government schemes PPF Calculator
How much will my PPF be worth at maturity?
-
Investing SIP Calculator
How much will my monthly SIP grow to?