Post Office RD Calculator

If you're looking for a reliable and safe savings plan, the Post Office Recurring Deposit (RD) scheme is one of the best options backed by the Government of India. With a fixed monthly deposit, attractive interest rates, and government-guaranteed returns, the Post Office RD is ideal for individuals seeking a disciplined investment plan. To simplify your planning, you can use our Post Office RD Calculator to get a clear picture of your expected returns.

In this comprehensive guide, we will explain everything you need to know about the Post Office RD scheme, including what it is, why you should use it, how the calculator works, and how it helps in financial planning.

What is Post Office Recurring Deposit (RD)?

The Post Office RD Account is a small savings scheme offered by India Post, where you deposit a fixed amount every month for a period of 5 years (60 months). At the end of the term, you receive the total invested amount along with the interest earned. It is one of the most secure investment options as it is backed by the Government of India.

• Tenure: 5 years (can be extended)
• Minimum Monthly Deposit: ₹100 (or in multiples of ₹10)
• Interest Rate: 6.7% p.a. (as of Q2 FY 2025)
• Compounding Frequency: Quarterly
• Premature Withdrawal: Allowed after 3 years with conditions
• Account Type: Single or Joint

Why Choose the Post Office RD Scheme?

• Guaranteed Returns: Being a government-backed scheme, it provides risk-free returns.
• Disciplined Saving: Monthly deposits help in building a habit of regular saving.
• Attractive Interest Rates: Offers higher interest rates compared to regular bank savings accounts.
• Flexible Deposits: Minimum deposit as low as ₹100, making it accessible to all.
• Compounding Benefits: Quarterly compounding increases the final maturity amount.
• Loan Facility: You can avail up to 50% loan against your RD balance after 1 year.

What is a Post Office RD Calculator?

The Post Office RD Calculator is an online tool that helps you estimate the maturity value of your RD account based on the monthly deposit, interest rate, and investment period.

You don't need to manually calculate interest every quarter or worry about compounding. The calculator does all the hard work and gives you an instant result.

How to Use the Post Office RD Calculator

1. Enter Monthly Deposit: Input the amount you plan to deposit every month (minimum ₹100).
2. Select Tenure: The default tenure is 5 years (60 months), which is fixed for Post Office RD.
3. Enter Interest Rate: The current RD interest rate is 6.7% p.a., compounded quarterly.
4. Click Calculate: The calculator will show:
   • Total Investment
   • Interest Earned
   • Maturity Amount

Example Calculation

Suppose you invest ₹1000 every month in a Post Office RD for 5 years.

• Monthly Deposit: ₹1000
• Interest Rate: 6.7% per annum
• Investment Period: 5 years (60 months)

Results:

• Total Deposits: ₹60,000
• Interest Earned: ₹11,451 (approx.)
• Maturity Value: ₹71,451

Post Office RD Interest Rate Trends

Period	Interest Rate
Q1 FY 2024-25	6.7% p.a.
Q4 FY 2023-24	6.7% p.a.
Q3 FY 2023-24	6.7% p.a.

Always verify the latest interest rates from the official India Post website before investing.

Tax Implications of Post Office RD

• The interest earned on RD is taxable under the Income Tax Act.
• There is no TDS on RD interest by the post office.
• You must declare the income and pay taxes according to your tax slab.
• There are no tax deductions under Section 80C for RD deposits.

Benefits of Using Our RD Calculator

• Instant Results: No need to wait or use complex formulas.
• Accurate Calculations: Based on the latest compounding methods.
• User Friendly: Just enter your monthly deposit and rate.
• Saves Time: No need for manual math.
• Helps Planning: Know exactly how much you'll get and decide accordingly.

Formula Used in Post Office RD Calculator

The RD maturity calculation is based on the compound interest formula:

M = P × [(1 + r/n)^(nt) - 1] / (1 - (1 + r/n)^(-1/3))

Where:

• M = Maturity Amount
• P = Monthly deposit
• r = Annual interest rate (in decimal)
• n = Compounding frequency (4 for quarterly)
• t = Time in years

To make the most of this investment, use our Post Office RD Calculator. It helps you plan better, calculate your returns accurately, and stay informed about your savings goals.

Try the RD Calculator Now →