Post Office RD Interest Rates: Updated Guide & Details

Key Takeaways
 

• The Post Office RD interest rate 2025 is currently 6.7% per annum, and this rate is compounded every quarter to increase your final earnings. 
   
• You can begin your savings with a Post Office RD ₹1000 per month 5 years plan which is very affordable for almost everyone. 
   
• This Post Office RD scheme is fully backed by the Government of India, which means your money is completely safe and your returns are guaranteed.

Your savings are your future, so why not start saving a fixed amount today for a better tomorrow? You can easily grow your wealth by making small monthly deposits into a Post Office Recurring Deposit (RD) account. Let’s learn why this scheme is a favorite for millions of people across India

A Recurring Deposit is a financial tool where you deposit a set amount of money every month for a fixed tenure to earn interest. This scheme helps you build large funds by saving small sums regularly instead of a big lump sum.

I deposit ₹5,000 in a Post Office Recurring Deposit (RD) account every month for 5 years. I earned a fixed interest of 6.7% on my total deposits. I will receive a maturity amount that is much higher than what I actually saved by the end of the tenure. 

Post Office RD Interest Rates Based on Tenure

You should know that the Post Office RD comes with a fixed maturity period of 5 years, which consists of 60 monthly instalments. The Post Office RD interest rates for 5 years are decided by the government every quarter, but once you open your account, your rate stays the same. 
 

You can use a Post Office RD interest rates calculator to find out your exact maturity amount before you even start. If you want to continue after 5 years, you can extend the account for another 5 years at the same original rate.

Post Office RD Key Highlights (Features and Benefits)

You will find many benefits when you choose this government-backed scheme for your regular savings. One of the best features is that you can take a loan of up to 50% against your balance after completing just one year of deposits.

• Safety: Your principal amount is 100% secure as it is backed by the central government.
• Low Entry: You can start with a very small amount and increase it in multiples of ₹10.
• Advance Rebate: You get a small discount if you pay your installments for 6 or 12 months in advance.
• Nomination: You can add a nominee at the time of opening or later.

Bonus Tip: The Government of India has kept interest rates on all major small savings schemes, including Post Office RD, unchanged for the January-March 2026 quarter. This decision gives investors stable and predictable returns despite market fluctuations.

These highlights make it clear why you should consider Post Office RD for your financial needs.

Types of Post Office Recurring Deposit Accounts

You have the flexibility to choose how you want to manage your RD account based on your family's needs. 

The post office allows you to open accounts individually or together with your family members for better planning.

Post Office RD Tenure & Minimum Deposit

You can start your savings with as little as ₹100, making it one of the most accessible plans in India. Most people prefer the Post Office RD ₹1000 per month 5 years structure because it fits easily into a monthly household budget.
 

The Post Office RD interest rates 2025 for 5 years apply to every rupee you save in this window. 

Conclusion

The Post Office RD is a safe and high-yielding way to save your money for 5 years. You get a 6.7% interest rate and the comfort of government security for your hard-earned funds. You should visit your nearest post office to open your account today!

FAQs Related to Post Office RD Interest Rates

1. How can I open a Post Office RD account easily? 

You must visit your nearest branch with your KYC documents, like Aadhaar and PAN cards to open your Post Office RD account. If you already have a post office savings account with active internet banking, you can also open it online through the official e-banking portal or the IPPB mobile application.

2. Is the interest from a Post Office RD account eligible for tax deductions? 

The investment in a Post Office RD does not qualify for a deduction under Section 80C of the Income Tax Act, unlike a 5-year fixed deposit. You must consider the interest earned as “Income from Other Sources,” and it is fully taxable according to your applicable income tax slab rates.

3. What is the best way for you to track my Post Office RD online? 

You can track your Post Office RD balance and transaction history by logging into the India Post e-banking portal using your Customer ID and Account ID. These details are printed on the first page of your physical passbook, and you can also use the IPPB mobile app for regular updates on your installments.

4. Should I withdraw from my Post Office RD after 3 years or wait for 5 years? 

It is smarter to stay invested for the full 5 years because the Post Office RD interest rate 2025 of 6.7% is only fully realized at maturity. If you withdraw after 3 years, you will only receive the lower savings account interest rate, which significantly reduces your total collection and disrupts your long-term money growth.

5. How much will I get after 5 years with a ₹1000 monthly deposit? 

You can see that a monthly deposit of ₹1000 results in a total investment of ₹60,000 using a Post Office RD interest rates calculator. At 6.7% interest, you will receive approximately ₹71,365 at the time of maturity.