Post Office RD at a glance
| Feature | Detail |
|---|---|
| Interest rate (Oct–Dec 2026) | 6.7% p.a., compounded quarterly |
| Tenure | 5 years (60 monthly deposits), extendable by 5 years |
| Deposit | From ₹100 a month, in multiples of ₹10; no maximum |
| Rate lock | The rate on the day you open stays fixed for 5 years |
| Safety | Backed by the Government of India |
You can open it at any post office, or through India Post's internet and mobile banking if you have a post office savings account.
What your RD will be worth
| Monthly deposit | Total deposited | Maturity after 5 years |
|---|---|---|
| ₹2,000 | ₹1,20,000 | ₹1,42,732 |
| ₹5,000 | ₹3,00,000 | ₹3,56,829 |
| ₹10,000 | ₹6,00,000 | ₹7,13,658 |
The official India Post table shows ₹713.59 for a ₹10 monthly deposit; tiny differences come from rounding.
Post Office RD vs SBI RD
For a 5-year horizon, the post office currently pays more: 6.7% against SBI's 6.05% for 5–10 year RDs and 6.30% for 3–5 years. SBI RDs are more flexible — tenures from 12 to 120 months and easy online booking — and senior citizens get an extra 0.50% there. Compare on the SBI RD calculator.
Rules worth knowing
- Due date: if the account was opened between the 1st and 15th, deposit by the 15th of each month; if opened later, by the end of the month.
- Missed deposits: a default fee of ₹1 per ₹100 per month is charged. After 4 consecutive defaults the account becomes discontinued; it can be revived within the next 2 months.
- Advance deposits: paying 6 months or more in advance earns a small rebate.
- Loan: after 12 instalments, you can borrow up to 50% of the balance, repayable with interest at 2% above the RD rate.
- Premature closure: allowed after 3 years, but interest is paid at the post office savings account rate, which is much lower.
Tax
RD interest is taxable at your slab rate, and there is no tax deduction for the deposits. Report the interest in your return each year (or at maturity, depending on your method of accounting). For a tax-saving post office product, see the 5-year Post Office time deposit or PPF.