In today’s uncertain world, we all want a financial backup we can trust. A plan that’s safe, consistent, and helps build a solid fund for the future—without taking on stock market risk or dealing with the complexities of fixed deposits. If that sounds like you, the Post Office Recurring Deposit (RD) Scheme might be just what you need.
Let’s break it down simply. If you start saving just ₹10,000 every month in this scheme, you can build a fund of ₹7.13 lakh in 5 years. Sounds promising, right? Let’s dive into how it works.
Post Office Recurring Deposit Scheme Summary
Feature | Details |
---|---|
Scheme Type | Post Office Recurring Deposit |
Monthly Deposit | ₹10,000 |
Tenure | 5 years |
Total Maturity Amount | ₹7,13,659 |
Interest Rate (2025 Q3) | 6.7% (compounded quarterly) |
Loan Facility | After 12 months (up to 50%) |
Best For | Salaried, small business, parents |
What is the Post Office RD Scheme?
The Recurring Deposit or RD is a monthly investment plan backed by the government. Every month, you deposit a fixed amount. Over time, this grows with interest and becomes a lump sum on maturity.
But what makes the Post Office RD special? One word: security. Unlike private savings tools, this scheme is fully government-backed, which means your money is in safe hands—no market risks, no hidden shocks.
Save ₹10,000 Monthly – Get ₹7.13 Lakh in Return!
Here’s a simple example:
- Monthly Deposit: ₹10,000
- Tenure: 5 years (60 months)
- Total Deposit: ₹6,00,000
- Interest Earned: ₹1,13,659
- Maturity Amount: ₹7,13,659
This calculation is based on the current interest rate of 6.7% per annum (compounded quarterly).
Latest Update: Interest Rate for July–September 2025
The Government of India updates the interest rate on post office schemes every quarter. For the July to September 2025 quarter, the RD scheme offers 6.7% annual interest. This rate is competitive compared to many private options and is reviewed every 3 months.
Need Money in an Emergency? Loan Option Available
Here’s another advantage: If you’ve completed at least 12 monthly deposits, you can apply for a loan up to 50% of your total deposits. This can be incredibly helpful during emergencies like medical needs or urgent repairs.
However, remember—loan interest is 2% more than the RD interest rate.
Who Should Consider This Scheme?
This RD plan is ideal for:
- Salaried individuals looking for disciplined savings
- Small business owners building a future fund
- Daily wage earners who want to grow savings gradually
- Parents saving for children’s education or marriage
- Anyone planning for home construction or retirement
Even though the default duration is 5 years, you can choose to extend it for another 5 years after maturity, making it a long-term, low-risk plan.
Final Note
This article is meant to give you helpful financial insight and not professional investment advice. Always speak to a qualified financial advisor before making any savings or investment decisions.