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Finance
Estimate the maturity value of a Post Office Recurring Deposit — India Post's National Savings Recurring Deposit — which runs a fixed five-year term at a government-set rate, currently 6.7% p.a. compounded quarterly.
A Post Office RD takes one fixed installment a month for five years, and each installment earns interest from the month it is paid until maturity, credited on a quarterly rest. Maturity is therefore the sum, across all sixty installments, of deposit × (1 + rate ÷ 4) raised to the number of quarters that installment stays on deposit — the same arithmetic a bank RD uses. What differs is the scheme, not the formula: the term is fixed at five years rather than chosen, the rate is set by the Ministry of Finance and reviewed every quarter rather than quoted by a bank, and the rate that applies is the one prevailing when the account is opened, fixed for the full five years. The rate slider defaults to 6.7% p.a., the rate for April–June 2026, but is adjustable because that figure is revised quarterly. Figures shown are before any TDS.
The maturity arithmetic is identical — quarterly rests on monthly installments — but the product is not. A Post Office RD has a fixed five-year term, where banks let you pick anything from six months upward. Its rate is set centrally by the Ministry of Finance and reviewed each quarter, where banks set their own and compete on it. And the rate is locked at account opening for the whole five years, so a later revision does not affect an account already running.
6.7% per annum, compounded quarterly, for April–June 2026 — a rate that has been unchanged since January 2024. Because the Ministry of Finance reviews small-savings rates every quarter, confirm the prevailing rate at your post office before opening an account, and adjust the rate slider here to match.
₹100 a month, in multiples of ₹10, with no upper limit. The calculator's slider starts at ₹100 for that reason.
Premature closure is allowed after three years from opening, but it is expensive: interest is then paid at the Post Office Savings Account rate — currently 4% p.a. — rather than the RD rate, even if you close a day before maturity. A partial withdrawal of up to 50% of the balance is available after one year as an alternative. This calculator models an account held to maturity, so it does not reflect either outcome.
Yes. Interest on a Post Office RD is taxable as income from other sources and TDS applies above the prescribed threshold. The maturity figure shown here is before any tax deduction, and the scheme carries no Section 80C deduction on the deposits.