Post Office Recurring Deposit (RD) 2026: 6.7% Interest & Calculator
Want to build wealth through disciplined monthly savings? The Post Office Recurring Deposit (RD) is perfect for salaried individuals and small business owners. As of 2026, it offers a competitive 6.7% annual interest rate with complete government backing.
Current RD Interest Rate (2026)
💰 Interest Rate: 6.7% per annum
For the quarter January to March 2026, the Post Office RD interest rate is 6.7%, compounded quarterly. This rate applies to all 5-year RD accounts.
Key Features of Post Office RD
- Tenure: Fixed 5 years (60 months), extendable by another 5 years
- Minimum Deposit: ₹100 per month (in multiples of ₹10)
- Maximum Deposit: No upper limit
- Compounding: Quarterly (better than annual)
- Loan Facility: Available after 1 year (up to 50% of balance)
- Premature Withdrawal: Allowed after 3 years (with penalty)
Post Office RD Maturity Calculator 2026
How much will your monthly savings grow in 5 years at 6.7% p.a.?
| Monthly Deposit | Total Investment (60 months) | Maturity Value | Interest Earned |
|---|---|---|---|
| ₹500 | ₹30,000 | ₹35,600 | ₹5,600 |
| ₹1,000 | ₹60,000 | ₹71,200 | ₹11,200 |
| ₹2,000 | ₹1,20,000 | ₹1,42,400 | ₹22,400 |
| ₹5,000 | ₹3,00,000 | ₹3,56,000 | ₹56,000 |
| ₹10,000 | ₹6,00,000 | ₹7,12,000 | ₹1,12,000 |
How to Open a Post Office RD Account?
- Visit your nearest Post Office branch.
- Fill the RD Account Opening Form.
- Submit KYC documents (Aadhaar, PAN, Photo).
- Decide your monthly deposit amount (minimum ₹100).
- Make the first deposit (Cash/Cheque).
- Receive your RD Passbook.
Pro Tip: You can open multiple RD accounts with different monthly amounts for diversification.
Tax Rules for Post Office RD
- Interest: Fully taxable as per your income tax slab.
- TDS: Deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
- 80C Benefit: Not available (unlike NSC or PPF).
Penalty for Missed Deposits
If you miss a monthly deposit, a penalty is charged:
- Default Fee: ₹1 per ₹100 of monthly deposit (e.g., ₹10 for ₹1,000/month).
- Account Discontinuation: If 4 consecutive deposits are missed, the account is discontinued.
- Revival: You can revive the account by paying all dues + penalty.
RD vs Bank RD: Which is Better?
| Feature | Post Office RD | Bank RD |
|---|---|---|
| Interest Rate | 6.7% (Fixed for quarter) | 6.0-7.0% (Varies by bank) |
| Safety | 100% Government-backed | DICGC insured (up to ₹5 Lakh) |
| Minimum Deposit | ₹100/month | ₹500-1,000/month |
| Tenure | 5 Years (Fixed) | 1-10 Years (Flexible) |
Who Should Invest in Post Office RD?
- Salaried Employees: Ideal for monthly savings from salary.
- Small Business Owners: Build an emergency fund gradually.
- Parents: Save for child's future education/marriage.
- Risk-averse Investors: Government-backed safety with decent returns.
Conclusion
The Post Office Recurring Deposit with 6.7% interest is an excellent forced-savings tool for 2026. While it doesn't offer tax benefits like PPF or NSC, its low entry barrier (₹100/month) and government backing make it accessible to everyone.
Start your RD journey today at your nearest Post Office!