RD Calculator: Post Office and Bank Recurring Deposit
Maturity value of a monthly recurring deposit with quarterly compounding. Preset to the post office 5-year RD at 6.7% (Oct-Dec 2026); enter any bank's rate and term.
The post office 5-year RD interest rate for Oct-Dec 2026 is 6.7%, unchanged since October 2023 (it was 6.5% before that). ₹1,000 a month for 5 years (₹60,000 deposited) grows to about ₹71,366; ₹5,000 a month grows to about ₹3,56,829, with interest compounded every quarter.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- Recurring deposit (RD)
- A bank deposit where you put in the same amount every month for a fixed time and earn a fixed interest rate.
- Small savings rate
- The interest rate the Ministry of Finance sets every quarter for post office schemes such as PPF, SSY, NSC and SCSS. Most schemes lock it in when you open; PPF and SSY use each quarter's rate.
- Compounded quarterly
- Interest is added every three months and then itself earns interest, so the real yearly gain is a little more than the stated rate.
- Maturity
- The day a deposit or scheme ends and pays you out. The maturity value is what you get that day.
- Premature closure
- Closing a deposit before its term ends. Usually allowed after a minimum period, with a penalty or a lower interest rate.
- Tax slab
- The income-tax rate for your income band. Dividends are added to your income and taxed at your slab rate.
A recurring deposit (RD) takes a fixed amount every month and pays it back with interest at the end of the term. Banks offer RDs from 6 months to 10 years; the post office RD runs for 5 years at a rate the government sets each quarter. Both compound interest every quarter.
Post office RD: what monthly deposits become in 5 years
| Monthly deposit | Total deposited | Maturity value at 6.7% | Interest earned |
|---|---|---|---|
| ₹500 | ₹30,000 | ₹35,683 | ₹5,683 |
| ₹1,000 | ₹60,000 | ₹71,366 | ₹11,366 |
| ₹2,000 | ₹1,20,000 | ₹1,42,732 | ₹22,732 |
| ₹5,000 | ₹3,00,000 | ₹3,56,829 | ₹56,829 |
| ₹10,000 | ₹6,00,000 | ₹7,13,658 | ₹1,13,658 |
Each instalment earns interest for the months it is in the account, compounded quarterly: P × (1 + r/4)months left ÷ 3, summed over all instalments. India Post's own maturity tables can differ from this by a few rupees because of rounding.
Post office RD interest rate history
| Period | Interest rate |
|---|---|
| 1 Oct 2023 to now | 6.7% |
| 1 Jul 2023 to 30 Sep 2023 | 6.5% |
| 1 Apr 2023 to 30 Jun 2023 | 6.2% |
| 1 Apr 2020 to 31 Mar 2023 | 5.8% |
| 1 Jul 2019 to 31 Mar 2020 | 7.2% |
| 1 Oct 2018 to 30 Jun 2019 | 7.3% |
| 1 Jan 2018 to 30 Sep 2018 | 6.9% |
| 1 Jul 2017 to 31 Dec 2017 | 7.1% |
| 1 Apr 2017 to 30 Jun 2017 | 7.2% |
| 1 Oct 2016 to 31 Mar 2017 | 7.3% |
| 1 Apr 2016 to 30 Sep 2016 | 7.4% |
| 1 Apr 2014 to 31 Mar 2016 | 8.4% |
| 1 Apr 2013 to 31 Mar 2014 | 8.3% |
| 1 Apr 2012 to 31 Mar 2013 | 8.4% |
The rate in force when you open the account applies for the full 5 years. Rates from the National Savings Institute (Ministry of Finance) rate history and India Post's current rates; the Oct-Dec 2026 rates were confirmed by the Ministry of Finance memorandum of 30 September 2026.
Post office RD rules
Minimum ₹100 a month, in multiples of ₹10, with no maximum. Single or joint (up to three adults). After one year, one withdrawal of up to 50% of the balance is allowed. The account can be closed after 3 years, but then earns only the savings account rate (4%). On maturity it can be continued for another 5 years, with or without deposits.
Tax
RD interest, post office or bank, is taxed at your slab rate. Bank RDs deduct TDS when your interest from that bank crosses the threshold; the post office RD has no section 80C/123 benefit.
Key takeaways
- Post office RD pays 6.7% for Oct-Dec 2026, fixed for the 5-year term.
- Interest compounds quarterly on each instalment.
- Minimum ₹100 a month; 50% withdrawal after a year; early closure after 3 years at 4%.
- Interest is taxable at your slab rate.
Frequently asked questions
What is the post office RD interest rate?
6.7% a year for Oct-Dec 2026, compounded quarterly, unchanged since October 2023.
What is ₹1,000 a month for 5 years in a post office RD?
About ₹71,366 at maturity: ₹60,000 deposited plus about ₹11,366 interest at 6.7%.
How is RD interest calculated?
Quarterly compounding: each monthly instalment P grows to P × (1 + r/4)^(n/3), where n is the number of months it stays in. The maturity value is the sum over all instalments.
Is a post office RD better than a bank RD?
Compare the rates for the same term: enter your bank's rate in the calculator. Post office deposits are backed by the government; bank deposits are insured up to ₹5 lakh per bank.
Can I close a post office RD early?
After 3 years, but the interest is then paid at the post office savings account rate of 4%.