Post Office Recurring Deposit Calculator
Post Office Recurring Deposit (RD) is a popular recurring savings scheme offered by the Indian Post offices. It is a type of investment where you can invest a fixed amount of money every month for a fixed period and earn a fixed interest rate. The interest rate on Post Office RD ranges from 5.8% to 6.8%, depending on the tenure of the deposit. However, calculating your savings and returns can be challenging. This is where our Post Office RD Calculator comes in.
What Is The Post Office Recurring Deposit Calculator?
Let’s say you want to invest a small amount every month and want a fixed return with minimum risk, the post office RD is a way to go. Post office recurring deposits let you invest a fixed amount every month; it's like a fixed deposit, but you are depositing the amount every month.
The Post office RD calculator helps you calculate your maturity value, i.e, value of your investment at the end of tenure, based on the amount invested per month, the tenure, and the interest rate.
How to Use the Post Office RD Calculator
Post Office RD Calculator is simple and intuitive. You can follow these steps to use the calculator :
Step 1: Enter the monthly investment amount, for example, ₹500 per month.
Step 2: Enter the Interest rate Post Office offers on RD accounts for a specific tenure.
Step 3: Enter the tenure of your investment, for example, 3 years, 5 years, or 7 years
And that’s it, the Post Office Recurring Deposit (RD) calculator will provide you with the following details:
- Total amount invested during the tenure
- Estimated returns
- Final maturity value
How to Calculate Post Office RD Interest Rate?
The formula used to calculate returns from the post office RD account is as follows:

M = R [ ((1 + i)ⁿ − 1) / (1 − (1 + i)⁻¹ᐟ³) ]
where,
M = Total value of maturity
R = Amount of monthly deposits
n = Time (in quarters)
i = quarterly interest rate (Yearly interest rate / 4)
Let us understand this with an example. Suppose you want to deposit Rs 10,000 every month for 5 years in the post office RD that offers a 5.8% interest rate.
Here,
R = ₹5,000
n = 20 (5*4)
i = 1.675 (5.8/4)
Putting these values in the formula, we get:

M = 5000 × [((1 + 0.01675)²⁰ - 1) / (1 - (1 + 0.01675)⁻¹/³)]
When you solve for M (maturity value), you will get M = ₹3,48,484
Hence, a maturity amount of ₹3,48,484 on your total deposit of ₹3,00,000, means an interest of ₹48,484 after 5 years.
Benefits of Using the Post Office RD Calculator
There are several benefits of using the Post Office RD Calculator:
- Accuracy: The RD calculator accurately calculates your savings and total interest earned.
- Convenience: You can use the calculator from the comfort of your home or office, without visiting a Post Office.
- Time-saving: The calculator saves you time and effort by providing instant calculations without complex calculations.
- Comparison: The calculator can help in scenario analysis, based on different investment amounts, tenures, and interest rates, helping you make informed investment decisions.
Factors Influencing Post Office RD Earnings
Earnings from the post office RD depend on various factors, including:
- Interest rate offered by the post office: The higher the interest rate, the higher the earnings. The interest rate on the Post Office RD is determined by the government and can change quarterly.
- Tenure: The Post Office offers different interest rates for different tenures. Also, a longer tenure results in greater interest accumulation.
- Premature withdrawal: If the account is closed before one year, no interest is paid on the deposits. If the account is closed after one year, the interest is paid at a rate of 1% less than the applicable rate.
Post Office Recurring Deposit Account Features
The features of the Post Office RD account:
- Eligibility: Any Indian citizen can open a Post Office RD account. This includes minors under the supervision of a guardian.
- Minimum and Maximum Investment Amount: The minimum investment amount for a Post Office RD account is ₹10 per month, and there is no maximum investment limit.
- Tenure: The tenure of the Post Office RD account varies from 5 years to 10 years, and the deposit can be made every month.
- Interest Rate: The interest rate on a Post Office RD account ranges from 5.8% to 6.8% per annum, depending on the tenure of the deposit.
- Penalty for Delayed Payment: If you miss a monthly payment, you can pay the same with a penalty of ₹1 per ₹100 per month for each default.
- Nomination Facility: You can nominate one or more persons for your Post Office RD account to receive the maturity amount in case of your death.
How to Open a Post Office RD Account
Opening a Post Office RD account in India is easy. You can follow the process below to open a Post Office RD account:
Step 1: Visit the nearest Post Office
Visit the nearest Post Office to open a Post Office RD account.
Step 2: Fill out the application form
Fill the application form with basic personal information and the monthly deposit amount. Submit it along with your KYC documents.
Step 3: Deposit the amount
Make your first recurring deposit of the selected amount.
Step 4: Get the passbook
Get the passbook for your Post Office RD account, which has details of your monthly deposits, interest earned, and maturity value.
Documents Required to Open a Post Office RD Account
Documents required include
- Account opening form
- Aadhaar card
- PAN card
- Two passport-sized photographs
- You’ll also need to provide nominee details.
How Does Taxation Apply to RD?
Recurring Deposits attract no tax exemptions. The interest earned from the Recurring deposit will be subject to income tax as per the income tax slab of the RD holder.
How to Close a Post Office RD Account Online?
- You can visit ebanking.indiapost.gov.in and log in using your user ID and password.
- Once you click login, enter the OTP received on the registered mobile number.
- Now, click on general service and then service request.
- Under service request, click on closure of RD, and then click on Go.
- Now choose your deposit account number and then credit account, and click on Submit Online.
- After submitting, you will be directed to a new page, fill in the transaction password.
- Finally, click on Submit.
- At last, you will receive a reference number, and the amount will be credited to your savings account 24 hours after submitting the request.