Post Office RD Scheme pays interest at the rate of 6.7 per cent per annum (compounded quarterly). The scheme allows monthly investments of Rs 100 and above (in multiples of Rs 10) with a maturity period of five years with a premature withdrawal option after the first three years.
Post Office RD Interest Rate: Money invested every month in the Post Office National Savings Recurring Deposit Account grows at a rate set by the government. Interest rate compounded quarterly. According to India Post website indiapost.gov.in, for the quarter ending June 30, 2024, the interest rate applicable on post office recurring deposit account is 6.7 per cent per annum.
Three important things about Post Office RD Scheme
- Investment Limit
Account can be opened by investing a minimum of Rs 100 per month and any amount in multiples of Rs 10 without any upper limit.
2. How to Open Account
Post Office RD account can be opened on payment of initial amount in cash or cheque. Subsequent deposits are required to be made by the 15th day of each month if the account is opened in the first fortnight or between the 16th day and the last working day of the month if the account is opened in the second fortnight.
3. Maturity Period/Premature Withdrawal
The amount built up in the RD account can be prematurely withdrawn after completion of three years from the date of opening by submitting a prescribed application form in the concerned post office branch. However, if the depositor exercises the premature withdrawal option, the interest rate applicable to Post Office Savings Account is applicable on the corpus. On maturity the RD can be continued for next five years.
How money invested in RD scheme grows on maturity
| Period | Corpus at the end of each year till maturity | ||
| Rs 5,000/month investment | Rs 12,000/month investment | Rs 20,000/month investment | |
| End of third year (premature) | Rs 67,492 | Rs 1,61,980 | Rs 2,69,967 |
| End of fourth year (premature) | Rs 70,192 | Rs 1,68,460 | Rs 2,80,766 |
| End of fifth year (maturity) | Rs 3,56,829 | Rs 8,56,390 | Rs 14,27,317 |
List of top five interest paying small savings schemes till April-June 2024 quarter
| Small savings scheme | Interest rate (%) |
| Sukanya Samriddhi Account Scheme | 8.2 |
| Senior Citizen Savings Scheme | 8.2 (quarterly interest Rs 205 for Rs 10,000) |
| National Savings Certificate (VIII Issue) | 7.7 (maturity value Rs 14,490 for Rs 10,000) |
| Kisan Vikas Patra | 7.5 (matures in 115 months) |
| Mahila Samman Savings Certificate | 7.5 (maturity value Rs 11,602 for Rs 10,000) |
| Monthly Income Account | 7.4 (monthly interest Rs 62 for Rs 10,000) |
| 5 Year Time Deposit | 7.5 (annual interest Rs 771 for Rs 10,000) |
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