The Post Office has a scheme that is really helpful to those without money, by investing only Rs 500., daily. After time, that would accumulate to a lot of money. The name of that scheme is the Post Office Recurring Deposit (RD). The RD’s interest rate as of January, 2026 is 6.70%p.a., with the interest compounded quarterly or on a regular basis (every three months). This means your accumulated savings will continue to grow on a regular basis. The tenure is currently 5 years, with a possibility of extending the formula for an additional 5 years from the original tenure. The government guarantees that putting your money into the RD would have no risk involved.
Assuming if you deposited Rs 500 every day, you would have deposited approximately Rs 15,000 every month, which means if you did so for a total of 5 years you would have deposited Rs 9 lakh (15,000 x 60 months = Rs 9 lakh) into the account. Assuming it is compounded at 6.7% interest when your account matures you should have approximately Rs 10,70 lakh in the account.
1.5 lakhs on interest only
Extend it for another 5 years, making it a total of 10 years. Interest will continue to accrue on the term deposit for the first five years, and if you continue to deposit Rs. 15,000 every month, the total deposit amount will reach Rs. 18 lakhs. After 10 years, the term deposit amount will be around Rs. 25.60 lakhs. The interest on this amount will be approximately Rs. 7,60,000.
How to Open an RD Account?
Opening an RD scheme in post office is a quick and easy process. Here’s how:
Step 1. Visit Your Nearest Post Office:
Ask for an RD account opening form.
Step 2. Submit Required Documents:
You’ll need identity proof, address proof, and passport-size photographs.
Step 3. Make Your First Deposit:
Start with at least ₹100 and set up a fixed monthly deposit amount.
Step 4. Receive Your Passbook:
Once your account is activated, you’ll get a passbook to track your deposits and interest earnings.
With digital banking expanding, some post offices now offer online RD account management, allowing you to track and manage your savings easily.