If a person wants to set aside a small amount from their salary each month to secure their future, the Post Office Recurring Deposit (RD) scheme is a very good option. This is a safe investment, which is not prone to market fluctuations. It will only demand a small deposit each month, and in 5 years, the RD will mature and the total interest earned will be added to the capital intuitively. So, if you ask us what amount of money you will receive at the end of 5 years if you had only deposited Rs. 2000 or Rs. 3000 or Rs. 5000 towards the RD every month, we will explain in a simple word!
Post Office Recurring Deposit (RD) is a savings scheme where you put a fixed amount of money every month, like Rs 500, Rs 1000, or Rs 5000. You keep it for 5 years. The government sets the interest rate, which is compound interest (interest on interest). Most importantly, the government fully guarantees this scheme. There is no market risk and no chance of loss.
Why is RD Good for Small Investments?
Many people think you need a lot of money to invest. But the Post Office RD changes that. You can start with just Rs 100 per month. Over time, small savings grow into a large amount – that’s the beauty of RD. It is perfect for people who want to save a little each month but keep their money safe.
Post Office RD Interest Rate (April-June 2025)
The interest rate on the Post Office RD changes every 3 months. From April 1, 2025, to June 30, 2025, the rate is 6.7% per year (compounded every quarter). This means interest is added every 3 months, and you earn interest on the interest too. This helps your money grow fast.
How Much Can You Earn with RD?
Let’s see how much you can earn by depositing Rs 2000, Rs 3000, or Rs 5000 every month for 5 years (60 months) at 6.7% interest:
Rs 2000/month: Total deposit = Rs 1,20,000. Estimated interest = Rs 21,983. Total at maturity = Rs 1,41,983.
Rs 3000/month: Total deposit = Rs 1,80,000. Estimated interest = Rs 32,975. Total at maturity = Rs 2,12,975.
Rs 5000/month: Total deposit = Rs 3,00,000. Estimated interest = Rs 54,958. Total at maturity = Rs 3,54,958.
Why is RD Safe?
100% Safety: The main reason why RD is popular is That scheme is backed by the Government of India, so your money is safe.
Fixed Returns: The interest rate is fixed, so you know how much you will get at maturity.
Small Investment, Big Returns: You can save small amounts each month and build a large sum.
Loan Facility: You can borrow against your RD if needed.
Nomination: You can nominate someone to receive the funds if needed.
How to Open a Post Office RD Account
- Go to any post office.
- Fill out the form.
- You will need your Aadhaar card, PAN card, and two passport-sized photos.
- Pay the first month’s deposit in cash or online.
- Your RD account will be activated.
- You can open a single account, a joint account, or an account in the name of children.
