Post Office RD Calculator

Post Office RD Calculator: The Post Office Recurring Deposit (RD) Calculator helps you estimate the maturity amount of your RD investment based on:
Monthly Deposit Amount
Interest Rate
Investment Tenure

Post Office RDs are a safe, government-backed savings option with fixed returns, making them ideal for risk-averse investors.

How Post Office RD Returns are Calculated

RD Maturity Formula:

$M a t u r i t y A m o u n t = P \times 1 - ( 1 + r ) ^{-1/3} ( 1 + r ) ^{n} - 1$

P = Monthly Deposit
r = Quarterly Interest Rate (Annual Rate ÷ 4)
n = Total Quarters (Tenure in Years × 4)

Current Post Office RD Interest Rate (2024):

6.7% per annum (compounded quarterly)

Example Calculation:

Monthly Deposit (P): ₹5,000
Tenure: 5 years (60 months / 20 quarters)
Annual Interest Rate: 6.7%

Step 1: Convert annual rate to quarterly rate

$r = 46.7% = 0.01675 (1.675% p er q u a r t er)$

Step 2: Apply RD formula

$M a t u r i t y = 5, 000 \times 1 - ( 1 + 0.01675 ) ^{-1/3} ( 1 + 0.01675 ) ^{20} - 1 \approx * * ₹3, 59, 712 * *$

Total Invested Amount:

$₹5, 000 \times 60 = * * ₹3, 00, 000 * *$

Interest Earned:

$₹3, 59, 712 - ₹3, 00, 000 = * * ₹59, 712 * *$

Benefits of Using a Post Office RD Calculator

Accurate Maturity Estimates – Plan your savings goal
Compare with Other Investments – See how RDs stack up against FDs, mutual funds
Tax Planning – Post Office RDs offer 5-year tax-saving benefits (Sec 80C)
Risk-Free Returns – Government-backed, fixed interest
Flexible Tenures – 5-year default, but can extend in 5-year blocks

Post Office RD vs Bank RD vs FD

Feature	Post Office RD	Bank RD	Post Office FD
Interest Rate (2024)	6.7%	5.5-7%	6.8% (5-year)
Tax Benefits	80C (5-year tenure)	No	80C (5-year tenure)
Safety	Govt-backed	Depends on bank	Govt-backed
Premature Withdrawal	Allowed after 1 year (with penalty)	Allowed (penalty applies)	Allowed after 6 months

Factors Affecting RD Returns

Factor	Impact on Maturity Value
Monthly Deposit	Higher deposits → Larger corpus
Interest Rate	Higher rate → More earnings
Tenure	Longer duration → Higher compounding
Compounding Frequency	Quarterly compounding boosts returns

FAQs on Post Office RD Calculator

1. What is the minimum deposit for Post Office RD?

₹100/month (no upper limit).

2. Can I extend my RD after 5 years?

Yes, in blocks of 5 years (same interest rate applies).

3. Is Post Office RD interest taxable?

Yes, but 5-year RDs qualify for ₹1.5 Lakh deduction under Sec 80C.

4. What is the penalty for missing an RD installment?

₹1 per ₹100 for each missed deposit (max ₹5 per month).

5. Can I take a loan against Post Office RD?

No, loans are not allowed against Post Office RDs.

Try Our Free Post Office RD Calculator

Plan your savings efficiently with our Post Office RD Calculator:
Check maturity for different deposit amounts
Compare with other small savings schemes
Estimate tax benefits

Calculate Now & Start Saving!

Key Takeaways

Post Office RD offers 6.7% interest (2024)
5-year RDs qualify for tax deduction under Sec 80C
Low-risk, government-backed investment
Use an RD calculator before investing