If you are wondering “How much money will you get if you deposit ₹10,000 every month in the Post Office RD scheme?”, you’re in the right place! This article will provide a detailed breakdown of returns, practical tips, and essential information for both beginners and professionals. Whether you’re planning your future savings or advising clients, this guide will clarify how the Post Office Recurring Deposit (RD) Scheme works and what to expect on maturity.
The Post Office RD is one of the most reliable savings schemes in India, offering attractive interest rates, safety, and easy accessibility. As of March 2025, the current interest rate stands at 6.7% per annum (compounded quarterly). But how much will you actually receive after investing ₹10,000 every month? Let’s dive in!
Post Office RD Scheme
| Feature | Details |
|---|---|
| Monthly Deposit | ₹10,000 |
| Scheme Name | Post Office Recurring Deposit (RD) |
| Interest Rate (as of March 2025) | 6.7% per annum (compounded quarterly) |
| Tenure | 5 years (60 months) |
| Total Deposit | ₹600,000 |
| Estimated Interest Earned | ₹1,13,658 approx. |
| Maturity Amount | ₹7,13,658 approx. |
| Official Website | India Post |
To summarize, depositing ₹10,000 every month in the Post Office RD scheme for 5 years results in a total investment of ₹600,000, and you will receive approximately ₹7,13,658 on maturity, thanks to the attractive 6.7% interest rate compounded quarterly. This scheme is ideal for anyone seeking a risk-free, government-backed savings option with consistent returns.
What is a Post Office Recurring Deposit (RD)?
The Post Office RD is a government-backed small savings scheme where investors deposit a fixed amount every month and earn a fixed interest rate over the tenure. This scheme is particularly popular due to:
- Guaranteed Returns: Backed by the Government of India.
- Compounded Interest: Interest is compounded every quarter, leading to higher returns.
- Flexible for All: Anyone can open an account with a minimum deposit of ₹500.
For example, if you invest ₹10,000 every month for 5 years, your total contribution will be ₹600,000, and you can expect a maturity amount of approximately ₹7,13,658.
see also: If You Want Exemption in Income Tax Then Invest in These 5 Schemes
How is the Maturity Amount Calculated?
The calculation formula used by India Post for RD maturity is:
Maturity Amount = P × (1 + r/n) ^ (nt)
Where:
- P = Monthly Installment
- r = Annual Interest Rate (6.7% as of March 2025)
- n = Number of times interest is compounded (4 times a year)
- t = Number of years (5 years)
Example Calculation:
- Monthly Deposit = ₹10,000
- Tenure = 5 years (60 months)
- Interest Rate = 6.7% p.a.
- Compounded Quarterly
Using the formula or official calculators, the maturity comes out to approximately ₹7,13,658.
Step-by-Step Guide to Open a Post Office RD Account
1. Eligibility Criteria
- Any Indian resident above 18 years of age.
- Minors can also open an RD under guardianship.
- Joint accounts allowed (up to 3 individuals).
2. Required Documents
- Aadhar Card (Mandatory)
- PAN Card (Mandatory if deposits exceed ₹50,000 in a year)
- Passport-size photographs
- Address proof (Utility bill, Passport, etc.)
- Post Office Savings Account (Optional but beneficial for easy transactions)
3. Steps to Open Account
- Visit the nearest Post Office branch.
- Collect and fill out the RD Account Opening Form (Form-A).
- Submit KYC documents.
- Deposit the first installment (minimum ₹500, in this case ₹10,000).
- Get the RD passbook as proof.
Alternatively, some post offices offer online RD opening if you have an active India Post internet banking account.
Key Benefits of Investing ₹10,000 Monthly in Post Office RD
1. Risk-Free Investment
The scheme is backed by the Government of India, making it one of the safest saving options.
2. Attractive Returns
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At 6.7% interest compounded quarterly, the RD gives better returns than regular savings accounts.
3. Tax Benefits
While RD interest is taxable, no TDS (Tax Deducted at Source) is deducted. Investors need to declare the interest under ‘Income from Other Sources’ during ITR filing.
4. Loan Facility
After 12 installments, account holders can avail up to 50% loan against their RD balance.
see also: How to Make a Profit of ₹ 3 Lakh by Saving ₹ 70 Per Day in PPF Scheme
Important Things to Keep in Mind
| Aspect | Details |
|---|---|
| Premature Closure | Allowed after 3 years but with a penalty, interest paid at savings account rate |
| Default in Payments | Penalty of ₹1 per ₹100 per month of default |
| Extension Facility | Account can be extended for another 5 years |
| Nomination Facility | Available at account opening and during the tenure |
Post Office RD Scheme FAQs
1. What happens if I miss an RD installment?
A penalty of ₹1 per ₹100 per month per default is charged. If 4 consecutive defaults occur, the account is discontinued but can be revived within 2 months.
2. Is the Post Office RD better than bank RD?
For risk-averse investors, Post Office RD offers slightly higher interest rates and is backed by the government, making it safer than private banks’ RD options.
3. Can NRIs invest in Post Office RD?
No, NRIs (Non-Resident Indians) are not eligible for Post Office RD accounts.
4. Is the interest earned taxable?
Yes, the interest earned is fully taxable. However, no TDS is deducted at source.
5. Can I open multiple RD accounts?
Yes, you can open multiple RD accounts at different post offices or even at the same post office.
