The Post Office Recurring Deposit (RD) Scheme 2025 is one of the most popular savings schemes offered by India Post. It allows individuals to deposit a fixed amount every month and earn guaranteed interest over a five-year period. This scheme is ideal for those looking for safe, risk-free investment options with attractive returns.
In this article, we will cover everything you need to know about the Post Office RD Scheme 2025, including its eligibility criteria, required documents, benefits, and how to open an account. Whether you are a salaried employee, a student, or a retiree, this guide will help you make informed decisions about your savings.
Post Office RD Scheme 2025
| Feature | Details |
|---|---|
| Scheme Name | Post Office Recurring Deposit (RD) Scheme 2025 |
| Interest Rate | 6.7% per annum (compounded quarterly) |
| Deposit Tenure | 5 Years (can be extended by another 5 years) |
| Minimum Deposit | Rs. 100 per month (multiples of Rs. 10) |
| Maximum Deposit | No upper limit |
| Eligibility | Indian residents, minors above 10 years (self), below 10 years (guardian-operated) |
| Withdrawal | Premature withdrawal allowed after 3 years |
| Penalty for Late Payment | Rs. 1 per Rs. 100 per month |
| Tax Benefits | Interest is taxable; no deduction under 80C |
| Official Website | India Post |
The Post Office RD Scheme 2025 is an excellent investment option for individuals looking for safe, guaranteed, and disciplined savings. With flexible monthly deposits, attractive interest rates, and government backing, it remains one of the best small savings schemes in India.
What is the Post Office RD Scheme?
The Post Office RD Scheme is a government-backed savings option that encourages disciplined savings by allowing individuals to deposit a fixed amount every month. This scheme is a great choice for those who want to save consistently and earn safe, guaranteed returns.
Unlike fixed deposits (FDs), where a lump sum is required upfront, an RD account helps people build wealth gradually through small monthly contributions.
see also: Post Office Scheme Get Rs 45 Lakh by Investing Only Rs 11 Lakh
Eligibility Criteria for Post Office RD Scheme 2025
To open an RD account at the Post Office, you must meet the following eligibility conditions:
- Indian Residents – Any Indian citizen above 18 years of age can open an RD account.
- Minors – Children above 10 years can open and operate their RD account independently.
- Joint Accounts – Up to three adults can open a joint RD account.
- Guardian Accounts – A guardian can open an RD account on behalf of a minor (below 10 years).
- Multiple Accounts – There is no limit on the number of RD accounts an individual can open.
Documents Required to Open an RD Account
To open a Post Office RD account, you need to submit the following KYC (Know Your Customer) documents:
1. Identity Proof (Any one of the following)
- Aadhaar Card
- Passport
- PAN Card
- Voter ID Card
- Driving License
2. Address Proof (Any one of the following)
- Aadhaar Card
- Passport
- Voter ID Card
- Utility Bills (Electricity, Water, or Gas, not older than 3 months)
3. Additional Requirements
- Two passport-size photographs
- Duly filled Post Office RD account opening form
- PAN Card (Mandatory for deposits above Rs. 50,000)
- Nomination Form (Optional but recommended)
Ensure all documents are self-attested before submission.
How to Open a Post Office RD Account?
You can open an RD account either online (if available) or by visiting the nearest post office. Here’s a step-by-step guide:
1. Offline Process (Visiting the Post Office)
- Visit your nearest Post Office branch.
- Collect and fill out the RD account opening form.
- Attach the KYC documents and two passport-size photographs.
- Submit the form along with the initial deposit (minimum Rs. 100).
- Receive the RD passbook as confirmation of your account opening.
2. Online Process (If Available)
- Log in to your India Post online banking account.
- Navigate to the RD account section.
- Fill out the online application form.
- Upload scanned copies of your KYC documents.
- Make the first deposit through online payment.
- Receive confirmation via SMS and email.
Benefits of Post Office RD Scheme 2025
1. Guaranteed Returns
The Post Office RD scheme offers a fixed interest rate (6.7% per annum, compounded quarterly), making it safer than market-linked investments.
2. Flexible Investment Amount
You can start with as little as Rs. 100 per month, making it accessible for all income groups.
3. Premature Withdrawal Option
After three years, you can withdraw a portion of your savings in case of emergencies.
4. Loan Facility Against RD
You can take a loan of up to 50% of the balance in your RD account after one year.
5. Post Office Backing
Since India Post is a government-backed institution, your money is 100% safe and secure.
see also: Investing ₹25,000 Annually in Post Office PPF
Post Office RD Scheme 2025 FAQs
1. Can I withdraw my Post Office RD before maturity?
Yes, but only after 3 years from the date of opening. A premature withdrawal penalty will apply.
2. Is TDS deducted on Post Office RD interest?
No TDS (Tax Deducted at Source) is deducted. However, the interest earned is taxable under “Income from Other Sources”.
3. Can I open multiple RD accounts in a post office?
Yes, you can open multiple RD accounts in a single or joint name.
4. What happens if I miss an RD installment?
A penalty of Rs. 1 per Rs. 100 per month is charged for late deposits.
5. Can NRIs open a Post Office RD account?
No, NRIs cannot open an RD account in the Post Office.
