The Post Office Recurring Deposit (RD) Scheme is one of the most secure and reliable investment options available in India. If you invest ₹3,500 per month in this scheme, you can accumulate ₹2,49,776 in five years, thanks to its attractive 6.7% annual interest rate (compounded quarterly).
In this article, we will break down everything you need to know about the Post Office RD Scheme, including how to invest, how the interest is calculated, and why this scheme is an excellent choice for safe, steady savings.
Post Office RD Scheme Investing ₹3,500 per Month
| Feature | Details |
|---|---|
| Scheme Name | Post Office Recurring Deposit (RD) Scheme |
| Investment Amount | ₹3,500 per month |
| Tenure | 5 years (60 months) |
| Interest Rate | 6.7% per annum (compounded quarterly) |
| Maturity Amount | ₹2,49,776 |
| Government Backed? | Yes, by India Post (Ministry of Communications, Government of India) |
| Minimum Deposit | ₹10 per month |
| Maximum Deposit | No upper limit |
| Loan Facility | Available after one year (up to 50% of the balance) |
| Official Website | www.indiapost.gov.in |
The Post Office RD Scheme is a fantastic investment option for individuals looking for secure, government-backed savings with guaranteed returns. If you invest ₹3,500 per month, you will accumulate approximately ₹2,49,776 in five years.
This scheme is particularly beneficial for individuals who prefer risk-free savings plans, such as retirees, students, and salaried professionals. Start your Post Office RD investment today and enjoy the benefits of disciplined savings!
What is the Post Office RD Scheme?
The Post Office Recurring Deposit (RD) Scheme is a small savings plan that allows investors to deposit a fixed amount every month and earn compounded interest over a set period. This scheme is ideal for individuals looking for low-risk investment options with guaranteed returns.
Who Can Open a Post Office RD Account?
- Any Indian citizen (individuals only, not businesses or trusts)
- Minors above 10 years (A guardian can open an RD account on behalf of a minor)
- Joint accounts can be opened by up to two individuals
see also: Invest Rs 70 Daily in This Post Office Scheme and Earn Rs 3 Lakh on Maturity
How Much Will You Earn? (Calculation Breakdown)
The Post Office RD interest rate is 6.7% per annum, compounded quarterly. This means that your interest is calculated every three months and added to your principal amount.
Let’s see how ₹3,500 per month grows over 5 years:
RD Calculation Formula:
M=R×((1+i)n−11−(1+i)−1/3)M = R \times \left( \frac{(1 + i)^n – 1}{1 – (1 + i)^{-1/3}} \right)
Where:
- M = Maturity amount
- R = Monthly deposit (₹3,500)
- i = Interest rate per quarter (6.7% ÷ 4 = 1.675% or 0.01675)
- n = Number of quarters (5 years × 4 = 20 quarters)
Using this formula:
M=3,500×((1+0.01675)20−11−(1+0.01675)−1/3)M = 3,500 \times \left( \frac{(1 + 0.01675)^{20} – 1}{1 – (1 + 0.01675)^{-1/3}} \right)
This results in a maturity amount of approximately ₹2,49,776.
Step-by-Step Guide to Investing in the Post Office RD Scheme
1. Visit the Nearest Post Office
Locate your nearest post office and inquire about the RD scheme application process.
2. Fill Out the Application Form
Provide the required details and select your monthly deposit amount.
3. Submit Required Documents
- Aadhaar Card / PAN Card (Identity proof)
- Address Proof (Utility bill, voter ID, or bank statement)
- Passport-sized photographs
- Initial deposit amount
4. Choose a Deposit Method
- Cash or cheque payment
- Post Office Savings Account auto-debit
- Online payment via India Post Payments Bank (IPPB)
5. Start Depositing Monthly
Ensure timely deposits every month to avoid a penalty of ₹1 per ₹100 of the missed deposit.
see also: Post Office Fixed Deposit 2025
Advantages of the Post Office RD Scheme
1. Secure & Risk-Free Investment
Since the scheme is backed by the Government of India, your investment is 100% safe.
2. Compound Interest for Higher Returns
The quarterly compounding effect helps your money grow faster than regular savings accounts.
3. Loan Facility After One Year
You can take a loan up to 50% of your RD balance after one year.
4. Nomination Facility Available
Easily assign a nominee to ensure your savings are transferred in case of unforeseen circumstances.
Post Office RD Scheme Investing ₹3,500 per Month FAQs
1. Can I withdraw my RD before maturity?
Yes, but only after three years, and you may receive a lower interest rate than initially agreed.
2. What happens if I miss a deposit?
A penalty of ₹1 per ₹100 of the missed deposit will be charged.
3. Can NRIs invest in the Post Office RD Scheme?
No, NRIs are not eligible to invest in this scheme.
4. Can I extend my RD account after five years?
Yes, you can extend it for another five years with the same interest rate.
