Quick answer
A recurring deposit adds a fixed amount every month, and each instalment compounds quarterly for the time it stays invested. ₹5,000 a month for 5 years in a Post Office RD at 6.7% matures to about ₹3,56,829, on deposits of ₹3,00,000.
Key takeaways
- Current rate: 6.7% p.a. for Oct–Dec 2026 (Q3 FY 2026-27). The government resets it every quarter.
- RD interest is taxable at your slab rate, and TDS applies like an FD.
- Missed instalments attract a small penalty. Four missed instalments can close a post office RD.
RD maturity formula
M = Σ R × (1 + r/4)(months remaining ÷ 3)- R = monthly instalment
- Each instalment compounds quarterly until maturity
Frequently asked questions
What is the post office RD interest rate now?
6.7% per year, compounded quarterly, for Oct–Dec 2026 (Q3 FY 2026-27). The tenure is 5 years.
Can I withdraw from an RD early?
Banks allow premature closure with a small interest penalty. Post office RDs can be closed after 3 years, earning the savings account rate. A loan of up to 50% of the balance is allowed after 1 year.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.