Post Office RD Scheme: Deposit ₹11,111 Every Month and Become a Lakhpati — Check Returns at 6.7% Interest
Post Office RD Scheme: Deposit ₹11,111 Every Month and Become a Lakhpati — Check Returns at 6.7% Interest
If you are searching for a secure investment option that offers steady and assured returns, the Post Office Recurring Deposit (RD) scheme can be a reliable choice. Backed by the Government of India and operated through India Post, this scheme is designed for individuals who prefer disciplined monthly savings over market-linked risk. With a fixed tenure of five years, it allows investors to systematically build a substantial corpus through regular deposits.
As of February 2026, the RD scheme offers an interest rate of 6.7% per annum, compounded quarterly. This rate is applicable for the January–March 2026 quarter and is reviewed by the government every three months. However, it currently remains unchanged at 6.7%. It is important to note that unlike some other small savings schemes, no additional interest benefit is provided to senior citizens under the Post Office RD scheme.
Now, let’s understand the returns if you choose to deposit ₹11,111 every month. Since the scheme runs for a fixed period of five years, or 60 months, your total contribution over the entire tenure would be ₹11,111 multiplied by 60. This brings your total invested amount to ₹6,66,660. Based on calculations provided by ClearTax, at an annual interest rate of 6.7% compounded quarterly, the total interest earned over five years would be approximately ₹1,26,285.72. At maturity, this would result in a total payout of ₹7,92,945.72 — helping you build a fund of nearly ₹8 lakh through disciplined monthly savings.
The scheme is accessible to a wide range of investors. You can start with a minimum deposit of just ₹100 per month, and contributions must be made in multiples of ₹10 thereafter. There is no maximum investment limit, which means investors can choose an amount that aligns with their financial goals. The interest is compounded quarterly, adding to the overall growth of your savings over time.
Another useful feature of the Post Office RD scheme is the loan facility. After successfully depositing 12 consecutive monthly installments, you are eligible to take a loan against a portion of your accumulated balance. This provides some flexibility in case of urgent financial needs. However, if you wish to close the account before completing the full tenure, premature closure is permitted only after three years.
This scheme can be particularly beneficial for salaried individuals, homemakers, small investors, or parents planning for their children’s education and future expenses. It encourages consistent saving while offering government-backed security and predictable returns.
