Post Office RD Scheme: Invest ₹10,000 per month, get a guaranteed return of ₹7.13 lakh in 5 years
Post Office RD Scheme: Invest ₹10,000 per month, get a guaranteed return of ₹7.13 lakh in 5 years
Safe government-backed savings option with quarterly compounding interest
Many investors still prefer traditional, low-risk instruments over market-linked options. For such individuals, the Post Office National Savings Recurring Deposit (RD) Scheme offers a reliable way to build wealth through disciplined savings.
Under this scheme, if you invest ₹10,000 every month for 5 years (60 months), you will deposit a total of ₹6,00,000. At the current annual interest rate of 6.7% (compounded quarterly), you will earn ₹1,13,658 as interest, giving you a guaranteed maturity value of ₹7,13,658.29.
Key features of the scheme:
- Eligibility: Any Indian citizen can open an account (single, joint, or minor through guardian). Children above 10 years can also operate their account independently.
- Minimum deposit: ₹100 per month (in multiples of ₹10). No maximum limit.
- Tenure: Fixed at 5 years (60 months).
- Interest rate: 6.7% p.a. (till September 2025), compounded quarterly.
- Deposit timing: Best to deposit on or before the 15th of every month.
- Loan facility: Up to 50% of the deposited amount after 1 year of account opening.
- Tax benefits: No tax benefit under Section 80C.
- Missed payments: ₹1 penalty per ₹100 if a deposit is missed. Account may be closed after 4 consecutive defaults but can be reopened.
- Premature closure: Allowed after 3 years. If closed earlier, only savings account interest rate is applicable.
The Post Office RD Scheme is especially popular among employees, housewives, senior citizens, and parents planning for children’s futures, as it combines government security, fixed returns, and small monthly investment flexibility.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Interest rates are subject to periodic revision by the Government of India. Investors should check the latest rates and scheme rules with India Post before investing.
