Post Office RD Calculator
Project your 5-year Post Office recurring deposit — the interest rate is set by the Government of India and revised every quarter, so check the current rate before you book.
Year-wise growth
| Year | Deposited | Value at year end |
|---|---|---|
| 1 | ₹60,000 | ₹62,210 |
| 2 | ₹1,20,000 | ₹1,28,694 |
| 3 | ₹1,80,000 | ₹1,99,746 |
| 4 | ₹2,40,000 | ₹2,75,679 |
| 5 | ₹3,00,000 | ₹3,56,829 |
What is a Post Office Recurring Deposit (PORD)?
A Post Office Recurring Deposit (PORD) is a 5-year sovereign-backed monthly savings scheme administered by the Department of Posts (India Post) under the Government Savings Promotion Act. Designed to encourage disciplined micro-savings across urban and rural India, PORD provides 100% capital safety backed by the Consolidated Fund of India.
PORD currently offers a sovereign interest rate of 6.7% per annum, compounded quarterly. The scheme has a fixed statutory tenure of 5 years (60 monthly instalments), with flexible monthly deposits starting from as low as ₹100 per month with no upper investment ceiling.
Key Rules: 5-Year Tenure, Defaults & 5-Year Extension Blocks
Operational and statutory rules governing Post Office Recurring Deposits:
- Deposit Timeline: Deposits must be made by the 15th of each month (if account was opened between the 1st and 15th) or by the last working day of the month (if opened after the 15th).
- Default Penalty: Missing a monthly instalment incurs a default fee of ₹1 for every ₹100 of denomination per month. If an account has 4 consecutive defaults, it is discontinued, but can be revived within 2 months by paying the arrear and default fee.
- Tenure Extension: Upon completing the initial 5-year tenure, the PORD account can be extended for an additional 5 years at the interest rate prevailing at the time of extension.
- Loan Facility: After completing 1 year (12 continuous deposits), you can avail a loan of up to 50% of the accumulated credit balance at an interest rate of 2% above the PORD rate.
The Post Office RD Compounding Formula
M = ∑ [ P × (1 + r/4)^(4 × (60 − i + 1) / 12) ] for i = 1 to 60
- M — Guaranteed maturity value at the end of 5 years (60 months).
- P — Monthly deposit amount (₹100 minimum).
- r — Sovereign notified interest rate (currently 6.7% → 0.067).
- Compounding: Compounded quarterly; credited at maturity.
A Worked Example: ₹5,000 per Month for 5 Years at 6.7% p.a.
Detailed Financial Breakdown for a ₹5,000 Monthly Post Office RD:
- Monthly Deposit: ₹5,000
- Tenure: 5 Years (60 Months)
- Total Amount Deposited: ₹3,00,000 (₹5,000 × 60)
- Guaranteed Interest Earned: ₹56,830
- Final Maturity Value: ₹3,56,830
Post Office RD 5-Year Maturity Values at Current 6.7% Rate
| Monthly Deposit | Total 5-Yr Deposit | Guaranteed Interest | 5-Year Maturity Payout |
|---|---|---|---|
| ₹500/mo | ₹30,000 | ₹5,683 | ₹35,683 |
| ₹1,000/mo | ₹60,000 | ₹11,366 | ₹71,366 |
| ₹2,500/mo | ₹1,50,000 | ₹28,415 | ₹1,78,415 |
| ₹5,000/mo | ₹3,00,000 | ₹56,830 | ₹3,56,830 |
| ₹10,000/mo | ₹6,00,000 | ₹1,13,659 | ₹7,13,659 |
| ₹25,000/mo | ₹15,00,000 | ₹2,84,148 | ₹17,84,148 |
Calculated at 6.7% per annum compounded quarterly. Backed by sovereign government guarantee with zero credit or default risk.
Tax Treatment: Zero TDS Advantage & Premature Closure Rules
Tax implications and premature exit guidelines for Post Office RDs:
- Zero TDS: India Post does NOT deduct any TDS (Tax Deducted at Source) on Post Office Recurring Deposit interest or maturity payouts! However, the interest earned is fully taxable under "Income from Other Sources" at your applicable tax slab.
- Premature Closure (After 3 Years): The account can be closed prematurely after 3 years from the date of opening. In case of premature closure, only the Post Office Savings Account interest rate (currently 4.0% p.a.) is paid on the balance instead of the 6.7% RD rate.
Post office RD questions, answered
Crucial answers on sovereign safety, 6.7% interest rate, zero TDS, loan facility, and 5-year extension blocks.
The current notified interest rate for the Post Office 5-Year Recurring Deposit Account is 6.7% per annum, compounded quarterly. The rate is reviewed and notified quarterly by the Ministry of Finance.
No! India Post does not deduct any TDS on recurring deposit interest upon maturity. However, depositors are legally required to declare the interest earned in their annual Income Tax Return under "Income from Other Sources".
A default fee of ₹1 for every ₹100 denomination per month is levied for delayed deposits. If 4 consecutive instalments are defaulted, the account is classified as discontinued, but can be revived within 2 months by paying all arrears plus default fees.
Yes. After completing 1 year (12 continuous monthly deposits), you can avail a loan of up to 50% of the credit balance standing in your account. The loan interest rate is 2% above the prevailing PORD interest rate.
Yes. On completion of 5 years, you can extend the account for an additional 5 years by submitting an application at the post office. The account will earn interest at the rate applicable at the time of extension.
Premature closure is permitted after completing 3 years from the date of opening. However, upon premature closure, the account holder is only paid interest at the lower Post Office Savings Account rate (4.0% p.a.) instead of the contracted 6.7% rate.
The minimum deposit is ₹100 per month (in multiples of ₹10). There is no upper limit on the monthly deposit amount you can invest in a Post Office RD.
Yes. A Post Office RD account can be opened singly by an adult, jointly by up to three adults (Joint A or Joint B), or by a guardian on behalf of a minor child.
Yes. If you have an active Department of Posts Savings Bank (POSB) account with internet/mobile banking or an IPPB (India Post Payments Bank) account, you can deposit your monthly RD instalments digitally from home.
Post Office RDs offer 100% sovereign guarantee without any upper deposit ceiling and feature zero TDS deduction. Bank RDs offer more flexible tenures (6 months to 10 years) and higher rates for senior citizens, but require 10% TDS under Section 194A.