Investments
Post Office RD Calculator
Post Office Recurring Deposit (5-year, extendable to 10) at 6.7% notified rate — quarterly compounded, sovereign-backed. Calculate maturity + loan eligibility + extension scenarios for FY 2026-27.
Inputs
Q1 FY 2026-27 · Government-notified · Compounded quarterly
Interest is taxable at your slab rate. TDS deducted if total RD interest at one post office exceeds ₹40,000/year (₹1L for seniors). Submit Form 15G/15H to avoid TDS.
Year-by-year balance
Compounded quarterly at 6.7% p.a. · Govt-notified rate
Default rules
- • Miss 4 consecutive installments → account discontinued
- • Default charge: ₹0.05 per ₹5 of missed installment (1%)
- • Revive within 2 months by paying outstanding + penalty
- • Account can be revived only once after discontinuation
Premature exit
- • Closure allowed only after 3 years from opening
- • Interest paid only at Post Office Savings rate (4%) for premature
- • No premature closure within 3 years (except on death of depositor)
- • On death: full balance + interest paid to nominee
Post Office RD vs Bank RD — quick comparison
| Feature | Post Office RD | Bank RD (typical PSU) |
|---|---|---|
| Rate (May 2026) | 6.7% (Govt notified) | 6.0–7.5% (bank-set) |
| Tenure | 5 years fixed (+5Y extension) | 6 months to 10 years |
| Min deposit | ₹100/month | ₹500/month typical |
| Max deposit | No limit | No limit |
| Backing | Sovereign — no cap | DICGC up to ₹5L |
| Compounding | Quarterly | Quarterly (most banks) |
| Premature closure | After 3 yrs only (PO Savings rate) | Any time (1% penalty typical) |
| Loan against | After 12 deposits, 50% of balance | 75–90% after 6 months |
| Senior bonus | No senior bonus | 0.25–0.50% extra |
For seniors, bank RDs typically win by 0.25–0.50% with senior bonus. For non-seniors with amounts > ₹5 lakh (DICGC cap), Post Office RD is the safer option.
FAQs
What is the Post Office RD interest rate in 2026?
6.7% per annum (Q1 FY 2026-27), compounded quarterly. The rate is government-notified and revised quarterly by the Ministry of Finance. Rate applicable to your account is the one prevailing at the time of opening — locked for the full 5-year term.
What is the minimum and maximum deposit for Post Office RD?
Minimum ₹100 per month (multiples of ₹10 thereafter). No maximum limit. You can open multiple RD accounts at the same post office or different post offices.
Can I extend Post Office RD beyond 5 years?
Yes, one extension of 5 more years is allowed, taking the total tenure up to 10 years. Extension must be applied within 1 year of maturity. Rate during extension is the rate prevailing at extension date.
Can I take a loan against Post Office RD?
Yes, after completing 12 monthly deposits (1 year). You can borrow up to 50% of the balance. Loan interest rate is 2% above the RD rate (i.e., 8.7% currently). Loan must be repaid within the remaining tenure of the RD account.
What happens if I miss a Post Office RD installment?
A default charge of ₹0.05 per ₹5 of missed installment applies (1%). If 4 consecutive installments are missed, the account is discontinued. You can revive within 2 months by paying outstanding + penalty. Account can be revived only once.
Is Post Office RD interest taxable?
Yes. Interest is fully taxable at your slab rate. TDS at 10% is deducted if total interest at one post office crosses ₹40,000/year (₹1,00,000 for seniors). Submit Form 15G/15H if your total tax liability is zero.
Can I close my Post Office RD before 5 years?
Premature closure is allowed only after 3 years from opening. Interest is paid at the lower Post Office Savings rate (4%) instead of the RD rate. Within 3 years, premature closure is allowed only on death of depositor.
What is the difference between Post Office RD and bank RD?
Post Office RD has a fixed 5-year tenure (extendable by 5 years) with sovereign backing — no DICGC ₹5L cap. Bank RDs offer flexible tenures (6 months to 10 years) with DICGC cover up to ₹5L. PO RD rate (6.7%) is competitive with most PSU bank RD rates.
Can NRIs open Post Office RD?
No. Post Office RD is restricted to Resident Indians. If you become NRI during an active RD, the account continues till maturity but no new RD can be opened thereafter.
Can I open Post Office RD for a minor?
Yes. A minor above 10 years can open and operate the account directly. A guardian can open on behalf of a minor below 10. Joint RDs (up to 3 adults) are also allowed.