The Post Office Recurring Deposit (RD) lets you put away a fixed amount every month for five years and earn a government-set rate on it. For October to December 2026 that rate is 6.7% a year, compounded quarterly. Use the calculator above to see what your own monthly amount grows to. This page explains the rate, the rules and the traps that catch people out.
The 5-year Post Office RD pays 6.7% a year for the October to December 2026 quarter, as set in the Finance Ministry’s notification of 30 September 2026. The rate is reviewed every quarter, and the next announcement, for January to March 2027, would normally come in the last week of December. The rate you get is fixed when you open the account. See all schemes side by side in our post office interest rates guide.
These figures use 6.7% compounded quarterly and 60 on-time monthly deposits. The calculator above gives the same results.
| Monthly deposit | Total deposited (5 years) | Interest earned | Maturity value |
|---|---|---|---|
| ₹500 | ₹30,000 | ₹5,683 | ₹35,683 |
| ₹1,000 | ₹60,000 | ₹11,366 | ₹71,366 |
| ₹2,000 | ₹1,20,000 | ₹22,732 | ₹1,42,732 |
| ₹3,000 | ₹1,80,000 | ₹34,097 | ₹2,14,097 |
| ₹5,000 | ₹3,00,000 | ₹56,829 | ₹3,56,829 |
| ₹10,000 | ₹6,00,000 | ₹1,13,658 | ₹7,13,658 |
Interest works out to about 19% of what you deposit over the five years. That is more than 6.7% a year would suggest at first glance, because each deposit only earns interest for the time it is in the account, so early deposits earn the most. A ₹5,000 monthly RD ends with roughly ₹3.57 lakh, of which ₹56,829 is interest.
The rules below come from the National Savings Recurring Deposit Scheme, 2019, published in the Gazette of India (G.S.R. 918(E), 12 December 2019). Rules can be amended, so confirm anything important at your post office.
The scheme rules let you close the account early only after three years from the date of opening, by applying in Form-2. On early closure you are paid interest at the Post Office Savings Account rate, not the RD rate you booked. That rate is 4% for October to December 2026, so you give up a large part of the interest. If you have paid deposits in advance, you cannot close early until the period covered by those advance deposits is over. If there is a real chance you will need the money before three years are up, a different product may suit you better.
Once the account has run for at least one year and 12 monthly deposits have been made, you can take a loan of up to 50% of the deposits made in the account (the rule says deposits, not the balance including interest). The loan carries simple interest at 2 percentage points above the RD rate, which would be 8.7% at the current rate. You can repay it in one lump sum or in equal monthly instalments, and any unpaid amount is recovered from what you receive when the account closes. That is not cheap, so treat it as a last resort. The loan is not available if the account has been discontinued.
The scheme rules treat a missed monthly deposit as a default, and they work like this:
The safest habit is a standing instruction so the deposit never goes late.
Advance deposits. Once your account is running and not discontinued, you can pay six or more monthly instalments in advance, in any month. For an account of ₹100 a month, paying 6 to 11 instalments in advance earns a rebate of ₹10. Paying 12 or more earns ₹40 for every twelve instalments, plus ₹10 for any balance of six or more. For other amounts the rebate is proportionate. No rebate is given for fewer than six advance deposits.
After maturity you have two options. You can continue the account for up to five more years by making the same monthly deposit (Form-4). Or you can leave the maturity amount in the account for up to five more years without fresh deposits (Form-3). Either way, check the interest rate that will apply to the extended period at your post office before you choose, as the rules tie some of it to the Post Office Savings Account rate.
The interest you earn is part of your income and is taxed at your slab rate. Under section 393 of the Income-tax Act, 2025, which has applied since 1 April 2026, a post office deducts TDS only on interest from deposits under schemes the Central Government has notified for this purpose, and only when the interest credited or paid in a year exceeds ₹50,000 (₹1,00,000 for a senior citizen). Interest on deposits under certain other notified schemes is exempt from TDS under section 393(4). Whether or not any TDS is deducted, the interest is taxable and you must declare it in your return. For a government scheme with a tax deduction on the principal, see our Post Office TD calculator, which covers the 5-year Time Deposit.
What is the Post Office RD interest rate now?
6.7% a year, compounded quarterly, for October to December 2026. The rate is reviewed every quarter.
How much will ₹5,000 a month become in a Post Office RD?
About ₹3,56,829 after five years at 6.7%, on total deposits of ₹3,00,000.
What is the minimum amount for a Post Office RD?
₹100 a month, in multiples of ₹10.
Can I close a Post Office RD before five years?
Yes, but only after three years from opening, and you are paid the Post Office Savings Account rate (4% now) instead of the RD rate.
Does the rate change after I open the account?
No. The rate is fixed for your account when you open it, even if the government changes the rate for new accounts.
Sources: Finance Ministry, Department of Economic Affairs, Office Memorandum of 30 September 2026 (rate for October to December 2026); National Savings Recurring Deposit Scheme, 2019, Gazette of India (Extraordinary), G.S.R. 918(E), 12 December 2019 (scheme rules); Income-tax Act, 2025, section 393 (TDS on interest). Calculations are our own, and our formula reproduces the Gazette’s own maturity table (₹7,231.38 for a ₹100 account at the 7.2% rate that applied then). Verified October 2026. Rates are reviewed quarterly and rules can be amended, so confirm with your post office before you open an account. This is general information, not financial advice.
