Post Office RD Scheme: In every middle-class family, there’s always this one thought How can we save a little every month and turn it into something useful in the future? Some people buy gold, some keep money in their savings account, but those who want a safe, fixed return often look towards the Post Office Recurring Deposit (RD) scheme.
It works in a very simple way. You just keep putting in a fixed amount every month, and at the end of the chosen period, you get back a lump sum with interest. Let’s say you deposit ₹5,000 every month for 5 years. By the end of it, your savings will grow into ₹3,56,830. Sounds interesting, right? Let’s break it down.
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Post Office RD Interest Rate
At present, the Post Office RD scheme offers an interest rate of 6.7% per annum (compounded quarterly). The tenure is fixed at 5 years. That means you can’t withdraw before that time, unless you close it prematurely with certain conditions. For people who don’t want to take risks, this fixed return feels safe and reliable.
₹5,000 RD Calculation for 5 Years
Here’s how the numbers play out when you invest ₹5,000 every month for 60 months
| Monthly Deposit | Duration | Interest Rate | Total Deposit | Interest Earned | Maturity Amount |
| ₹5,000 | 5 Years (60 months) | 6.7% | ₹3,00,000 | ₹56,830 | ₹3,56,830 |
So even though you put in ₹3 lakh from your pocket, the scheme adds another ₹56,830 as interest. Finally, you walk away with ₹3,56,830 at maturity.
A Real-Life Example
Think of Kavita, a working mother. She started a ₹5,000 RD every month when her daughter entered college. She didn’t think too much about it it was just like paying another bill. Five years later, she had a maturity amount of ₹3,56,830. That lump sum helped her buy a scooter for her daughter without taking any loan. Small, regular savings can really change future moments.
Benefits of Post Office RD
The biggest advantage is safety. Since it is backed by the Government of India, there is no risk of losing your money. The returns are fixed, and you already know how much you’ll get at the end. It’s also flexible because you can start with as low as ₹100 per month, which is perfect for people from all walks of life.
Drawbacks You Should Know
While RD is safe, the returns are not very high compared to inflation or other investments like mutual funds or equity. Another drawback is the lock-in period. If you withdraw before 5 years, you may lose some benefits. Also, the interest earned on RD is taxable, which means your actual earnings can be a little less after tax.
Conclusion
If you save ₹5,000 every month in the Post Office RD scheme for 5 years, you will invest ₹3 lakh in total and get back ₹3,56,830. It’s not a huge jump, but it is completely safe and guaranteed. For families looking for secure, disciplined savings, RD is a good option. However, if you want higher returns and can take some risk, you may need to explore other investments.
Disclaimer
This article is only for educational and general information purposes. The interest rate in Post Office RD changes from time to time as per government rules. Before investing, always check the latest rate and terms at your nearest post office or official website.
