Post Office RD Scheme: Saving money for the future often feels like a big challenge. But the truth is, even small, disciplined contributions every month can create a solid backup over time. One of the safest and most trusted ways to do this is the Post Office Recurring Deposit (RD) scheme. Backed by the Government of India, it guarantees returns without any risk.Now imagine if you deposit ₹8,000 every month. In 5 years, your money will grow into ₹5,70,929. Let’s understand the complete calculation.
Interest Rate in Post Office RD
At present, the Post Office RD scheme offers 6.7% annual interest, compounded quarterly. The tenure is fixed at 5 years, which makes it perfect for short to medium-term goals like children’s school admission, higher studies, or even buying something important for the family.
Read more: Deposit ₹80,000 and Get ₹21,69,712 After Maturity? – Post Office PPF Scheme
₹8,000 Monthly Deposit – Full Calculation
| Monthly Deposit | Duration | Interest Rate | Total Deposit | Interest Earned | Maturity Value |
| ₹8,000 | 5 Years (60 months) | 6.7% | ₹4,80,000 | ₹90,929 | ₹5,70,929 |
So, you deposit a total of ₹4.8 lakh, and the scheme adds about ₹90,929 as interest. In the end, you receive ₹5,70,929 as a guaranteed maturity amount.
A Real-Life Example
Take the example of Suman, a private school teacher. She wanted to save money for her daughter’s higher education. Every month, she deposited ₹8,000 in a Post Office RD. At first, it felt like a burden, but gradually it became a habit. After 5 years, when her RD matured, she had more than ₹5.7 lakh in hand. That money gave her the confidence to pay her daughter’s admission fees without borrowing. This is the strength of RD a small monthly effort that brings big relief later.
Benefits of Post Office RD
The best part about RD is that it is risk-free and disciplined. You don’t need to worry about market ups and downs. It’s especially useful for middle-class families who want a safe and predictable return. However, keep in mind that the interest earned is taxable, and returns may look moderate compared to market-linked investments.
Read more: Deposit ₹10,000 for Your Children and Get ₹7,13,659 After 5 Years Check Exact Calculation
Conclusion
By depositing ₹8,000 every month in the Post Office RD scheme, you can build a fund of ₹5,70,929 in 5 years. Your own investment of ₹4.8 lakh grows with nearly ₹91,000 interest. For families who want guaranteed savings for their children’s future or short-term goals, Post Office RD remains a reliable choice.
Disclaimer
This article is only for educational and general knowledge purposes. Interest rates in Post Office RD are revised by the government every quarter. Please check the latest details with your nearest Post Office before investing.
