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Post Office RD Calculator

  • 100
  • 10 Cr
  • 1
  • 10


Recurring Deposit Breakdown

Invested Amount

Estimated Return

Maturity Value

Post Office RD Calculator Online

Depositors can use the post office RD calculator to rapidly compute their returns or maturity amounts from their recurring deposit account with the post office. With Urban Money's online post office RD calculator, you can quickly get the maturity amount by providing a couple of entries.

What is Post Office RD?

The post office recurring deposit plan allows you to regularly deposit a set amount of money into your account. You can quickly deposit your monthly savings and receive interest on them, resulting in large returns at maturity. The post office recurring deposit account has an array of features listed below for your convenience.

Key Features and Benefits of Post Office RD

  • The RD rate of interest in the post office can reach 5.8% each year.
  • To open a post office RD account, you must be at least ten years old.
  • You need to deposit INR 100 to open a post office RD account.
  • The least amount that can be contributed to a post office RD is INR 10.
  • The maximum contribution has no restrictions.
  • In addition, India Post offers a return of INR 40 for 12 deposits and INR 10 in the case of 6 deposits.
  • Post office RD account holders are also eligible for a loan of up to 50% of their total deposit.
  • The interest in a post office RD compounds every quarter or four times a year.
  • Initially, post office RDs have a maximum tenure of 5 years, with the option to extend it for another 5 years at maturity. 

After reading about its benefits, you may feel compelled to open a post office RD account. The first step is to determine your eligibility and the expected maturity rate. You'll need to know how to calculate the post office RD rate of interest and estimate returns. 

How to Calculate Interest on Post Office RD?

You can calculate the interest on post office RD through manual computation or via a post office RD calculator. An RD calculator allows you to compute values within a fraction of a second. In contrast, the manual calculation will require you to rely on a formula. 

The following is the formula to calculate RD returns from the post office RD account:

M = R[(1+i)n – 1]/1-(1+i)(-1/3) 


M - Total Maturity Value

R - Number of Monthly Deposits

n - Tenure (years)

i - Offered Rate of Interest

Let's go through an example to understand how to compute returns through this formula. Suppose you decide to deposit an amount of INR 10,000 in your RD every month for a tenure of 5 years at an interest rate of 5.8%. 

In the given scenario, 

R is 10000, n is 5, and i is 5.8.

Put these values in the formula:

M = 10000[(1+5.8)5 – 1]/1-(1+5.8)(-1/3) 

M is equal to INR 6,96,967

Hence, if you deposit INR 10,000 every month in a post office RD for 5 years, you will get an amount of INR 6,96,967 at the time of maturity. In this tenure, you deposited INR 6,00,000, and the rest of INR 96,967 is the interest you secured in 5 years. 

The manual computation of the returns can be daunting and strenuous. There is the possibility of mathematical errors in addition to the lengthy process. Urban Money's post office RD calculator eliminates all such hassles.

What is Post Office RD Calculator?

The post office RD calculator is a cutting-edge tool that lets you calculate the projected returns on a recurrent deposit at maturity. You only need to provide a few details, and the AI-based calculator will handle the rest.

You must enter the following information into the RD calculator:

  • Monthly Investment: The amount you will be depositing monthly
  • Rate of Interest (per annum): The rate of interest offered by the post office on the recurring deposit
  • Period: The number of years for which you are willing to lock in your deposit amount
With the inputs given, the postal RD calculator computes the required numbers and displays them:
  • Invested Amount - Overall amount invested in the RD until maturity
  • Returns - Overall interest you will secure on your RD investment
  • Total Value - Final maturity value

Once you are familiar with the components of the calculator, it is critical to know how the RD interest calculator works. Calculations made with the post office RD calculator will be quick and seamless.

How to Use RD Post Office Calculator

Using the post office RD interest rate calculator is quick and easy. You can use the calculator by carrying out a couple of simple steps:

Step 1: Access the post office RD interest rate calculator on your computer or mobile device.

Step 2: Now enter specific details in the post office RD calculator, such as monthly investment amount, interest rate per annum, and investment tenure. 

Step 3: Press enter, and that is it. The calculator will compute the values, and the results will be shown on your screen. It will include the investment amount, interest secured, and total amount in your RD account. 

That's all! Therefore, it is much easier than computing values through the traditional mathematical formula without the possibility of error. In split seconds, you will access the earnings you have made through the RD account and the maturity value. 

Benefits of Using Post Office RD Calculator

When you use the post office RD calculator, you unlock various benefits. Here's what exactly you get when you access the RD calculator:

  • The RD calculator saves your time and effort by performing all calculations automatically and immediately.
  • It merely requires a few details from you and eliminates the need for error-prone human calculations.
  • Every time you use the RD calculator, you will get accurate results.
  • You may plan your investment correctly if you have precise return numbers, such as how much money you want to give monthly and for what tenure.
  • You can easily change the calculator's input values to receive different results, allowing you to compare many plans. Select the best one based on your financial situation and objectives.

Benefits of Post Office Recurring Deposit

  • The post office RD interest rate has been locked at 5.8% per annum, compounded quarterly for the current fiscal year.
  • The minimum time for a post office RD is 5 years. However, you can extend it for the next 5 years. 
  • You can deposit as low as INR 10 in your post office RD account. Additionally, there is no maximum limit for the amount you can deposit in an RD account. 
  • If you fail to submit the monthly deposit, you will have to pay INR 1 for every 100 rupees as a penalty. 
  • The post office RD account comes with the option of a joint account. So, if you are willing to open a joint RD account, you can opt for it with a simple procedure.
  • If you make an advance deposit for 6 months, you may get a rebate. 

The best part about such investments is that you can quickly transfer your account from one branch to another if you relocate to some other place. 

Post Office RD Interest Rates

Interest Rate 5.8 Percent per annum compounded quarterly.
Time Period 5 Years
Minimum Deposit INR 100 per month
Maximum Deposit There is no upper limit for the RD deposit amount, but it should be in the multiple of 10.
Missed Deposit Penalty INR 1 for every 100 rupees on the missed deposit. 

One Factor that Affects Post Office RD Interest Rate

The rates on government securities, sometimes known as G-sec, have an impact on the profit earned through Post Office RD. 

Both the federal government as well as state governments are responsible for issuing G-sec. These instruments are inherently tradable, like treasury bills and government bonds.

Deposit Limit in the Recurring Deposit Account

The recurring deposit is contemplated as the most convenient investment tool for earning excellent returns at maturity. Consumers usually avoid large investments because they demand large monthly contributions. However, with a post office recurring deposit, people can make deposits of their chosen amount.

According to post office RD standards, the minimum monthly deposit is ten rupees. In this manner, no one's monthly investments will burn a hole in their pocket. This has made it incredibly simple to save for the future, especially for people who barely make ends meet. Furthermore, there is no maximum deposit limit. As a general guideline, you can increase your deposit amount by a multiple of 5.

Frequently Asked Questions (FAQs)

How is RD calculated in the post office?

RD is calculated through the maturity formula that is: M =R[(1+i)n – 1]/1-(1+i)(-1/3), where, M represents the total maturity value, R denotes the number of monthly deposits, n is the tenure in years and i represents the offered rate of interest.

What is the current RD rate in the post office?

The current RD rate in the post office for the financial year 2020-23 is locked at 5.8%.

Can we stop RD in between?

Yes, you can close the RD account in between before the end of the maturity period.

Is RD tax-free?

No Recurring Deposits do not fall into the category of tax exemptions. You have to pay income tax on the interest amount secured through the recurring deposits. However, the tax will be paid based on the RD holder’s tax slab.

Can I deposit extra money in RD?

Yes, you can increase your deposit amount by a multiple of 5 rupees. Additionally, if you pay a deposit in advance for 6 months, you will get a rebate.

What is the maturity amount in RD?

The maturity amount in RD is the total invested amount in addition to the interest secured.

Can I withdraw RD before maturity?

Once the RD amount is deposited, you cannot withdraw the amount before immaturity. Additionally, no partial withdrawal is entertained.