The Post Office Recurring Deposit Account is a government-guaranteed scheme of depositing small amounts in installments with better interest rate. In this scheme, you can start investing with a small amount of just Rs 100. Moreover, there is no maximum investment limit, you can invest as much money as you want.
It must be noted that the Post Office Recurring Deposit account can be opened for five years. However, banks offer the facility of recurring deposit accounts for six months, 1 year, 2 years, 3 years. Interest is calculated every quarter (at annual rate) on the deposited money and it is added (including compound interest) to your account at the end of every quarter.
Post Office Recurring Deposit: Know the interest rate
At present, the Post Office Recurring Deposit scheme offer interest of 5.8%. This new interest rate is applicable from April 1, 2020. The Central government has fixed the interest rates of all its small savings schemes every quarter.
Invest Rs 10000 every month, and you get return of Rs 16 lakh
If you invest Rs 10,000 every month in the post office RD scheme for 10 years, then after 10 years you will get more than Rs 16 lakh at the rate of 5.8%.
Interest rates on post office savings schemes
| Instrument | Interest rate (%) for July 1, 2021 to Sep 30, 2021 | Compounding frequency |
| Savings Account | 4 % | Annually |
| 1 year Time Deposit | 5.5 % | Quarterly |
| 2 year Time Deposit | 5.5 % | Quarterly |
| 3 year Time Deposit | 5.5 % | Quarterly |
| 5 year Time Deposit | 6.7 % | Quarterly |
| 5-year Recurring Deposit | 5.8 % | Quarterly |
| 5-year Senior Citizen Savings Scheme | 7.4 % | Quarterly and Paid |
| 5-year Monthly Income Account | 6.6 % | Monthly and Paid |
| 5-year National Savings Certificate | 6.8 % | Annually |
| Public Provident Fund | 7.1 % | Annually |
| Kisan Vikas Patra | 6.9 (will mature in 124 months) | Annually |
| Sukanya Samriddhi Yojana | 7.6 % | Annually |
