Post Office Scheme: The Post Office Recurring Deposit (RD) scheme is a safe and profitable savings option for the general public. As of January 2026, its interest rate is 6.7% per annum, compounded quarterly. The scheme’s term is 5 years, and it can be extended by another 5 years if needed. If a person saves ₹500 daily, they accumulate approximately ₹15,000 per month. The total deposit amount in 5 years will be ₹9 lakh. After adding interest, you could receive approximately ₹10.70 lakh at maturity. Let’s explain with calculations how you can earn ₹25 lakh from this scheme.
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Post Office Scheme: The Post Office has a great scheme that is very beneficial for the common man. Saving just ₹500 daily can add up to lakhs of rupees over time. This scheme is the Post Office Recurring Deposit (RD) scheme. Currently, as of January 2026, its interest rate is 6.7 percent per annum, compounded quarterly. This means that money keeps growing. The term of the scheme is 5 years, but it can be extended by another 5 years. There is no risk in investing in it because the government provides a guarantee.
Suppose you save ₹500 daily, you’ll accumulate approximately ₹15,000 per month, as ₹500 * 30 days equals ₹15,000. Now, if you deposit ₹15,000 every month for 5 years, your total deposit will be ₹9 lakh, as ₹15,000 * 60 months equals ₹9 lakh. At 6.7% interest, you’ll receive approximately ₹10.70 lakh upon maturity.
You’ll earn ₹1.5 lakh from interest alone.
That means more than ₹1.5 lakh in interest. But the real magic happens when you extend it by another 5 years, totaling 10 years. Interest will continue to accrue on the maturity amount for the first 5 years, and if you continue to deposit ₹15,000 every month, the total deposit will reach ₹18 lakh. After 10 years, the maturity amount will be approximately ₹25 lakh 60 thousand, of which the interest will be approximately ₹7 lakh 60 thousand. Imagine, by saving ₹500 a day, you can earn more than ₹25 lakh in 10 years.
Start investing from Rs 100
This calculation is derived from the Post Office RD formula, where interest is compounded quarterly. If you want to save less, save ₹400 daily and deposit ₹12,000 per month. The total deposit in 5 years will be ₹762,000, with a maturity of approximately ₹856,000.
Extend this for 10 years, and the total deposit will be ₹144,000, with a maturity of approximately ₹205,000. This is what was reported in an Aaj Tak news report. You can start with a minimum of ₹100 per month, with no upper limit. Even a 10-year-old child can open an account with a guardian. Premature withdrawals are possible after 3 years, and a loan of up to 50% is also available after 1 year.
This scheme is also good because the interest is good, it’s safe, and small savings can build a substantial corpus. Perfect for marriage, a child’s education, or retirement. If you’re salaried, set up a monthly auto-debit to avoid forgetting. You can start by visiting your nearest post office or online. Small steps like these can lead to big dreams. Think about it and start today, because interest works its magic over time. How wonderful it will feel to have such a large sum in hand after 10 years.
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