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Post Office RD Calculator

Post Office schemes help diversify your financial portfolio and the Post Office RD Calculator can help you track the maturity amount. Scroll down to know more!

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In the realm of personal finance, finding effective ways to save and invest money is a constant pursuit. It is essential to explore reliable options that offer attractive returns while maintaining ease and convenience. One such avenue that has stood the test of time is the Post Office Recurring Deposit (RD) scheme. This article delves into the intricacies of the Post Office RD Calculator and how it can assist individuals in their financial planning journey.

What is a Post Office RD?
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India Post allows individuals to open a Recurring Deposit account through which they can deposit a fixed amount of money every month and earn interest over a period of time. Currently, the interest rate set by India Post is 6.2% per annum; the interest is compounded quarterly. 

Here are some important details:

  1. The minimum amount required to open an account is Rs. 100/month

  2. There is cap on the  maximum amount that can be deposited

  3. A post office RD can be opened even for minors 

  4. The maturity period is 5 years

  5. If you wish to increase the maturity period, you can do so (another 5 years) by submitting an application form

What is a Post office RD calculator?
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The Post Office RD calculator is a convenient online tool provided by the Indian Post Office. It helps you estimate the final amount and interest earned on your Post Office Recurring Deposit (RD) investments. You can easily input all necessary details to obtain an approximate calculation of the expected returns from your RD investments. The calculator considers the compounding of interest, usually done quarterly, to provide accurate results.

PostOfficeRD Calculator

Optimize Post Office RD Investments with Our Calculator

Monthly Investment
Rate of interest (p.a) %
Time period
Total Maturity Amount
₹ 0
Money you invested
₹ 5,000
₹ 0

How to use the Post Office RD Calculator
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Using the Post Office RD Calculator is a straightforward process. Here's a step-by-step guide to help you make the most of this powerful financial planning tool.

Step 1: Access the Post Office RD Calculator on the official Post Office website.

Step 2: Enter the monthly deposit amount you intend to make. Ensure that this amount aligns with your financial capabilities and goals.

Step 3: Specify the tenure of your RD scheme. This duration will determine the overall period for which your investment will accrue interest.

Step 4: Input the current interest rate provided by the Post Office for RD schemes. It is crucial to stay updated on these rates as they may change periodically.

Step 5: After entering the necessary details, click on the "Calculate" button to generate an accurate estimation of the maturity amount.

Step 6: Evaluate the results to gain insights into the growth of your investment. Consider adjusting the variables to explore different scenarios and find the most suitable plan for your financial goals.

Key Features of Post Office RD Calculator
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Here are the advantages of using the post office RD calculator.

Ensuring Efficient Financial Planning
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Planning for the future requires careful consideration of various factors, such as the desired savings amount, duration, and interest rates. The Post Office RD Calculator acts as a valuable tool by providing an accurate estimation of the maturity amount based on these variables. It allows individuals to tailor their savings plan according to their specific financial goals.

Easy Accessibility and User-Friendly Interface
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The Post Office RD Calculator is readily accessible online, making it a convenient tool for users. With its user-friendly interface, you can effortlessly input the desired savings amount, tenure, and applicable interest rates. The calculator then computes the maturity value, eliminating the need for complex manual calculations.

Accurate Projections for Informed Decision-Making
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By using the Post Office RD Calculator, you can obtain precise projections of the investments over time. These projections empower you to make informed decisions about the feasibility and desirability of the investment, allowing for adjustments as needed. It serves as a valuable aid in the decision-making process, ensuring clarity and transparency.

Factors that affect Post Office RD Interest earnings
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When it comes to the Post Office Recurring Deposit (RD) scheme, there are several factors that can have an impact on earnings. It's important to consider these factors to understand how the interest on your RD is calculated and how it can potentially fluctuate. Let's delve into the factors that influence the interest earnings of the Post Office RD.

  1. Rate of Interest on Post Office Term Deposits: The interest rate offered on Post Office term deposits, including the RD scheme, is directly linked to the yields from government securities. These securities are issued by both the central and state governments and serve as tradable instruments. They can be short-term, such as treasury bills, or long-term, like government bonds.

  2. Yield on Government Securities: The yield on government securities is a crucial determinant of the interest rate on Post Office RDs. As of 15th May 2020, the current yield on the 10-year government bond stood at 6.08%. This yield reflects the return that investors can expect from holding these securities for the specified tenure. Changes in the yield on government securities can lead to fluctuations in the interest rates offered on Post Office RDs.

Understanding the relationship between these factors and their influence on the interest earnings of the Post Office RD can help individuals make informed decisions about their investments and manage their expectations accordingly.

Post Office RD Interests Rates
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Minimum deposit

Rs. 100

Maximum deposit

No cap


5 years

Rate of interest

6.50% per annum

Penalty for missed payments

Re.1 for every Rs. 100

The formula for Post Office RD
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Calculating the returns from a Post Office RD account involves using a specific formula. This formula takes into account various variables to determine the total value of maturity. Let's explore the formula in detail.

The formula for calculating the total value of maturity (M) from a Post Office RD account is as follows.

M = R[(1 + i)^n - 1] / [1 - (1 + i)^(-1/3)]

Here's what each variable represents.

By plugging in the appropriate values for R, n, and i into this formula, you can calculate the estimated total value of maturity for your Post Office RD account. It's important to note that the formula provides an estimation and the actual maturity amount may vary slightly due to factors such as changes in interest rates or any additional charges applicable by the Post Office.

Advantages of using the Post Office RD Calculator
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Using the Post Office RD Calculator offers numerous benefits that contribute to efficient financial planning. Let's delve into the advantages of employing this calculator for your savings goals.

A real-life example of Post Office RD
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Let's consider a young investor named Neha, who is in her mid-20s and has a steady income. She wants to create a diverse financial portfolio, and one option she is exploring is the Post Office Recurring Deposit (RD) scheme. Neha decides to invest a portion of her savings in a Post Office RD for the following reasons.

  1. Assured Returns: Post Office RDs offer fixed interest rates that are revised quarterly by the government. Consider the interest rate as 5.8% per annum. Neha can rely on the assured returns, providing stability to her investment.

  2. Affordable Investment: Post Office RDs have a minimum deposit requirement of Rs. 10, making it an accessible option even for individuals with a modest income. Neha can deposit a fixed amount each month and accumulate wealth over time.

  3. Regular Savings Discipline: Investing in a Post Office RD helps Neha cultivate a disciplined savings habit. With automatic deductions from her bank account each month, she doesn't have to worry about missing out on saving and can build a corpus systematically.

  4. Tenure and Returns: Post Office RDs have a tenure of 5 years. Let's say Neha decides to invest Rs. 1,000 per month. At the end of 5 years, her total investment would be Rs. 60,000. With an interest rate of 5.8% per annum, she would earn approximately Rs. 11,572 as interest, resulting in a total maturity amount of Rs. 71,572.

  5. Tax Benefits: The interest earned from Post Office RDs is taxable, but there is no Tax Deducted at Source (TDS) on the interest income. Neha can include the interest earned in her annual income and pay taxes accordingly. She can also claim deductions under Section 80C of the Income Tax Act for the amount invested, up to a limit of Rs. 1.5 lakh under the old tax regime.

By investing in a Post Office RD, Neha adds diversity to her financial portfolio. While she may have other investments, such as mutual funds or stocks, the Post Office RD provides her with a low-risk, government-backed instrument with stable returns.

How to get the Post Office RD account?
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Opening a Post Office RD account is a simple process. Follow the steps below to open an account.

  1. Visit the nearest Post Office: Go to your nearest Post Office branch to open a Post Office RD account.

  2. Fill out the application form: Complete the application form for the Post Office RD account and submit it along with your KYC (Know Your Customer) documents.

  3. Deposit the monthly amount: Deposit the desired amount you wish to save each month into the Post Office RD account.

  4. Obtain the passbook: The passbook for your Post Office RD account contains details of interest earned, your monthly deposits, and maturity value.

By following these steps, you can easily open a Post Office RD account and start saving towards your financial goals.

Check out: RD Calculator

Frequently asked questions
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Here are some common questions about the Post Office RD calculator.


Can I rely on the maturity amount calculated by the Post Office RD calculator?

The maturity amount calculated by this calculator is a reliable estimate based on the inputs provided. However, it's important to remember that unforeseen circumstances or changes in interest rates can affect the final maturity amount. The calculator provides a good indication of the approximate returns but should not be considered as a guarantee.

Does the Post Office RD calculator consider compounding of interest?

Yes, the calculator takes into account the compounding of interest. The interest is typically compounded on a quarterly basis, which means it is added to the principal amount, and subsequent interest calculations are based on the new total.

Can I calculate the interest earned on my existing Post Office RD using the calculator?

Yes, the calculator can be used to calculate the interest earned on your existing RD investments. Simply input the details of your current RD, such as the monthly deposit amount, remaining tenure, and the applicable interest rate. The calculator will provide the interest earned and the updated maturity amount.

Is the Post Office RD calculator applicable for all Post Office RD schemes?

This calculator is designed specifically for the Post Office RD scheme offered by the Indian Post Office. It may not be applicable for other recurring deposit schemes offered by banks or financial institutions.

Is the Post Office RD calculator accurate?

Yes, it is designed to provide accurate calculations based on the inputs provided. However, it's important to note that the calculated values are approximate and may vary slightly from the actual maturity amount due to factors like compounding frequency and any changes in the interest rate during the tenure.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.