Post Office Recurring Deposit (RD) Scheme is best for small investments. If you prefer low-risk investments, the Post Office RD is an excellent choice. While banks offer RD options for various periods, the Post Office RD specifically spans 5 years.

The current interest rate offered on the Post Office RD (Post Office Recurring Deposit) scheme is 6.7%. This allows for significant savings by depositing a fixed amount every month for 5 years. If you deposit Rs 2000, Rs 3000, or Rs 5000 every month, you can build substantial funds.  

Investments of Rs 2000

If you start a recurring deposit (RD) of Rs 2,000 per month for 5 years, you will invest a total of Rs 24,000 annually and Rs 1,20,000 over 5 years. With the interest rate of 6.7%, you would earn Rs 22,732 as interest. Therefore, after 5 years, you would receive a total of Rs 1,42,732, which includes your invested amount and the interest earned.

Investments of Rs 3000

If you start a recurring deposit (RD) of Rs 3,000 per month, you will invest Rs 36,000 annually and a total of Rs 1,80,000 over 5 years. Based on the current interest rate of 6.7%, you would earn approximately Rs 34,097 as interest. After maturity, you will receive a total of Rs 2,14,097, including your invested amount and the interest earned.

Investments of Rs 5000

With RD of Rs 5,000 each month, you will invest a total of Rs 3,00,000 over 5 years. According to the Post Office RD calculator, at the current interest rate of 6.7%, you would earn approximately Rs 56,830 as interest. Therefore, upon maturity, you would receive a total of Rs 3,56,830, including your invested amount and the interest earned.

Interest Rate

The Finance Ministry of the Central Government reviews the interest rates for small savings schemes every three months. On October 1, 2023, the interest rate for Post Office RD was increased from 6.5 percent to 6.7 percent. 

The interest rate you begin with on your RD determines the interest you earn over 5 years. Even if there are changes in the RD interest rate during this period, it will not affect your initial investment.