The Post Office Recurring Deposit (RD), officially the National Savings Recurring Deposit Account, is for people who want to save a small fixed amount every month. An account opens with ₹100 a month, and the term is 5 years. For the October–December 2026 quarter, the interest rate is 6.7% a year, compounded quarterly. The Government of India fixes this rate every quarter, so it can change in the next quarter.
Interest Rate and Term
India Post’s official savings schemes page lists the RD interest rate as 6.7% a year (quarterly compounded). The Finance Ministry’s order of 30 September 2026 kept small-savings rates for October–December 2026 unchanged from the previous quarter. The account matures after 5 years, and under the rules it can be extended for another 5 years. Note that the rate in force when the account is opened is what matters; if rates change in later quarters, the account’s terms are governed by the scheme rules.
Who Can Open an Account, and How
Any adult resident citizen of India can open an RD account. A minor above the age of 10 can also open and operate an account in their own name. The account can be opened at any post office, and India Post net banking also allows opening an RD account and making deposits. The minimum deposit is ₹100 a month, and after that any amount in multiples of ₹10 can be deposited.
Deposits, Loan and Maturity
A fixed amount must be deposited every month. After 12 instalments have been paid and the account has completed 1 year, the account holder can take a loan of up to 50% of the deposited amount. On maturity after 5 years, the deposits are paid back with interest. If the account is closed before maturity, the interest is calculated under the rules that apply — ask the post office for the rules before closing early. The interest earned is taxable, so ask a tax adviser about the tax treatment.
Who Is It Right For
The RD suits people who want to save a fixed amount every month but cannot deposit a large lump sum at once. Starting at ₹100 a month, it is made for small earners, parents saving for their children and anyone building a regular savings habit. It is a Government-backed savings scheme, available at any post office in the country.
Frequently Asked Questions
Q1: What is the current interest rate on the Post Office RD?
A: 6.7% a year, compounded quarterly, for October–December 2026. Rates are revised every quarter, so check the latest rate on India Post before opening an account.
Q2: How much money is needed to start an RD account?
A: A minimum of ₹100 a month, and after that any amount in multiples of ₹10.
Q3: What is the term of the RD?
A: 5 years. Under the rules it can be extended for another 5 years.
Q4: Can I take a loan against my RD?
A: Yes — after 12 instalments and 1 year from opening the account, a loan of up to 50% of the deposited amount can be taken.
Useful links
- India Post savings schemes: https://www.indiapost.gov.in/banking-services/savings
- National Savings Recurring Deposit on MyScheme: https://www.myscheme.gov.in/schemes/nsrdard
- List of all 726 Central Government schemes: https://www.viksitharyana.com/english/kendra-sarkar-ki-yojnayen-2/
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