Post Office RD Calculator 2024

Post Office RD calculator helps you estimating the interest and maturity amount when you invest in Indian Post Office recurring deposit schemes. Input monthly deposit amount, latest Post Office RD interest rate and investment tenure to calculate and plan your savings.

Check: Post Office RD Interest Rates 2024

Post Office RD CalculatorInputs
Total Investment₹1,80,000
Tenure36 months
Interest Rate6.70% p.a.
Interest Earned₹19,122
Maturity Value₹1,99,122

What is a Post Office RD?

Post Office recurring deposit is one of the post office savings schemes. It allows investors to invest in small amounts regularly. The minimum investment tenure of a PORD is five years. The interest in PORD is compounded quarterly. Calculating the interest in PORD manually can be time taking and difficult. Hence one can use a Post Office RD calculator to estimate their potential returns.

Below are the features of an RD:

  • It is a post office savings scheme.
  • The minimum amount of investment is INR 10 and in multiples of INR 5.
  • There is no cap on the maximum amount of investment.
  • The investment tenure is five years.
  • Interest is compounded quarterly.
  • The account can be operated solely and jointly.
  • Nomination facility is available.
  • The account is easily transferable from one post office to another.
  • One can get a rebate on paying six months of instalments in advance.
  • Closure of account prematurely is possible after 3 years.
  • One can withdraw 50% of the amount after the completion of 1 year.
  • Missed deposits will attract a default fee.
  • One can extend a post office recurring deposit account for five years on a year to year basis.

Post Office Bank Calculators

What is Post Office RD Calculator?

Post Office RD calculator is an online tool that helps in estimating the maturity amount and interest amount of an RD investment. By calculating the returns from a Post Office RD investment, one can make informed financial decisions.

Inputs in Post Office RD Calculator

A Post Office RD calculator will have the following inputs:

  • Monthly Deposit Amount: It is the investment amount one wishes to invest in post office RD accounts. The minimum amount of investment for Post Office RD is INR 10 and in multiples of INR 5.
  • RD Term: This is the investment tenure of the Post Office RD scheme. A PORD has a fixed tenure of 5 years (60 months).
  • Recurring Deposit Interest Rate: It is the rate of return that the recurring deposit schemes offer to the account holder. The current rate of return is 6.70% p.a..

Upon entering the above inputs, the calculator will give the following outputs:

  • Total Investment: It is the total amount invested by the account holder over a period of 60 months.
  • Wealth Gained: It is the interest income the investor has earned on the investment.
  • Total Corpus Created: It is the total of total investment and wealth gained. It is the future value of all the investments done during the term of 5 years.

How to Use a Post Office RD Calculator?

One can use the Post Office RD calculator online for free. The calculator is a simple tool and quite easy to use. All that one has to do is enter details such as monthly investment amount and current RD interest rate. This helps in determining the maturity value. The calculator automatically computes the wealth created from an investment. Furthermore, the RD calculator uses the future value formula to determine the maturity value. The following example may help in understanding the Post Office RD calculator better.


Ms Sana plans to invest INR 15,000 per month in a recurring deposit scheme for ten years. The RD rate is 6.70% p.a.. The maturity value of the investment for Ms Sana using the Post Office RD calculator is:

Inputs for the Post Office RD calculator:

  • Monthly investment amount: INR 15,000
  • Deposit Interest Rate: 6.70%
  • RD Term: 10 years

The following are the outputs from the calculator:

  1. Total Investment: INR 18,00,000
  2. Wealth Gained: INR 7,62,819
  3. Total Corpus Created: INR 25,62,819

The investment of INR 18,00,000 made today at 6.70% interest per annum would be INR 25,62,819 in ten years. The interest income for Ms Sana will be INR 7,62,819.

Post Office RD Interest for 5 Year with Monthly Contribution

Monthly InvestmentInterest EarnedTotal Corpus
Rs. 500Rs. 5,683Rs. 35,683
Rs. 1000Rs. 11,366Rs. 71,366
Rs. 2000Rs. 22,732Rs. 1,42,732
Rs. 3000Rs. 34,097Rs. 2,14,097
Rs. 5000Rs. 56,829Rs. 3,56,829
Rs. 10,000Rs. 1,13,658Rs. 7,13,658

Benefits of Using a Post Office Recurring Deposit Calculator

The following are the benefits of using a Post Office Recurring Deposit Calculator:

  • Free to use: The calculator is available online and is free to use by anyone. One can use it multiple times without paying a single rupee for it.
  • Simple and easy to use: The PORD calculator is a simple tool. One can easily enter the required details to get the output.
  • Accurate results: The calculator gives results that are quite accurate, and the chance of error is close to zero. One can easily rely on the results of the calculator.
  • Saves time: Calculating the interest on an RD investment can be taxing and time taking. Using the PORD calculator to do the same, saves the time of the investor.
  • Comparison: One can use the calculator to compare multiple banks RD with the Post Office RD and select the one that gives the highest return.
  • Future planning: The calculator enables investors to plan their investments more efficiently. By knowing the potential returns from an investment, will help investors plan their goals better.

Factors Affecting PO interest rates

POFD interest rates depend on the following factors:

  • RBI policies: The Cash Reserve Ratio (CRR) and repo rate affect the interest rate of all banking instruments, including recurring deposits RD.
  • State of economy: In a growing economy, people take more credit. To meet the credit demand and increase the funds, banks often increase interest rates of recurring deposits RD. During a recession, RBI induces liquidity into the market by releasing funds. With high liquidity and low credit demand, banks RD interest rates are reduced.
  • Inflation: RD rates tend to be higher when the inflation rate in the economy is rising.

Frequently Asked Questions

What is post office RD interest for Rs. 1000 per month in 5 year?

The current RD interest rate in post office recurring deposit scheme is at 6.70% p.a. for 5 year. When Rs. 1000 invested every month for 5 year at 6.70% p.a, the total interest earned will be Rs. 11,366 and total corpus will be Rs. 71,366. If you consider using inflation calculator to check the future value of your money.

What are the tax benefits of Post Office Recurring Deposits?

Investment in Post Office Recurring Deposit (PORD) qualifies for tax deduction up to INR 1,50,000 under Section 80C of the Income Tax Act. The interest income doesn’t attract any TDS. However, income earned will be taxable in the hands of investors as per their respective income tax slabs.

What are the Types of Post Office RD accounts?

On the basis of the investment tenure, following are the types of recurring deposits:
Short Term RD
The recurring deposit tenure ranges between six months to three years. Therefore, short term recurring deposit best suits investors looking to develop saving habits.
Medium Term RD
Investors not willing to invest for a long term, medium term recurring deposit best suits them. Medium-term RD provides the right balance of investment duration and flexibility to invest to its investors. The tenure for these deposits ranges between three years to seven years.
Long Term RD
Long term recurring deposits have a tenure ranging between seven years to ten years. The scheme gives investors the flexibility of making monthly deposits. Therefore, the scheme best suits investors who do not have a lump sum amount to invest in a fixed deposit.

Is premature withdrawal allowed in RD accounts?

One can withdraw the investment in RD amount only at the time of maturity. In case there is an emergency, one can break their RD investment. The Post Office charges INR 1 for every INR 100 investment. Banks usually deduct 1-2% from the interest accrued. Once the amount has been withdrawn, the account will be considered as closed. There is a minimum lock-in period of 3 months. If the premature withdrawal is requested before this period, then the investor will not earn any interest and will only get the principal amount back.

Is partial withdrawal of RD allowed by Indian Post Offices?

Indian Post Offices do not allow partial withdrawal of the RD account. However, most of the banks allow partial withdrawal on RD investment. Additionally, one can avail loan against their banks recurring deposit investment.Post Offices allow premature withdrawals, provided an investor has an RD account that is at least one year old. The amount withdrawn is considered as a loan and must be paid back in a lump sum to the Post Office. However, the Post Office allows premature closure of RD accounts with a penalty.
You can use Scripbox’s EMI calculator to find your monthly instalments.

What is the eligibility criteria for opening a PORD account?

Following is the eligibility criteria for opening RD accounts in India
All Indian nationals over the age of 18 can open a Post Office Recurring Deposit account.
Minors of age ten and above can open and operate the account jointly with a guardian.
Parents or guardians can open this account on behalf of a minor child.

What are the documents required to open an RD account?

While opening a recurring deposit account, the following are the list of documents required:
Account opening form (filled and duly signed)
Recent passport size photograph
KYC DocumentsIndividual & Company: PAN Card, Passport Copy, Aadhar Card, Voter’s ID, and Driving License
HUFs: HUF declaration deed, bank statement of HUF, and self-attested PAN card
Partnership Firms: Certificate of Incorporation, Partnership deed, and ID proofs of all authorized signatories.
Post Office RDs offer guaranteed returns. However, their returns are lower than debt mutual funds. Instead of Post Office RDs, investors can choose good debt funds which have higher returns at the same time have high liquidity. Additionally, the returns from debt funds are predictable making them an attractive investment option for short term investment.