Post Office Recurring Deposit (RD) Scheme 2025 is a popular savings scheme provided by the Indian Postal Department. The scheme is an attractive investment option for regular income people who want to deposit their monthly savings in a safe and profitable way. In this scheme, investors deposit a certain amount every month, which earns interest for a period of 5 years.
The main feature of the Post Office RD Scheme 2025 is its high interest rate, which is currently 6.7% per year. This rate is compounded on a quarterly basis, which gives investors better returns on their money. In addition, the scheme is flexible and can be started with a monthly installment of at least ₹ 100, which also makes it suitable for small saving.
What is the Post Office Recurring Deposit Scheme 2025?
Post Office Recurring Deposit (RD) Scheme 2025 is a government savings scheme operated by the Indian Postal Department. This scheme provides people an opportunity to save small amount regularly and get good returns on their money. The RD account is opened for a period of 5 years, in which investors deposit a fixed amount every month.
The main features of the post office rd scheme 2025
| Speciality | Description |
| Minimum deposit | ₹ 100 per month |
| Maximum deposit | No upper limit |
| Interest rate | 6.7% per year (quarterly compound) |
| Duration | 5 years |
| Account type | Single or joint (maximum 3 adults) |
| Nomination facility | Available |
| loan facility | Up to 50% of deposit amount |
| Premature closure | Permission after 3 years |
| tax benefits | Not deducted under Section 80C |
Post Office RD Account 2025 Benefits
- High interest rate: Currently attractive interest rate of 6.7%.
- Regular savings habit: Monthly deposit develops good saving habit.
- Flexible deposit amount: Any amount can be deposited by starting from ₹ 100.
- Government Guarantee: Completely safe investment.
- Easy account opening: An account can be easily opened in any post office.
- Enrollment facility: Easy claim procedure in the event of the account holder’s death.
- Loan facility: Up to 50% of the deposit amount can be taken.
- Account transfer: easily transfer from one post office to another.
Eligibility criteria for recurring deposit
- Age: Any adult or a minor over 10 years of age.
- Nationality: Indian citizen.
- Account type: single or joint (maximum 3 adults).
- Minor: Can be opened by parents or legal parents.
Documents required for Post Office RD Plan 2025
- Identification Proof (Aadhaar Card, Passport, PAN Card)
- Address proof (Aadhar Card, Electricity Bill, Ration Card)
- Recent passport size photo
- Nomination form (if enrollment is to be made)
How to open RD account?
- Go to the nearest post office.
- Fill the RD account opening form.
- Submit the required documents.
- Submit the first installment (minimum ₹ 100).
- Get a passbook.
Interest calculation and maturity amount
Interest in post office RD is calculated on quarterly compound basis. For example, if you deposit ₹ 1,000 per month for 5 years, your maturity amount will be around ₹ 69,920, including an interest of ₹ 9,920.
Default and Penalty
If you fail to deposit an installment of a month, then you have to pay a fine of ₹ 1 per ₹ 100. The account will become inactive after 4 consecutive defaults, but it can be reactivated within 2 months.
Premature clearance
The RD account can be closed after completion of 3 years. However, the interest rate will be cut on premature withdrawal.
Tax implications
The interest received from the post office RD is subject to income tax and will be added to your total income. This scheme is not eligible for tax deduction under Section 80C.
RD vs other investment options
- Fixed Deposit: RD has regular deposit facility, while FD has a lump sum amount deposited.
- Savings Account: RD provides high interest rates.
- Mutual Fund: RD is a low risk and guaranteed return option.
Benefits and Damage of Post Office RD Scheme 2025
Benefits:
- Safe and guaranteed returns
- Regular savings habit
- Flexible deposit
- Official guarantee
Loss:
- Comparatively low returns
- Long lock-in period
- No tax profit
conclusion
Post Office Recurring Deposit Scheme 2025 is an excellent option for those who want to save small amount regularly and are looking for a safe investment. The scheme is particularly suitable for low risk -taking investors and early savings. However, investors seeking high returns should also consider other options.
Disclaimer
This article is only for informative purposes. Post Office Recurring Deposit Scheme 2025 is a real and government -run scheme. However, always consult your financial advisor before investment and decide on the basis of your personal financial goals and risk tolerance. Interest rates and rules can change from time to time, so contact your local post office for the latest information before investing.
