When it comes to safe investment in the country, small savings schemes of post office still remain the first choice of people. One of these is the Post Office Recurring Deposit (RD) Scheme, which is considered a reliable option for those who save regularly. In this government-backed scheme, investors get capital security along with assured returns. For the quarter April-June 2026, Post Office RD is offering 6.7% annual interest, which is compounded on quarterly basis.
What is Post Office RD Scheme?
Post Office RD is a savings scheme in which investors deposit a fixed amount every month. The duration of the scheme is 5 years and on maturity, the benefit of interest is available along with the deposited amount. This scheme is especially useful for those who want to create a big fund for the future by saving small amounts.
Interest rates and investment terms
At present 6.7% annual interest is being given on Post Office RD. Investment in this scheme can be started with a minimum of Rs 100 per month and after that the amount can be deposited in multiples of Rs 10. There is no maximum limit for investment. The account can be opened singly or jointly.
How much return will you get?
According to the current interest rate, if a person deposits Rs 1,000 every month, the total investment in 5 years will be Rs 60,000 and on maturity one can get approximately Rs 71,365. Whereas on a monthly investment of Rs 5,000, a fund of about Rs 3.56 lakh can be generated and on a monthly investment of Rs 10,000, a fund of about Rs 7.13 lakh can be generated.
tax related rules
Many people believe that investing in Post Office RD gets exemption under Section 80C of the Income Tax Act, but it is not so. There is no 80C tax benefit on the amount deposited in this scheme. Also, the interest received from RD is fully taxable and has to be shown under income from other sources in the income tax return.
Beneficial for which investors?
Post Office RD is a better option for those who want to avoid risk and develop the habit of regular savings. Employees, housewives, small businessmen and young investors can take advantage of this scheme. It is considered a safe and stable return scheme for investors who stay away from market volatility.
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