This guide explains how to open a Post Office Recurring Deposit (RD) account, the current interest rate, how it compares to a bank RD, and how to open one online using IPPB. You’ll find clear examples, eligibility details, required documents, and answers about minors and premature withdrawals.
Opening an RD at the post office is a straightforward way to build a disciplined savings habit without exposure to market risk. You commit to a fixed monthly deposit for five years, the interest rate is locked for the tenure, and you receive a guaranteed lump sum at maturity. There’s no demat account or market tracking — just a passbook and scheduled deposits.
What this guide covers: eligibility, documents, how to fill the RD form at the post office, how to open an RD online via IPPB, a comparison with bank RDs, loan options against RD balances, and realistic examples to illustrate potential returns.
What is a Post Office RD Account?
A Post Office Recurring Deposit, officially called the National Savings Recurring Deposit Account, is a five-year savings scheme offered by India Post. You deposit a fixed amount each month and the balance earns interest compounded quarterly. At maturity you receive the total deposits plus the accumulated interest as a single payout.
Post Office RD Account Interest Rate in 2026
Quick stat: The post office RD interest rate for the current quarter is 6.7% per annum, compounded quarterly. Once you open an account, that rate is fixed for the full five-year tenure.
Below is a concise comparison between a Post Office RD and a typical bank RD:
| Feature | Post Office RD | Typical Bank RD |
|---|---|---|
| Interest rate | 6.7% p.a., fixed for tenure | 6.25% to 7.5% p.a., varies by bank |
| Tenure | 5 years, fixed | 6 months to 10 years, flexible |
| Minimum deposit | ₹100 a month | Usually ₹500 to ₹1,000 a month |
| Premature closure | Allowed after 3 years at a lower rate | Usually allowed anytime, with a penalty |
| Backing | Government of India | Bank or NBFC, deposit insurance up to specified limits |
Banks typically offer more flexibility in tenure and deposit amounts, while the post office offers simplicity, government backing, and a rate that does not change once your account is opened — useful if you prefer a hands-off approach to savings.
Who Can Open One?
Eligibility is broad. Any resident Indian adult may open a Post Office RD account alone or jointly with two or three adults. A guardian can open and operate an RD for a minor; minors aged 10 and above can operate their own RD. Non-resident Indians (NRIs) cannot open a fresh post office RD account.
Documents You’ll Need
- RD account opening form (Form SB-3 (A))
- One identity proof: Aadhaar, PAN, voter ID, or driving licence
- One address proof: Aadhaar, utility bill, or passport
- Two passport-size photographs
- First month’s deposit (minimum ₹100)
- Nominee details, if you want to add a nominee
If you already hold a post office savings account and your KYC is complete, the RD account opening process is faster.
How to Open an RD Account in Post Office: Step-by-Step
Visit any post office that offers savings bank services — it need not be one linked to your address. Request Form SB-3 (A) at the counter.
How to Fill the RD Form in Post Office
Fill in your personal details, the monthly instalment amount, and the tenure (standard is five years). Attach self-attested copies of your identity and address proofs, include two photographs, and carry originals for verification. Submit the form with your first deposit (minimum ₹100, further deposits in multiples of ₹10). The post office issues a passbook that records your account number, deposit amounts, and due dates — keep it safe.
Post Office RD Account Online: IPPB and Net Banking
If you already have a post office savings account with net banking enabled, you can open an RD online via the India Post Payments Bank (IPPB) mobile app or the Department of Posts net banking portal. Once set up, future deposits can also be managed digitally without branch visits.
Loan Against Your RD
After one year and twelve instalments, you become eligible for a loan against your RD balance, typically up to 50% of the balance. The interest rate on such loans is usually around two percentage points above the RD rate. A loan against your RD is secured by your own savings, often cheaper and faster than an unsecured personal loan, and does not affect your maturity payout. Premature closure is permitted after three years, but yields a reduced interest rate.
Note: Interest earned on the RD is fully taxable as per your income slab and contributions to the RD do not qualify for Section 80C tax deductions.
Real Examples: What You Could Earn
| Saver | Goal | Monthly Deposit | Total Deposited (5 yrs) | Approx. Maturity Value |
|---|---|---|---|---|
| Meera, schoolteacher | Sister’s wedding | ₹2,000 | ₹1,20,000 | ₹1,43,500 |
| Rohan, early-career saver | Laptop upgrade fund | ₹1,000 | ₹60,000 | ₹71,750 |
| Anita, pre-retirement | Low-risk backup savings | ₹3,000 | ₹1,80,000 | ₹2,15,250 |
These examples show how disciplined monthly savings and compound interest can grow into meaningful sums over five years without market risk or active management.
Common Mistakes and Quick Tips
Common mistakes include committing to a monthly amount you cannot sustain and missing instalments. A consistent smaller deposit is better than a larger amount that lapses. Update nominee details for joint or minor accounts, set reminders for due dates to avoid penalties, and consider linking an auto-debit from your savings account. The post office allows advance deposits and may offer a small rebate if you pay multiple instalments together.
FAQs On Post Office RD Account
1. What is the minimum deposit for a Post Office RD account?
₹100 a month, with further deposits allowed in multiples of ₹10 and no upper limit.
2. What is the current interest rate for Post Office RD in 2026?
6.7% per annum, compounded quarterly, fixed for your full tenure once the account is opened.
3. Can I open a Post Office RD account online without visiting a branch?
Yes, if you already have a post office savings account with net banking enabled, you can use the IPPB app or the Department of Posts net banking portal.
4. Can a minor open a Post Office RD account?
Yes. A guardian can open and operate an RD for a minor, and minors aged 10 or older can operate the account themselves.
5. What documents are required to open a Post Office RD account?
One identity proof, one address proof, two photographs, and the first month’s deposit.
6. What happens if I miss a monthly instalment?
A small default fee applies; multiple consecutive misses can lead to account discontinuation, though accounts are usually revivable within a limited period.
7. Can I withdraw my Post Office RD before maturity?
Premature closure is permitted after three years, but the interest rate applied will be lower than the full-tenure rate.
8. Is the interest earned on Post Office RD taxable?
Yes. Interest is fully taxable as per your income slab, and RD deposits do not qualify for Section 80C deduction.