Saving on a regular basis is one of the most feasible methods of saving for a financially secure future. The Post Office Recurring Deposit (RD) scheme is the simplest yet most credible method. But how do you know how much you will earn by the end of your chosen tenure? This is where the Post Office RD Calculator comes in handy. Be it a deposit of ₹500 , ₹1000 or, ₹2000 ₹3000 or ₹5000 (or more) per month, our calculator helps you calculate your maturity amount and total returns smoothly.
What is a Post Office Recurring Deposit (RD)?
Post Office RD is a scheme of monthly savings in which you can save monthly a fixed sum with the post office and earn an interest on it every quarter, compounded. This is quite a good scheme for those who like disciplined savings for a pre-determined period of time. The minimum instalment can be as low as Rs 100 a month, and there are no upper limits. The rate of interest is at a prevailing rate of 5.8% to 6.7%, which ensures a steady return over a long period of time.
Post Office RD Explained: How Does It Work?
A Post Office Recurring Deposit (RD) is a savings plan where you deposit a fixed amount monthly, starting from ₹500, for a specific tenure, typically ranging from 5 to 10 years. It’s a safe and reliable way to build your savings with government backing.
Here’s how the scheme operates:
Opening an Account: You can open an RD account individually, jointly with up to three adults, or on behalf of a minor above 10 years. The scheme also allows multiple RD accounts in the same name.
Monthly Deposits: The minimum deposit is ₹100, with increments in multiples of ₹10. Deposits must be made monthly, either before the 15th if the account is opened early in the month, or by the last working day if opened after the 16th.
Interest and Compounding: Interest is compounded quarterly, meaning your savings grow faster over time. If you miss up to four payments, you can extend the maturity period accordingly; otherwise, the account may be discontinued, and penalties apply.
Premature Closure and Loan Facility: Accounts can be closed after three years with interest payable at the Post Office Savings Account rate. You can also take a loan up to 50% of your RD balance after one year.
How Does One Earns Interest using Post Office Recurring Deposit Scheme
Select Your Monthly Deposit: Choose an amount, like ₹500 or ₹3,000 per month. The amount stays the same throughout the tenure.
Choose Your Tenure: Decide on a term of 5 to 10 years. The longer you save, the more interest you earn.
Regular Deposits: Deposit the chosen amount every month manually or via auto-debit from your savings account.
Interest Compounded Quarterly: Interest is calculated and compounded quarterly, allowing your money to grow faster.
Receive Maturity Amount: At the end of the tenure, you receive the total maturity amount, including both principal and interest earned.
A Post Office RD offers guaranteed returns, disciplined savings, and the benefit of compounded interest, making it a solid choice for anyone looking to save steadily over time.
Using a Post Office RD Calculator
Every investor needs have expectations from the investments. Unlike other aggressive investment options Like Mutual Funds, Share market etc., you can predict the Maturity amount using a calculator. A post office RD Calculator gives you complete details of expected maturity amount based on the latest interest rates. That’s why, it is a great idea to use a reliable Post Office RD calculator that could exactly predict how much you can expect after investing in RD for X amount of years for investing Y Amount per month.
How does Post Office RD Calculator work?
You can calculate the amount that will finally come to you at the end of the tenure you have picked using the Post Office RD Calculator. It works something like this:
👉 Deposits per Month: Enter the amount you want to contribute each month. For instance, if you want to deposit ₹3,000 monthly, enter the amount into the calculator.
👉 Choose Your Term: Determine the period of time you want to keep depositing for, ranging from 5 years as the minimum term to up to 10 years.
👉 Enter Interest Rate: Assume the current rate of interest, as offered by the Post Office at quarterly compounding.
👉 Calculate: Click on “Calculate,” and the RD calculator will instantly display to you your total maturity amount and interest earned for the period.
Using the calculator, you can understand how much you can accumulate over time with different monthly deposits, such as ₹ 500, ₹ 3,000, or ₹ 10,000.
Calculating Post Office Recurring Deposits Returns : Examples
The figure below gives a rough estimate of what you can earn while making different monthly deposits:
For ₹500 per month: Invest ₹500 every month for 5 years at 5.8% and get a maturity amount of ₹34,968. That’s an additional ₹4,968 in interest!
For monthly ₹3,000: Think to save just ₹3,000 every month for 10 years? At an interest rate of 6.7%, your total maturity amount may grow to around ₹4,84,560 and earn you a cool ₹1,44,560 as interest!
These examples clearly illustrate how tiny periodic deposits can, by compounding, swell the accumulation into something large. The interest rate plays a vital role, so that exact amount depends on the current applicable interest rate.
Post Office RD Latest Applicable Interest Rate November 2024
As on November 2024, the applicable rate of interest under Post of Recurring Deposit scheme is 6.7%. If this rate changes, we will be first to notify you and update the calculator.
For More information on current Post office RD Interest rate, you can refer to the India post website or the National Savings Institute Portal (Find Links in the Important Links section)
Post Office RD Calculator for Monthly Amounts
Post Office RD Calculator
Invested Amount: ₹30,000
Estimated Returns: ₹6,890
Total Value: ₹36,890
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Why to Use the Post Office RD Maturity Amount Calculator in 2024?
This post office RD calculator is your friend in financial planning. Here is why you would like to use it:
✅ Immediate results: Your possible earnings can be computed within seconds, hence you do not have to hassle with any arithmetical problems or start manual calculations.
✅ Flexible Planning: Compare the different deposit amounts, for example, ₹ 500 or ₹ 3,000 per month, over different tenures to see what works best for you.
✅ High-Quality Forecasting: You will have a good estimate of what you will have at the end of your tenure, thus able to set realistic financial goals.
This calculator makes it simple and clear, whether you are saving your first time or diversifying your investments.