Post Office RD vs FD: Which Saving Plan Suits You Best?

Confused between investing monthly or just once? This guide simplifies the difference between Post Office Fixed Deposits (FDs) and Recurring Deposits (RDs) to help you choose the smarter way to grow your savings—safely and steadily.
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4 min
23-May-2025
Both Post Office Fixed Deposit (FD) and Recurring Deposit (RD) schemes are backed by the Government of India, ensuring stable returns and capital protection. While RD is perfect for disciplined monthly savers, FD is a better fit if you have a lump sum and prefer one-time investing. Let’s break it down to help you make the right choice.

What is a Post Office Recurring Deposit (RD)?

A Post Office RD is a 5-year savings plan where you deposit a fixed amount every month. It’s ideal for individuals looking to cultivate a habit of saving regularly. Interest is compounded quarterly and paid on maturity, offering steady capital growth over time.

Key Features of Post Office RD

  • Fixed 5-year tenure – Encourages medium-term saving goals like college fees or travel.
  • Monthly deposits starting at just Rs. 100 – Anyone can begin saving, even students and new earners.
  • Quarterly compounded interest – Grow your money faster with consistent deposits.
  • Premature withdrawal after 3 years – Offers partial liquidity during emergencies.
  • Loan facility up to 50% of balance – Fund urgent needs without breaking your investment.
  • Account transfer and nomination facility – Flexibility and succession planning in one.
Looking for better flexibility and returns on your savings?With Bajaj Finance Fixed Deposit, enjoy interest rates of up to 7.95% p.a. and flexible tenures ranging from 12 to 60 months. Open FD Account now!

Types of Post Office RD Accounts

  • Single Account RD – Perfect for solo investors building individual wealth.
  • Joint Account RD – Suitable for families or partners working toward shared goals.
  • Minor Account RD – Great for starting your child’s savings journey early.
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For ETB Customers (Logged-in) :

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R1/ R2 – Rows wise distribution of table/ fields. Reach out in case of any query

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Benefits of Post Office RD

  • Government-guaranteed returns – Ideal for risk-averse investors.
  • Low deposit threshold – Makes saving inclusive for all income groups.
  • Loan facility – Helps manage cash flow without disturbing your savings.
  • Long-term wealth creation – Best suited for planned financial goals.

Saving for your child’s future or a family goal? Bajaj Finance FD can help you!

Bajaj Finance offers FD options for minors and joint accounts, helping families save smartly together.Check FD Rates and start investing now!

Eligibility & Documents for Post Office RD

Eligibility:

  • Resident Indians (individuals, minors aged 10+, joint accounts)
Documents:

  • Aadhaar, PAN, or Voter ID for identity
  • Utility bill or ration card for address
  • 2 passport photos
  • Filled RD application form

What is a Post Office Fixed Deposit (FD)?

Post Office FDs or Time Deposits are lump sum deposit schemes with guaranteed returns over a tenure of 1 to 5 years. You invest once and earn annual interest, which is compounded and paid annually. It’s best for investors with surplus funds who want capital safety and predictable returns.

Key Features of Post Office FD

  • Tenure options from 1 to 5 years – Choose a timeline that matches your goals.
  • Minimum deposit of Rs. 1,000 – Accessible for most Indian households.
  • No upper limit – Great for large, safe investments.
  • Premature withdrawal after 6 months – Maintain liquidity if needed.
  • Automatic renewal & nomination facilities – Invest and forget, with peace of mind.

Want to grow your lump sum amount without risk?

Bajaj Finance FDs offer high interest of up to 7.95% p.a. and complete capital safety, with online booking in just a few steps. Check Eligibility now!

Component – Fixed deposit variants

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Types of Post Office FD Schemes

  • 1-Year FD – Short-term savings with assured returns.
  • 2-Year FD – Slightly higher interest for mid-term goals.
  • 3-Year FD

Frequently asked questions

Is Bajaj Finance FD safer than Post Office FD?
Both are safe. Post office FDs come with backing from the Government of India. Bajaj Finance Fixed Deposit comes with AAA ratings from CRISIL and ICRA, offering both safety and higher returns than Post Office FDs.Check rates now!

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.

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