Post Office RD Interest Rates

Learn more on Post Office RD interest rates in 2024.
Post Office RD interest rates
4 mins
20 March 2024

Post Office Recurring Deposit (RD) scheme is offered by the Indian Postal Service. It is a savings scheme that allows individuals to invest small amounts of money regularly and earn fixed interest rates on their investments. Investors can open a Post Office RD account with a minimum monthly deposit of just Rs. 100. The scheme offers a flexible tenure of 5 years, along with a fixed interest rate and several other benefits such as loan availability, nomination facility.

Similarly, fixed deposits offer a safe and reliable way to grow your savings. Like RDs, they offer guaranteed returns, making them an ideal choice for those who prioritise safety and stability.

Post Office RD interest rates 2024

Interest Rate


Minimum deposit

Maximum deposit

6.70% p.a. (Compounded quarterly)

5 Years

Rs. 100 per month

No maximum limit

Features of Post Office RD scheme

  1. Investors can open an RD account with a minimal monthly deposit of just Rs. 100, and there is no upper limit. Deposits can be made through cash or cheque.
  2. When the Post office RD is opened under the name of a minor, it can be jointly operated by two individuals. For those above 18 years old, the account can be managed by the primary applicant either individually or jointly.
  3. The RD scheme offers a fixed interest and interest is compounded quarterly.
  4. Applicants have the option to designate a nominee who receive the payout in the case of their demise.
  5. Account holders have the option of transferring funds from their RD to their savings account.
  6. Individuals have the choice to opt for a rebate on deposits made in advance, with the facility limited to 6 installments only.
  7. The Post Office RD permits applicants to withdraw funds after 3 years from the date of account opening. This can be done by submitting the necessary application form to the relevant post office.
  8. After 12 installments if the account remains active for a year. The account holder becomes eligible for a loan up to 50% of the account's credit balance. The loan can be repaid either in full at once or through equal monthly payments, with the interest rate calculated as 2% plus the applicable RD interest rate.

Pro tip

Enjoy higher interest rate with Bajaj Finance Digital FD. Unlock returns of up to 8.65% p.a. by investing for 42 months via website and app.

Bajaj Finance Fixed deposit rates vs Post Office RD Interest Rates 2024


Bajaj Finance Fixed Deposit

Post Office Recurring Deposit

Interest Rate

Up to



6.7​ % p.a. (as of 01.01.2024)

Minimum Deposit

Rs. 15,000

Rs. 100 per month

Maximum Deposit

Rs. 5 crore

No upper limit


12– 60 months

5 years

Post Office RD loan facility

Once you have deposited 12 installments and your account remain active for a year and not discontinued, you can avail a loan of up to 50% of the balance amount in your Post Office Recurring Deposit account. You can repay the loan amount in full or in equal monthly installments. The loan interest rate will be calculated as 2% of the RD interest rate that applies to the RD account. The interest will be calculated from the withdrawal date to the repayment date. If you fail to repay the loan amount by the maturity date, the loan amount plus interest will be deducted from your RD account’s maturity value.

For quick and easy access to funds you can also consider Bajaj Finance Loan against FD. This allows you to borrow against your existing fixed deposit while still earning interest on the entire amount.

Documents required to open a Post Office RD account

  • A post office account-opening form.
  • Two passport-sized photographs.
  • Address and identity proof such as Aadhaar, passport, PAN card, driving license, voter’s identity card, or ration card. You can also submit a declaration in Form 60 or 61 as per the Income Tax Act, 1961.
  • Take your original identity proof for verification, at the time of opening the account.
  • To complete the formalities, you will need to select a nominee and obtain the signature of a witness.

How does taxation apply to a Post Office RD account?

Post office recurring deposit account is eligible for tax exemption under Section 80C of the Income Tax Act. Individuals can claim up to Rs. 1.5 Lakh per annum as tax exemption under this section.

However, the interest generated through the post office RD scheme is taxable as per the income tax slab rate. Additionally, if the interest earned exceeds Rs. 10,000, a TDS deduction would be applicable. The TDS rate for individuals with an active PAN is 10%, while those who don’t have a PAN for them TDS rate will be 20%.


The Post Office's Recurring Deposit scheme is an attractive investment option for individuals seeking a fixed interest rate and flexible deposit options. With a minimum deposit requirement of just Rs. 100 per month the scheme also offers rebate facility, and loan availability. However, individuals should also note interest generated through the scheme is taxable as per the income tax slab rate. Overall, the Post Office RD scheme provides a reliable and accessible investment opportunity for investors.

Frequently asked questions

What is the Digital FD offered by Bajaj Finance?

Bajaj Finance has launched a new FD variant called "Bajaj Finance Digital FD" for a period of 42 months. Bajaj Finance is providing one of the highest interest rates of up to 8.65% p.a. for senior citizens and for the customers below the age of 60 they are providing up to 8.40% p.a. The Digital FD can be opened and managed only through the Bajaj Finserv website or app.

Is Post Office RD a good and safe investment?

Post office RD is a safe investment option as it backed by government of India and offers guaranteed returns.

Is the interest income taxable?

Yes, the interest income generated through the post office RD scheme is taxable as per the individual income tax slab rate.

What is the tenure of a Post Office RD?

The tenure of a post office RD is 5 years.

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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
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.