Post Office Recurring Deposit (RD)

The Post Office Recurring Deposit (PORD) scheme offers a secure and disciplined way to grow your savings through regular monthly deposits. As part of the National Savings Recurring Deposit options, it suits both new and seasoned investors seeking steady, guaranteed returns.

Post Office Recurring Deposit interest rates

As of June 2025, interest rate on Post Office Recurring Deposit is 6.7​ % per annum, which is compounded quarterly.

How to open Post Office Recurring Deposit Account (PORD)

1. Online process:

The India Post Payments Bank (IPPB) app is launched to make post office online banking easy. You can open a bank account on the IPPB app & manage your Recurring Deposit (RD) account. Here are the steps to open a RD account online:

1. Install the IPPB app on your device.

2. Provide necessary details, such as mobile number and PAN number. Verify your mobile number with OTP and open a post office savings account.

3. Enter your Aadhaar card number and verify it via OTP.

4. Fill out the online application form, covering personal information, communication address, account details, and nominee details.

5. After submitting the form, your post office savings account will be activated.

6. You will receive you customer ID and account number.

7. Use your customer ID, date of birth and account number to generate a login PIN.

8. Go to "Send Money" option under the menu tab. Click on "DOP Products" to deposit money.

2. Offline process:

1. Visit your nearest post office.

2. Ask for an RD application form.

3. Fill in all the details, submit the required documents.

4. Submit the RD form along with the initial deposit amount to open your PORD account.

Who can open a post office Recurring Deposit (RD) account?

To open a Recurring Deposit (RD) account with the Post Office, the following individuals are eligible:

1. Single Adult: Any individual adult can open an RD account in their own name.

2. Joint Account: A joint RD account can be opened by up to three adults. It can be of two types:

   • Joint A: Any one of the account holders can operate the account.

   • Joint B: All account holders must jointly operate the account.

3. Guardian for a Minor: A guardian is permitted to open and manage an RD account on behalf of a minor.

4. Guardian for a Person of Unsound Mind: An RD account can also be opened by a guardian for someone who is mentally incapacitated.

5. Minor Aged 10 Years and Above: A minor who is at least 10 years old can independently open and operate an RD account in their name.

Maturity period of Post Office Recurring Deposit scheme

1. The RD account has a tenure of 5 years from the opening date.

2. The tenure can be extended for 5 more years by submitting an application at the respective Post Office. The interest rate during the extension will be the same as the rate at which the account was initially opened.

3. The extended account can be closed at any point during the extension period.

4. The RD account can be retained for up to 5 years from the maturity date without further deposits.

What will happen if you default on your PORD Account?

1. For each month of default, a fee of Rs. 1 is charged for Rs. 100 (proportional for other denominations).

2. In case of continuous monthly defaults in an RD account, the depositor must first pay the defaulted monthly deposit with a default fee before paying the current month's deposit.

3. After 4 regular defaults, the account will be discontinued, and can be revived within two months. If not, no further deposit is allowed and the account remains discontinued.

4. If there are up to 4 defaults in monthly deposit timeline, the account holder can extend the maturity period by the number of defaults, depositing the overdue instalments during the extended period.

Also read: Post Office Saving Schemes

Premature closure of Post Office Recurring Deposit account

1. Premature closure of the RD Account is allowed after 3 years from the date of account opening by submitting the prescribed application form at the respective Post Office.

2. If the account is closed prematurely even one day before maturity, the Post Office (PO) savings account interest rate will apply.

3. Premature closure is not allowed until the period for which the advance deposits have been made.

Repayment on the death of an Account Holder

1. In the event of the account holder's demise, the nominee/claimant can submit a claim at the relevant Post Office to receive the eligible balance of the RD account.

2. Upon approval of the claim, the nominee/legal heirs have the option to continue the RD account until maturity by submitting an application at the respective Post Office.

Also read: What is Post Office Monthly Income Scheme

Eligibility criteria of Post Office Recurring Deposit scheme

• For an individual (18 years or older).

• For joint account (up to 3 adults)

• Guardian for a minor.

• A guardian for a person with a mental disability.

• A minor aged 10 or above in their own name.

Documents required

To open a recurring deposit account with India Post, you need to provide the following documents:

1. A completed Application Form for Opening an Account.

2. KYC documents for identity and address verification.

   • Accepted identity and address proofs include a driving license, passport, voter ID, a job card issued by NREGA and signed by a State Government officer, or a letter from the National Population Register detailing your name and address.

Bajaj Finance Fixed Deposit vs Post Office Recurring Deposit scheme

Conclusion

Post Office Recurring Deposit is a simple savings scheme by India Post. Whether through online or offline methods, opening an account is easy. It is a reliable way to save money. With clear rules on defaults and premature closures, this scheme meets financial needs of people with diverse incomes, offering simplicity and flexibility.

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