Post Office Recurring Deposit Scheme

Learn about post office recurring deposit scheme to grow your savings.
Post Office Recurring Deposit Scheme
4 mins
20 December 2023

Post Office Recurring Deposit (PORD) scheme is a simple way to boost your savings. It provides a secure and reliable avenue for investors to grow their savings steadily. From features to application steps, we simplify the entire process, making it easy to understand for both beginners and experienced investors. Let us get into details of Post Office Recurring Deposit (PORD)

What is Post Office Recurring Deposit (PORD)

A Post Office Recurring Deposit (PORD) is a savings scheme offered by India Post, the government agency that provides postal services in India. With this scheme, individuals can deposit a fixed amount of money regularly, for a predetermined period. The maturity period for a Post Office RD is 5 years. The interest rates are set by the government and are compounded quarterly. At maturity, the deposited amount along with the accumulated interest is returned to the account holder. This scheme provides a systematic way for individuals to save and earn interest.

Post Office Recurring Deposit interest rates

As of December 2023, interest rate on Post Office Recurring Deposit is 6.7​ % per annum, which is compounded quarterly.

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.

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.

Maturity period of PORD

  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.

Bajaj Finance Fixed Deposit vs Post Office Recurring Deposit scheme


Bajaj Finance Fixed Deposit

Post Office Recurring Deposit Scheme

Interest Rate

Up to 8.60% p.a.

6.7% p.a. (as of December 2023)

Minimum Investment

Rs. 15,000

Rs. 100 per month

Maximum Investment

Rs. 5 crore

No maximum limit


12 months to 60 months

5 years

Premature Withdrawal



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.

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.


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.


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.