India Post offers several saving schemes through post offices. Recurring deposit scheme is one of them and it is the most popular scheme provided to rural people though post offices. Many banking institutions provides RD schemes but, Post Office recurring deposit scheme is ultimate. In rural areas of India Rd scheme in Post Office became as a practice from years. Daily wage earners, pensioners, retailers and small employees are regular customers of recurring deposit scheme. Gramin Dak Sevaks playing crucial role on delivering scheme benefits to rural people.

Recurring Deposit(RD) Scheme Interest Rates

In Recurring Deposit scheme one has to deposit fixed amount monthly for a fixed period.

  • Interest rates for RD may vary from year to year. Interest is 6.7% per annum from 1.1.2024 onwards.
  • Interest is quarterly compounded. Interest at the time of account opening will be considered the same through out the scheme period.
  • For more information please visit India Post Saving Scheme

Key Points of Recurring Deposit

Everyone must know about recurring deposit while opening a RD account in Post Office. Here are the key facts of Recurring Deposit.

  • Scheme Period : Rd account period would be of 5 years. One has to maintain account for 5 years to get full closure amount.
  • Monthly Deposit : We have to deposit monthly installments of fixed amount. The fixed amount would be the amount that we have deposited while opening account. Minimum amount for opening RD account is of 100/- rs where as maximum amount has no limit.
  • Premature Closure : Premature closure of RD account is allowed only after 3 years. Before premature period no amount will be given to customer.
  • Loan : Customer can take loan against his/her RD account balance. But, while taking RD amount or at the time of closure the loan needs be cleared.
  • Account Mapping : We can transfer or map our RD account from one Post Office to other.
  • Death Claim : During account or after, if the person is deceased then his/her amount would be settled to nominee. Nomination would be taken while opening account, The same nominee will get paid by India Post if it is death claim. If the nominee also deceased then the legal heirs will get paid.


We have reached to end of the discussion on RD. Before closing the article we suggest you that while opening a Recurring Deposit account please check the interest rates of that financial year as they may vary from time to time according to the government rules and regulations.

By admin

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