Post Office RD Open Online: Monthly Savings Scheme Guide

Post Office Recurring Deposit (RD) is a simple monthly savings scheme where you deposit a fixed amount every month for 5 years and earn guaranteed interest. It is ideal for salaried individuals who want to build savings through small, regular deposits. This guide covers how to open RD online, interest rates, and maturity calculation.

What is Post Office Recurring Deposit?

Post Office RD is a 5-year savings scheme offered by India Post. You deposit a fixed monthly amount (minimum ₹100) and earn quarterly compounded interest. At maturity, you receive your total deposits plus accumulated interest.

Key features:

• Minimum deposit: ₹100 per month (in multiples of ₹10)
• Maximum deposit: No upper limit
• Tenure: 5 years (60 months)
• Interest rate: 6.70% per annum (Q1 2025), compounded quarterly
• Safety: Government of India guarantee

Current Post Office RD Interest Rate

Note: RD interest rate is revised quarterly by the Ministry of Finance. Check India Post for the latest rate.

Who is Eligible?

• Any Indian resident individual (single or joint)
• Minor above 10 years (in own name)
• Minor below 10 years (through guardian)
• No NRI accounts allowed
• No limit on number of RD accounts per person

Documents Required

• Aadhaar card (mandatory)
• PAN card (for deposits above ₹50,000 per year)
• Passport-size photographs (2)
• Account opening form (available at post office or online)
• Post Office Savings Account (required — open one first if you don't have)

How to Open Post Office RD Online

Method 1: Via DOP Internet/Mobile Banking

1. Log in to DOP Internet Banking or the DOP mobile app
2. Navigate to General Services → Service Request → RD Account Opening
3. Enter the monthly deposit amount (minimum ₹100)
4. Choose the deposit date (monthly auto-debit date)
5. Confirm the transaction
6. Your RD account number is generated
7. Monthly instalments are auto-debited from your post office savings account

Method 2: Via IPPB (India Post Payments Bank)

1. Download the IPPB mobile app from Play Store/App Store
2. Open an IPPB account if you don't have one (instant, Aadhaar-based)
3. Link your post office savings account
4. Navigate to DOP Products → Recurring Deposit
5. Enter the monthly amount and confirm
6. RD account is opened and linked

Method 3: Offline (at Post Office)

1. Visit your nearest post office
2. Fill the RD Account Opening Form
3. Submit with KYC documents and photographs
4. Make the first monthly deposit
5. Collect your RD passbook

Post Office RD Maturity Calculation

Example: ₹5,000 per month for 5 years at 6.70%

More examples:

These are approximate values. Actual maturity depends on the prevailing quarterly rates.

Rules and Important Points

Default on Monthly Payment

• If you miss a monthly instalment, a default fee of ₹1 per ₹100 per month is charged
• Account can be continued by paying the default fee along with missed instalments
• If default continues for more than 4 months, the account is discontinued

Premature Closure

• Before 3 years: Not allowed (except on death of account holder)
• After 3 years: Allowed, but interest is paid at Post Office Savings Account rate (4%) instead of RD rate

Extension After Maturity

• RD can be continued for another 5 years on the same terms
• Extension request must be made within the maturity month

Loan Facility

• Loan of up to 50% of the balance can be taken after completing 12 monthly deposits
• Loan must be repaid before maturity

Tax Rules for Post Office RD

Note: Post Office RD does not qualify for Section 80C benefit. Consider Post Office 5-year FD or PPF for tax-saving investments.

Important Tips

1. Set up auto-debit from your post office savings account to avoid missing instalments and default fees
2. Start early in the month — your deposit date is fixed when you open the account
3. Don't default for more than 4 months — the account will be discontinued
4. RD doesn't save tax — for tax benefits, consider 5-year Post Office FD or PPF instead
5. Loan facility available after 12 months — useful for emergencies without breaking the RD

Frequently Asked Questions

1. What is the minimum amount to open Post Office RD?

The minimum monthly deposit is ₹100, and you can increase in multiples of ₹10. There is no maximum limit.

2. Can I open Post Office RD online?

Yes, you can open RD online through DOP Internet Banking, DOP mobile app, or via the IPPB mobile app. You need a post office savings account first.

3. What is the current Post Office RD interest rate?

The current rate is 6.70% per annum (Q1 2025), compounded quarterly. Rates are revised every quarter.

4. Can I withdraw Post Office RD before 5 years?

Premature closure is allowed only after 3 years. Interest is paid at the savings account rate (4%) instead of the RD rate. Before 3 years, premature closure is not permitted.

5. Is Post Office RD tax free?

No, interest earned on Post Office RD is fully taxable as per your income tax slab. It does not qualify for Section 80C deduction.

6. What happens if I miss a monthly RD instalment?

A default fee of ₹1 per ₹100 per month of default is charged. If you default for more than 4 consecutive months, the account is discontinued.

7. Can I take a loan against Post Office RD?

Yes, you can take a loan of up to 50% of the balance after completing 12 monthly deposits. The loan carries interest at the RD rate + 2%.

Disclaimer: This guide is for informational purposes only. CitizenNest is an independent platform and is not affiliated with India Post or the Government of India. Please verify current rates on the official India Post website.