Recurring Deposit (RD): Interest, Post Office RD Rate

Updated 5 November 2026

A recurring deposit (RD) lets you save a fixed amount every month for a fixed period. At the end you get your deposits plus interest. It suits people who want a saving habit with no risk.

Post office RD

The post office 5-year RD pays 6.7% a year, compounded every quarter (rate for October–December 2026). The minimum is ₹100 a month.

Example

₹5,000 a month for 5 years at 6.7% becomes about ₹3.57 lakh. You deposit ₹3 lakh; interest is about ₹57,000.

Tax on RD

RD interest is taxed at your slab rate, the same as FD interest. Banks may deduct TDS.

RD or SIP?

An RD gives a fixed, safe return. A mutual fund SIP can earn more over 5+ years but its value goes up and down. Many people keep short-term goals in RD and long-term goals in SIP.

Try it

Open the RD calculator and enter your own numbers. Words you don't know are explained in the money glossary.