Post Office RD Rules 2026: Interest Rate, Maturity Chart & New Aadhaar Rule
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The Post Office Recurring Deposit (RD) is a government-backed small savings scheme for people who want to save a fixed amount every month. It offers a five-year tenure, a minimum monthly deposit of ₹100 and an interest rate of 6.7% per annum, compounded quarterly, for accounts opened during October–December 2026.
At this rate, depositing ₹1,000 every month for five years can grow to approximately ₹71,366 before tax. A ₹5,000 monthly deposit can reach around ₹3,56,829, provided all 60 instalments are paid and the applicable maturity calculation is followed.
The Department of Posts has also introduced Aadhaar biometric authentication for eligible cash deposits at branch post offices. This update can make deposits easier for customers who meet the required e-KYC conditions.
This guide explains the latest Post Office RD rules for 2026, including the current interest rate, eligibility, documents, deposit deadlines, default charges, maturity calculations, withdrawal facility, premature closure, taxation and online account services.
Post Office RD Rules 2026: Key Details at a Glance
| Account detail | Current rule |
|---|---|
| Official scheme name | National Savings Recurring Deposit Account |
| Interest rate | 6.7% per annum |
| Interest calculation | Quarterly compounding |
| Tenure | 5 years (60 monthly deposits) |
| Minimum monthly deposit | ₹100 |
| Additional deposit amount | Multiples of ₹10 |
| Maximum deposit | No prescribed maximum |
| Eligible account holders | Adults, eligible joint holders, minors through guardians and qualifying minors above 10 |
| Premature closure | Generally permitted after three years, subject to scheme rules |
| Withdrawal facility | Up to 50% of the balance after one year, subject to conditions |
| Tax deduction under Section 80C | Not available for RD deposits |
| Scheme operator | Department of Posts, Government of India |
The RD interest rate for October–December 2026 remains 6.7%. The Ministry of Finance’s 30 September 2026 notification retained the existing small savings rates for the quarter. You can check the official Department of Economic Affairs small savings page (dea.gov.in/budget-division/475) and India Post savings schemes (https://www.indiapost.gov.in/banking-services/savings) for the applicable rate.
What Is a Post Office Recurring Deposit?
A Post Office RD is a monthly savings scheme offered under the National Savings Recurring Deposit Account Scheme. Instead of investing a large amount at once, you deposit a fixed amount every month for five years.
Interest is calculated according to the scheme’s rules and compounded quarterly. At maturity, the accumulated amount is paid to the account holder, subject to applicable rules and any outstanding dues.
For example, someone who deposits ₹1,000 each month contributes ₹60,000 over five years. At the current 6.7% rate, the estimated maturity amount is approximately ₹71,366.
An RD can be useful for salaried employees, small business owners, homemakers and parents who want to build a savings habit without needing a large initial investment.
However, it is important to choose a monthly amount that you can afford consistently. Missing instalments can result in default charges and may affect the account’s continuation.
Post Office RD Interest Rate for October–December 2026
The current Post Office RD interest rate is 6.7% per annum, compounded quarterly.
The Ministry of Finance reviews small savings interest rates periodically. The rate applicable to a new RD depends on the official notification in force when the account is opened.
For an existing RD, the applicable scheme rate is generally retained for the account’s prescribed term. A subsequent change in rates for newly opened accounts does not automatically change the rate on an existing RD.
Other Post Office Savings Scheme Rates
The following rates apply for October–December 2026.
| Savings scheme | Annual interest rate |
|---|---|
| Post Office Savings Account | 4.0% |
| 5-Year Recurring Deposit | 6.7% |
| Public Provident Fund (PPF) | 7.1% |
| Monthly Income Scheme | 7.4% |
| 5-Year Time Deposit | 7.5% |
| National Savings Certificate | 7.7% |
| Senior Citizens Savings Scheme | 8.2% |
| Sukanya Samriddhi Account | 8.2% |
These schemes have different eligibility requirements, deposit rules, tax treatment and withdrawal restrictions. A higher advertised interest rate does not necessarily make one scheme more suitable than another.
The Post Office RD is designed for regular monthly savings rather than a one-time lump-sum investment.
Who Can Open a Post Office RD Account?
The National Savings Recurring Deposit Account Scheme permits the following account arrangements:
- A single adult can open an account in their own name.
- Up to three eligible adults can open a joint account.
- A guardian can open an account on behalf of a minor.
- A guardian can open an account for a person who is legally eligible to be represented by a guardian under the scheme.
- A minor above 10 years of age can open an account in their own name, subject to the applicable rules.
There is no general limit on the number of RD accounts an eligible person can hold.
The monthly instalment is fixed when the account is opened. If you later want to save more money every month, you may consider opening another RD instead of assuming that the original instalment can be increased.
Before opening an account, confirm the required documents and operating conditions with the post office handling your application.
Documents Required for a Post Office RD Account
The exact documents depend on your identity, address, account type and existing customer records.
You may generally need:
- A completed account-opening form.
- Aadhaar or another accepted identity document.
- PAN or Form 60, as applicable.
- A recent passport-size photograph, where required.
- Address proof if additional verification is needed.
- The initial deposit.
- A passbook or other account documentation issued during opening.
If you already have a Post Office Savings Account, some customer information may be available in your existing records. The post office can explain whether fresh KYC documents are required.
Do not assume that Aadhaar alone will satisfy every requirement in every case. Check the applicable KYC procedure before visiting the counter.
How to Open a Post Office RD Account
You can apply at a post office offering the scheme. Eligible customers may also use the online facilities available through India Post banking services.
Opening an RD at a post office
- Visit a post office that offers National Savings RD accounts.
- Ask for the recurring deposit account-opening form.
- Complete the form with your personal details and proposed monthly deposit.
- Submit the required KYC documents.
- Make the initial deposit using an accepted payment method.
- Complete any additional verification required by the post office.
- Collect your passbook or account confirmation and check that the monthly deposit amount is correct.
If you pay by cheque, the deposit date is generally determined by the date the cheque is cleared, under the applicable rules.
Opening an RD online
India Post offers internet banking facilities for eligible customers with an appropriately activated Post Office Savings Account.
Depending on your account and available services, you may be able to open a linked RD, transfer money for instalments and view account transactions.
Start at the official India Post e-banking portal. If you have not activated internet banking or mobile banking, ask your post office about the registration process.
Online facilities can depend on account eligibility and service availability. If the RD opening option is not visible, contact India Post rather than using an unofficial website.
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New Aadhaar Biometric Deposit Rule in 2026
The Department of Posts issued SB Order No. 06/2026 on 22 June 2026, introducing Aadhaar-authenticated e-KYC operations at branch post offices through the Digital Rural Enterprise Application for Mobiles (DREAM).
Under this facility, eligible customers can deposit up to ₹50,000 into a Post Office Savings Account, RD account or Sukanya Samriddhi Account using biometric authentication without submitting a paper pay-in slip.
The facility is subject to the conditions in the Department of Posts order.
Who can use the biometric deposit facility?
Important conditions include:
- The customer’s record must be converted to an Aadhaar-based e-KYC Customer Information File (CIF).
- The depositor must complete the required Aadhaar biometric authentication.
- The facility applies to eligible single accounts, not joint or minor accounts.
- The customer’s Aadhaar and mobile number must be linked to the relevant CIF as required by the department’s procedures.
- The branch post office must have the necessary facility and be able to process the transaction.
The order also provides for biometric withdrawals of up to ₹20,000 from eligible Post Office Savings Accounts, subject to its conditions. This withdrawal facility should not be confused with a withdrawal from an RD.
If your account has not been converted to an Aadhaar-based e-KYC CIF, the usual paper-based process may still apply.
Practical tip: Before travelling to a branch post office, ask whether your RD is eligible for Aadhaar-authenticated deposits and whether your customer record is ready. The official order is available here. (utilities.cept.gov.in/dop/pdfbind.ashx?id=15066)
Post Office RD Maturity Chart for 2026
The Post Office RD matures after five years, equivalent to 60 monthly instalments. The maturity amount depends on the monthly deposit and the scheme’s prescribed calculation method.
The following table provides estimated maturity values at 6.7% per annum, compounded quarterly.
| Monthly deposit | Total deposited in 5 years | Estimated maturity amount | Estimated interest |
|---|---|---|---|
| ₹100 | ₹6,000 | ₹7,137 | ₹1,137 |
| ₹500 | ₹30,000 | ₹35,683 | ₹5,683 |
| ₹1,000 | ₹60,000 | ₹71,366 | ₹11,366 |
| ₹2,000 | ₹1,20,000 | ₹1,42,732 | ₹22,732 |
| ₹3,000 | ₹1,80,000 | ₹2,14,097 | ₹34,097 |
| ₹5,000 | ₹3,00,000 | ₹3,56,829 | ₹56,829 |
| ₹10,000 | ₹6,00,000 | ₹7,13,658 | ₹1,13,658 |
These are estimates for planning purposes, before tax. The final amount should be confirmed using the official scheme calculation or the maturity value supplied by the post office. Do not treat an estimated online figure as a guaranteed payout to the last rupee.
How much will ₹5,000 per month return?
If you deposit ₹5,000 every month for 60 months:
- Total deposits: ₹3,00,000.
- Estimated maturity amount: ₹3,56,829.
- Estimated interest: ₹56,829.
This example assumes all instalments are made according to the scheme’s schedule and there are no adjustments for defaults, early closure, outstanding dues or other account-specific circumstances.
How much will ₹1,000 per month return?
A monthly deposit of ₹1,000 totals ₹60,000 over five years. At the stated rate, the estimated maturity amount is ₹71,366, including approximately ₹11,366 in interest.
Can you calculate the maturity amount for another monthly deposit?
For a quick estimate, the table can help you understand how returns increase with the deposit amount. For a deposit that is not listed, use an official Post Office RD calculator or ask the post office to calculate the maturity value using the applicable scheme rules.
Avoid calculating the return by simply multiplying 6.7% by five years. Each monthly instalment remains invested for a different period, so simple-interest arithmetic does not accurately represent the RD maturity calculation.
Post Office RD Deposit Dates and Default Rules
Making each instalment on time is important. The prescribed monthly due date depends on when the account was opened.
- If the account was opened on a date between the 1st and the 15th of a month, subsequent instalments are generally due by the 15th.
- If the account was opened between the 16th and the last working day of a month, subsequent instalments are generally due by the last working day.
Always check the exact due date applicable to your account, especially when a public holiday or a non-working day affects banking operations.
What happens if you miss an instalment?
A missed instalment results in a default under the scheme. The standard default fee is ₹1 for every ₹100 of the monthly deposit for each defaulted month, proportionately applied to other deposit amounts.
For example, if your monthly RD deposit is ₹5,000, one default would generally attract a fee of ₹50 in addition to the missed instalment.
The fee does not replace the missed deposit. You must follow the applicable procedure to pay the overdue instalment and revive or regularise the account.
How many defaults are allowed?
The scheme has specific rules governing defaults, discontinuation and revival. The distinction between the fourth and fifth defaults is important:
- An account with up to four defaults may qualify for regularisation under the scheme’s conditions.
- If more than four monthly defaults occur, the account is treated as discontinued under the applicable rules.
- Revival is subject to the prescribed time limit and payment of overdue instalments and fees.
- An account holder may be able to extend the account’s period to cover defaulted months, where permitted by the scheme.
Do not assume that a discontinued account can always be revived at any time. Contact the post office promptly if you have missed several instalments, and ask it to calculate the amount due and confirm your account’s status.
Advance Deposits and Rebate
Post Office RD account holders may be able to pay instalments in advance under the scheme’s conditions.
Advance deposits can help people who receive seasonal income or prefer to set aside several months of savings at once. A rebate is available for qualifying advance payments, subject to the scheme’s denomination and payment rules.
The scheme’s published terms include rebates for eligible advance deposits of six or twelve monthly instalments. The amount depends on the applicable denomination and the number of instalments paid in advance.
Before paying several months at once, ask the post office to confirm the rebate, how the payment will be recorded and whether the account qualifies. Advance payment should not be confused with an increase in the fixed monthly instalment.
Withdrawal Facility and Loan Against Post Office RD
The National Savings Recurring Deposit scheme provides a conditional facility to access part of the accumulated balance before maturity.
According to the National Savings Institute’s scheme summary, withdrawal of up to 50% of the existing balance is permissible after one year of account opening, subject to the applicable conditions.
This facility can help when an unexpected expense arises, but it should not be treated as unrestricted access to the account. Confirm the minimum number of deposits, account eligibility, repayment conditions and applicable interest or charges with the post office before applying.
How much can you withdraw?
The permitted amount is based on the eligible balance and scheme rules. For example, if the relevant balance is ₹90,000, 50% would be ₹45,000. This is an illustration of the calculation, not confirmation that every account with that balance qualifies to withdraw that amount.
Is borrowing better than closing the RD early?
That depends on the amount you need, the applicable charges and the terms of the facility. Closing the RD prematurely can reduce the interest payable on the entire account, while a permitted partial withdrawal may allow the remaining account to continue.
Ask the post office to explain the current withdrawal procedure and any repayment or interest conditions. Do not assume a particular loan interest rate without confirming the rule applicable to your account.
Premature Closure of a Post Office RD
The Post Office RD is designed for a five-year term, but premature closure is generally allowed after the account has completed three years, subject to the scheme rules.
When an account is closed prematurely, interest is calculated at the applicable Post Office Savings Account rate rather than the normal RD rate, as prescribed by the scheme.
For October–December 2026, the Post Office Savings Account rate is 4.0% per annum. The amount payable on premature closure will depend on the account’s history and the applicable calculation rules.
Before closing an RD, consider the following:
- How much money you need immediately.
- Whether a permitted partial withdrawal could meet the need.
- How the savings-account interest calculation would affect your payout.
- Whether any outstanding instalments or other dues need to be settled.
- Whether you are close enough to maturity that waiting would be more beneficial.
Contact the post office for an account-specific closure calculation before making a final decision.
What Happens After Five Years?
After the RD completes its prescribed five-year term, the account holder can claim the maturity amount under the scheme’s procedures.
The account may also be eligible for an extension for a further period under the scheme’s rules. The extension conditions, deposit options and interest treatment should be confirmed before choosing this route.
If you do not need to continue saving through the RD, you can request closure and follow the post office’s maturity payment procedure.
Keep your passbook, account details and KYC information available when applying for maturity proceeds.
Tax on Post Office RD Interest
Post Office RD interest is generally taxable under the applicable income-tax rules. The fact that the scheme is government-backed does not automatically make the interest tax-free.
Is Post Office RD eligible for Section 80C?
No. Deposits into a standard Post Office Recurring Deposit do not qualify for a Section 80C deduction.
This differs from certain other savings products, including eligible five-year Post Office Time Deposits and PPF, which have separate tax rules and eligibility conditions.
Is TDS deducted on RD interest?
Tax deducted at source (TDS) and the final tax payable are two different matters.
The Income Tax Department’s published guidance lists the following general threshold for interest on time deposits, including recurring deposits:
- ₹50,000 for most eligible depositors.
- ₹1,00,000 for senior citizens.
These thresholds apply under the relevant provisions and conditions. They should not be interpreted as a general exemption from tax on RD interest.
For amounts credited or paid from 1 April 2026, the applicable withholding provisions are under the Income-tax Act, 2025. The treatment depends on the applicable law and the nature of the payment.
You should confirm the current TDS treatment with your post office if your interest is near the threshold. Even when TDS is not deducted, taxable interest may still need to be reported in your income-tax return.
For official guidance, visit the Income Tax Department (https://www.incometax.gov.in) or Income Tax India. (https://www.incometaxindia.gov.in)
Post Office RD vs Bank RD, Time Deposit and PPF
The best savings option depends on your financial goals, how often you can invest and when you need the money.
| Feature | Post Office RD | Bank RD | 5-Year Post Office Time Deposit | PPF |
|---|---|---|---|---|
| Contribution pattern | Monthly | Monthly | Lump sum | Annual contributions |
| Minimum contribution | ₹100 per month | Depends on the bank | Generally ₹1,000 | ₹500 per financial year |
| Tenure | 5 years | Depends on the bank | Multiple term options | Long-term scheme |
| Interest treatment | Rate applicable at opening, quarterly compounding | Depends on product terms | Rate applicable at opening | Rate reviewed periodically |
| Government backing | Government small savings scheme | Eligible deposits covered by DICGC within applicable limits | Government small savings scheme | Government small savings scheme |
| Section 80C benefit | No | Generally no for ordinary RD | Eligible five-year deposit may qualify under applicable tax rules | Eligible contributions may qualify under applicable tax rules |
Choose a Post Office RD if you want to save a fixed amount every month and prefer a government-backed savings product.
Choose a bank RD if you need a more flexible tenure or features that better match your savings goals.
Consider a Time Deposit if you already have a lump sum and want to invest it for a fixed term.
Consider PPF if you want a long-term savings product and its lock-in and tax provisions suit your financial situation.
Compare the full terms, not just the headline interest rates.
How to Check RD Balance and Pay Instalments Online
If your RD is linked to an eligible Post Office Savings Account and the required banking services are active, you may be able to view account transactions and make instalment payments online.
The available facilities depend on your account setup and the services enabled for your customer profile.
To check your options:
- Visit the official India Post e-banking portal. (ebanking.indiapost.gov.in)
- Sign in using your registered credentials.
- Look for linked accounts and available RD services.
- Review the transaction history and payment options.
- Check that the instalment has been credited after making a payment.
Eligible customers may also be able to arrange recurring transfers or standing instructions, depending on the services available to them.
If online access is unavailable, you can visit your post office and use your passbook or request the relevant account information.
Never share your banking password, OTP or other authentication credentials with an agent or an unofficial website.
Nomination, Transfer and Death Claims
Nomination and accurate account records can make it easier for the appropriate person to deal with an account if the holder dies.
Adding a nominee
Ask the post office about the nomination form and the procedure for registering or changing a nominee. Check that the nomination has been recorded correctly.
Transferring an RD account
If you move to another area, ask India Post about transferring the RD to another eligible post office. The process may require a prescribed form, the passbook and KYC verification.
Confirm the current procedure with the transferring or receiving office before submitting your documents.
What happens if the account holder dies?
The nominee or eligible claimant should contact the post office handling the account and ask for the applicable death-claim procedure.
The documents and settlement process can depend on the nomination status, balance, legal circumstances and applicable rules. A nominee should not assume that every account can automatically be continued or withdrawn without additional verification.
What if there is no nominee?
Claims without a registered nominee may require additional documentation. The process depends on the account balance and the rules governing settlement, including any indemnity, affidavit, disclaimer or succession documents that may be required.
Ask the post office for the current requirements rather than relying on a single threshold or document list that may not fit every case.
Who Should Consider Opening a Post Office RD?
A Post Office RD can be useful for people who want a structured way to save over five years.
Salaried employees: A monthly deposit can be scheduled around payday, helping you save before spending the remaining income.
Small business owners: Choose an instalment that remains manageable even during slower months. Avoid committing to an amount based only on your best earning months.
Parents: An eligible guardian can open an account for a minor, making the RD one option for building a savings habit for a child.
First-time savers: The ₹100 minimum deposit makes it possible to start small and develop a consistent savings routine.
People saving for a planned expense: A five-year RD may help build funds for an expected future cost, provided the maturity date fits your plans.
The scheme may be less suitable if you need frequent access to your money, want to vary your contribution every month or are saving for a goal that falls before the five-year maturity date.
Common Post Office RD Mistakes to Avoid
- Choosing an unaffordable instalment: Select an amount you can maintain throughout the five-year term.
- Missing the due date: Confirm whether your instalment is due by the 15th or the last working day.
- Ignoring default fees: Pay missed instalments and contact the post office promptly if defaults accumulate.
- Assuming early closure has no cost: Ask for the applicable premature-closure calculation first.
- Treating interest as tax-free: Report taxable interest as required under the applicable tax rules.
- Ignoring nomination: Complete the nomination procedure where applicable.
- Trusting unofficial maturity calculators: Use estimates for planning and verify the final amount with India Post.
- Sharing sensitive banking information: Use official channels and never disclose passwords or OTPs to an agent.
Frequently Asked Questions
What is the Post Office RD interest rate in October–December 2026?
The rate is 6.7% per annum, compounded quarterly. The Ministry of Finance retained the small savings rates for this quarter.
What is the minimum deposit for a Post Office RD?
The minimum monthly deposit is ₹100. Higher deposits must generally be in multiples of ₹10, and there is no prescribed maximum deposit.
How much will I get from a ₹5,000 monthly RD?
At 6.7% per annum, the estimated maturity amount after five years is ₹3,56,829 on total deposits of ₹3,00,000. The final amount should be confirmed using the scheme’s calculation rules.
How much will I get from a ₹1,000 monthly RD?
The estimated five-year maturity amount is ₹71,366 on total deposits of ₹60,000, including approximately ₹11,366 in interest.
Can I change my monthly RD deposit later?
The monthly instalment is fixed when the account is opened. If you want to save more, ask the post office about opening another eligible RD account.
Can I open a Post Office RD online?
Eligible customers may be able to open an RD through India Post’s internet banking facilities if they have the required linked account and active services. Availability depends on account eligibility.
Can I deposit cash without a pay-in slip?
Yes, eligible customers can deposit up to ₹50,000 into qualifying single RD accounts at participating branch post offices through Aadhaar biometric authentication, subject to the e-KYC and other conditions in SB Order No. 06/2026.
Can I withdraw money before five years?
A conditional withdrawal facility of up to 50% of the existing balance is described in the scheme’s guidance after one year of account opening. Premature closure is generally permitted after three years, subject to the scheme’s rules.
What happens if I miss an RD instalment?
A default fee generally applies at ₹1 for every ₹100 of the monthly deposit for each defaulted month, proportionately for other amounts. Multiple defaults can affect the account’s status and revival eligibility.
Is Post Office RD interest taxable?
Yes, RD interest is generally taxable under the applicable income-tax rules. A standard Post Office RD does not qualify for a Section 80C deduction.
Is a Post Office RD safe?
It is a Government of India small savings scheme administered by the Department of Posts. It is different from a bank deposit covered by DICGC insurance, and its protection should be understood in the context of the government scheme.
Can a minor open a Post Office RD?
A guardian can open an account for a minor. A minor above 10 years may also open an account in their own name, subject to the scheme’s rules.
Can I extend my RD after maturity?
The scheme permits continuation after maturity under prescribed conditions. Ask the post office about the available extension options and the applicable interest treatment before deciding.
Official Sources for Post Office RD Rules 2026
Use these government sources to check the scheme terms, rates and current operational procedures.
- India Post savings schemes: https://www.indiapost.gov.in/banking-services/savings
- National Savings Institute RD scheme information: https://www.nsiindia.gov.in/
- Ministry of Finance small savings notifications: https://dea.gov.in/budget-division/475
- Department of Posts SB Order No. 06/2026: https://utilities.cept.gov.in/dop/pdfbind.ashx?id=15066
- India Post e-banking: https://ebanking.indiapost.gov.in/
- Income Tax Department: https://www.incometax.gov.in/
- Income Tax India TDS guidance: https://www.incometaxindia.gov.in/
Disclaimer
This article is for general information and educational purposes. It is not an official India Post publication or individual financial or tax advice. Interest rates, operating procedures and tax rules may change. Confirm the applicable rules, maturity value and eligibility with India Post and the relevant government department before making a financial decision.
