The Post Office has long been a trusted name for safe and reliable savings schemes in India. Backed by the Government of India, these small savings instruments continue to attract risk-averse investors who seek guaranteed returns.
Among the many options, the Post Office Recurring Deposit (RD) Scheme has gained popularity as it allows people to save systematically with fixed monthly deposits. By depositing ₹4,000 every month, investors can build a handsome corpus along with a guaranteed return of ₹45,459 at maturity.
What is the Post Office RD Scheme?
The Post Office Recurring Deposit is a medium-term investment plan with a tenure of 5 years. Under this scheme, investors deposit a fixed amount each month, which earns compound interest at rates declared by the government. Since it is fully backed by the central government, the scheme ensures complete safety of investment along with assured growth.
Current Interest Rate in 2025
As of September 2025, the Post Office RD scheme offers an interest rate of 6.7% per annum, compounded quarterly. This means that deposits grow steadily over time, and investors receive a lump sum at the end of the tenure.
How ₹4,000 Monthly Becomes ₹2.85 Lakh in 5 Years
If you deposit ₹4,000 every month for 60 months, the total principal comes to ₹2,40,000. With 6.7% annual interest compounded quarterly, the maturity amount becomes approximately ₹2,85,459. Out of this, the net interest earned is around ₹45,459.
Maturity Value Calculation
| Monthly Deposit | Tenure | Interest Rate | Total Deposit | Maturity Value | Net Interest Earned |
|---|---|---|---|---|---|
| ₹4,000 | 5 Years (60 Months) | 6.7% p.a. | ₹2,40,000 | ₹2,85,459 | ₹45,459 |
Why Choose Post Office RD?
The Post Office RD scheme is ideal for individuals who prefer steady and secure savings. It requires disciplined monthly deposits, offers government-backed safety, and guarantees fixed returns regardless of market fluctuations. Additionally, it allows nomination facility, premature closure under certain conditions, and the option to take loans against the deposit balance.
How to Open an Account
An RD account can be opened at any post office branch across India. Investors need to provide KYC documents such as Aadhaar card, PAN card, and passport-size photographs. Accounts can be opened individually, jointly, or even on behalf of minors, making it a flexible savings option for families.
Final Thoughts
The Post Office RD scheme is a powerful tool for small savers who want guaranteed returns without market risk. By saving just ₹4,000 per month, investors can build a secure corpus of ₹2.85 lakh in 5 years and earn a guaranteed ₹45,459 interest. For those who want peace of mind along with assured growth, this scheme is a safe and effective choice.