AI SummaryNational Savings Recurring Deposit (RD) helps citizens put aside small monthly amounts to build a steady fund and earn safe returns at 6.7% per annum. The scheme is managed by the Department of Posts under the Ministry of Communications and remains open for anyone who wants a simple, guaranteed way to save.
The account runs for a fixed tenure of 5 years, and interest is compounded quarterly. With a very low starting point of just ₹100 a month, it suits students, salaried people, and households that want to build a disciplined savings habit without any market risk.
National Savings Recurring Deposit Account (RD) - Introduction
National Savings Recurring Deposit Account (RD) is a small savings scheme offered through post offices across India. It encourages a habit of regular saving by letting you deposit a fixed amount every month and earn a guaranteed return on it. Because the scheme is backed by the Government of India, the money stays safe and the interest rate is fixed for each quarter.
For the current financial year 2026-27, the interest rate on Post Office RD stands at 6.7% per annum, compounded quarterly. The rate is reviewed every quarter by the Finance Ministry along with other small savings schemes, but the guaranteed nature of the return makes it a popular choice among risk-averse savers.
Key Information
| Feature | Details |
|---|---|
| Scheme Name | National Savings Recurring Deposit Account (RD) |
| Level | Central |
| Beneficiary Type | Individual |
| Nodal Ministry | Ministry of Communications |
| Nodal Department | Department of Posts |
| Tenure | 5 years |
| Interest Rate | 6.7% per annum, compounded quarterly |
| Minimum Deposit | ₹100 per month |
| Maximum Deposit | No limit |
| Benefit Type | Cash |
| DBT Scheme | No |
Deposit Rules
Opening an RD account is easy, but a few deposit rules must be followed to keep the account active and avoid penalties.
- Minimum deposit is ₹100 per month, and any amount can be added in multiples of ₹10.
- There is no maximum limit, so you can deposit as much as you wish every month.
- First monthly deposit must be made at the time of opening the account.
- For accounts opened before the 16th day of the month, later deposits are due by the 15th of each month.
- For accounts opened from the 16th to the end of the month, later deposits are due by the last working day of each month.
Advance deposits can be made for up to 5 years, and a small rebate is offered on advance payments. Full details on rebates and deposit rules are available in the official scheme guidelines: National Savings Recurring Deposit Scheme guidelines PDF.
Benefits
The scheme gives a secure way to grow money with a fixed return, and it also offers a loan facility against the deposited amount.
- Steady Growth: Guaranteed returns at 6.7% per annum, compounded quarterly, with no market risk.
- Flexibility: No ceiling on the maximum deposit amount, so savings can be scaled up as income grows.
- Loan Facility: A loan of up to 50% of the deposits can be taken after the account has been active for at least one year and twelve monthly deposits are completed.
Loan Terms
- Loans can be repaid in one lump sum or through equal monthly installments.
- Interest on the loan is charged at a rate 2% higher than the interest rate applying to the RD account.
- Any outstanding loan amount is recovered from the maturity proceeds if it is not repaid during the account term.
Eligibility
An RD account can be opened by most Indian citizens, and the rules also allow joint accounts and accounts for minors.
- Account holder must be a resident citizen of India.
- Accounts can be opened by a single adult, or jointly by up to three adults.
- A parent or guardian can open an account on behalf of a minor or a person of unsound mind.
- Minors who have reached the age of 10 years may open and operate the account themselves.
- On turning 18, the account holder must submit a new Account Opening Form and fresh KYC documents to move the account to an adult status.
Accounts can also be managed through e-Banking or Mobile Banking, as long as an active Post Office Savings Account is available. For general details on post office savings options, visit the India Post savings schemes page.
Application Process
The account can be opened offline at any post office, and the process is simple.
STEP 1 - Visit the nearest post office and collect the Account Opening Form along with the KYC form.
STEP 2 - Fill in the required information carefully, including name, address, and nominee details.
STEP 3 - Submit the completed forms with self-attested copies of identification documents.
STEP 4 - Provide the first deposit amount through cash or cheque.
STEP 5 - Once the documents are verified, the post office opens the account and shares the account details.
Documents
Keep the following documents ready while opening the account.
- PAN Card
- Aadhaar Card or a valid Government-issued ID proof
- Date of birth proof for minors
- KYC documents for all joint holders or guardians where applicable
For a detailed comparison of returns and rules, you can check the Post Office RD Account guide and the Post Office Savings Account details.
References
For further information and official updates, visit the official page: India Post savings schemes page.
FAQ's
What is the minimum monthly deposit requirement?
The minimum monthly deposit is ₹100, or any multiple of ₹10.
Are there any caps on the deposit amount?
No, there is no maximum limit for deposits in an RD account.
Can I apply for a loan against my RD?
Yes, a loan of up to 50% of the deposited amount is available provided the account has been active for one year and twelve monthly deposits have been fulfilled.
How is the loan interest calculated?
The loan interest rate is 2% above the prevailing interest rate of the RD account.
Can I open an RD account online?
Yes, an account can be opened through Post Office e-Banking or Mobile Banking if a Post Office Savings Account is already held.