Post Office RD Account 2026: Interest Rate, Tax Rules, Withdrawal & Loan Details

India Post Office Recurring Deposit (RD) Account is a small savings scheme where a fixed amount is paid every month for a set term. The Post Office RD interest rate is 6.7% per annum, compounded quarterly, and this rate stays fixed for the full term once the account is opened. The scheme is open for fresh deposits and can be started with as little as Rs 100 a month.

People who can save a fixed sum from their monthly income can use this scheme to build a defined amount over time. Unlike a fixed deposit, there is no lump sum payment needed here. The account can be opened at any post office or online through the India Post Payments Bank (IPPB) app, and the balance can be checked online at the official website indiapost.gov.in.

Recurring Deposit Account in Indian Post Offices

As per central government norms, the Post Office Recurring Deposit Account runs for 5 years. For opening an RD account, people can make a minimum initial deposit of Rs 100 per month and afterwards any amount in multiples of Rs 10. There is no maximum limit in the 5 Years Post Office Recurring Deposit Account (RD). People can Compare All Post Office Schemes before making an investment.

People can also compare other Post Office Schemes like National Saving Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana (SSY), Post Office Savings Account, Senior Citizen Saving Scheme (SCSS), Time Deposit Account (TD), Monthly income Scheme (MIS). Check nsc vs ppf vs kvp vs ssy vs scss vs td vs mis vs rd vs savings account.

RD Account Opening Online Application Form

To open a Recurring Deposit Account in any post office of India, the RD Account Opening Form has to be submitted to the concerned officials. People can now download the India Post Office RD Account Opening Form through the official India Post website. On the official savings schemes page, the account opening form is available under the forms section. People can also collect the form directly from the nearest post office.

STEP 1 - Open the official India Post website at indiapost.gov.in and go to the banking services savings section.

STEP 2 - Download the RD account opening form or collect it from the nearest post office branch.

STEP 3 - Fill in the form with your name, address and other details, and attach the required KYC documents like Aadhaar, PAN and address proof along with two passport size photos.

STEP 4 - Pay the first month's instalment in cash or by cheque and collect the passbook. The account is opened within the same day in most cases.

For the latest account opening and claim forms, people can also check the India Post Application Forms page. An RD can also be opened fully online through the IPPB mobile app if the saver already holds an IPPB savings account. Under the Department of Posts products section, the saver selects Recurring Deposit, enters the monthly instalment and tenure, and confirms. Instalments are then auto-debited from the linked IPPB savings account each month.

Who can open RD Account in Post Offices of India

The RD account is open to almost every resident saver. A single adult, up to three adults jointly, or a guardian on behalf of a minor can open this account. A minor above 10 years can also operate an account in their own name. Non-Resident Indians are not eligible to open a new Post Office RD account.

• A single adult can open an RD account in their own name.
• Joint Account (up to 3 adults) can be opened as Joint A or Joint B.
• A guardian can open the account on behalf of a minor.
• A guardian can also open the account on behalf of a person of unsound mind.
• A minor above 10 years can open the account in their own name.

Note - Any number of Recurring Deposit accounts can be opened in Post Offices of India.

Deposits in India Post Office Recurring Deposit Account

(i) Account can be opened by cash or cheque and in case of cheque the date of deposit shall be the date of clearance of the cheque.
(ii) Minimum amount for monthly deposit is Rs 100 and above minimum in multiple of Rs 10.
(iii) Subsequent deposit shall be made up to 15th day of the month, if the account is opened up to 15th of a calendar month.
(iv) Subsequent deposit shall be made up to the last working day of the month, if the account is opened between 16th day and the last working day of a calendar month.

Minimum / Maximum Amount in Post Office RD Account

Minimum INR 100 per month or any amount in multiples of INR 10. No maximum limit. The instalment chosen at opening stays fixed for the life of the account and cannot be changed midway. A saver who wants to increase the monthly amount opens a second RD account rather than editing an existing one.

Recurring Deposit (RD) Account Default

If a monthly deposit is missed, a default fee is charged for each defaulted month. The account can be revived within a fixed period, but repeated defaults can discontinue the account. The rules are given below.

• If a subsequent deposit is not made up to the prescribed day for a month, a default is charged for each defaulted month. A default fee of Rs 1 is charged for a Rs 100 denomination account, with a proportionate amount for other denominations.
• If there is a monthly default in any RD account, the depositor has to first pay the defaulted monthly deposit with the default fee and then pay the current month's deposit.
• After 4 regular defaults, the account becomes discontinued and can be revived within two months from the 4th default. If the account is not revived within this period, no further deposit can be made in such an account and the account stays discontinued.
• If there are not more than four defaults in monthly deposits, the account holder may, at their option, extend the maturity period of the account by as many months as the number of defaults and deposit the defaulted instalments during the extended period.

India Post Office RD Advance deposit

(i) If an RD account is not discontinued, an advance deposit can be made for up to 5 years in the account.
(ii) A rebate is given on advance deposit of at least 6 instalments (inclusive of the month of deposit). For a Rs 100 denomination, the rebate is Rs 10 for 6 months and Rs 40 for 12 months.
(iii) The advance deposit may be made at the time of opening the account or any time thereafter.

RD Interest Rate 2026

An RD Account can be opened in any post office pan India. Candidates can also avail benefits of the recurring deposit scheme in banks. The central government has allowed RD account opening in various nationalized banks like SBI, HDFC and Canara Bank to ensure higher reach and easy access. Candidates can open this account in cash or through cheque.

Post Office RD interest rate is 6.7% per annum, compounded quarterly, for the October to December 2026 quarter. Ministry of Finance reviews the rate every quarter, and in its review on 30 September 2026 it kept 6.7% unchanged. The rate has stayed at this level since October 2023. The interest earned can be calculated using the Post Office RD Calculator. The RD account offers sovereign guarantee, capital protection and quarterly interest payment which acts as a source of income. This investment is secure and also carries an attractive interest rate.

Post Office RD Account Check Online - Tax Benefits

For a lump sum amount, a Fixed Deposit (FD) is preferred, and when a person can save a defined amount from income every month, a Recurring Deposit (RD) is preferred. Subscribers have the option to withdraw the earned interest or to reinvest it. Interest earned on a Post Office RD is fully taxable and is added to the depositor's income. The post office does not deduct TDS on RD interest, which differs from bank RDs where TDS applies once interest crosses a set limit. The RD does not qualify for any Section 80C deduction, so it is not a tax-saving instrument. Income tax on the earned interest is calculated as per Income Tax Slab Rates.

Comparison of Tax on Interest - Recurring Deposit vs Fixed Deposit vs Savings Account

Specification	Fixed Deposit - Tax on Interest	Recurring Deposit - Tax on Interest	Savings Account - Tax on Interest
TDS Applicability	TDS @ 10% of Interest	No TDS	No TDS
Income Tax Deduction Allowed	Full Interest Taxable	Full Interest Taxable	Rs 10000 Deduction
Income Tax on Interest	As per IT Slab Rates	As per IT Slab Rates	As per IT Slab Rates

Loan on Recurring Deposit (RD) Account

(i) After 12 instalments are deposited and the account has run for 1 year without being discontinued, the depositor may avail a loan facility of up to 50% of the balance credit in the account.
(ii) The loan can be repaid in one lump sum or in equal monthly instalments.
(iii) Interest on the loan will be applicable as 2% + the RD interest rate applicable to the RD account.
(iv) Interest will be calculated from the date of withdrawal to the date of repayment.
(v) If the loan is not repaid till maturity, the loan plus interest will be deducted from the maturity value of the RD account.

Note - The loan can be taken by submitting the loan application form with the passbook at the concerned Post Office.

Premature Closure of RD Account in Post Office

(i) An RD Account can be closed prematurely after 3 years from the date of account opening by submitting the prescribed application form at the concerned Post Office.
(ii) The Post Office Savings Account interest rate will be applicable if the account is closed prematurely, even one day before maturity.
(iii) No premature closure of the account shall be permissible until the period for which the advance deposits have been made.

Recurring Deposit (RD) Account Maturity Period

The RD account matures after 5 years, which equals 60 monthly instalments. After maturity, the account can be extended or closed as per the saver's choice. The maturity rules are given below.

• 5 years (60 monthly deposits) from the date of opening.
• The account can be extended for a further 5 years by giving an application at the concerned Post Office. The interest rate applicable during extension will be the rate at which the account was originally opened.
• An extended account can be closed any time during the period of extension. For completed years, the RD interest rate will be applicable, and for a period less than a year, the PO Savings Account interest rate will be applicable.
• An RD account can also be retained for up to 5 years from the date of maturity without any deposit.

Repayment on the death of account holder

(i) On the death of the account holder, the nominee or claimant can submit a claim at the concerned Post Office to get the eligible balance of such RD account.
(ii) After sanction of the claim, the nominee or legal heirs can continue the RD account till maturity by submitting an application at the concerned Post Office.

Recurring Deposit Account interest rate 2026 is similar to the interest of FD. But in FD, people have to make a lump sum payment, while in RD people can invest in instalments. Moreover, FD interest is paid yearly while RD interest is paid quarterly. People can also make RD login at the website of Post Office RD Account Check Online.

Post Office RD Account Check Online - Highlights at a Glance

All people who wish to and are able to make a monthly investment should invest in this scheme, as the initial deposit in a fixed deposit account needs to be made as a lump sum, while RD provides the facility to invest in instalments. Moreover, people can track their invested amount and make Post Office RD Account Check Online.

The important features and highlights of the RD Account, such as the RD interest rate, interest payable, periodicity, minimum opening and closing balance, nomination facility and transfer of RD account, are given below.
Recurring Deposit Account - RD Account Calculator and Salient Features

Interest Payable, Rates, Periodicity - For 1 October to 31 December 2026, the interest rate is 6.7% p.a, compounded quarterly.

Minimum amount for opening of account and maximum balance that can be retained - Minimum INR 100 per month or any amount in multiples of INR 10. No maximum limit.

(a) Who can open:- (i) a single adult (ii) Joint Account (up to 3 adults) (Joint A or Joint B) (iii) a guardian on behalf of minor (iv) a guardian on behalf of person of unsound mind (v) a minor above 10 years in their own name. Note - Any number of accounts can be opened. (b) Deposits:- (i) Account can be opened by cash or cheque and in case of cheque the date of deposit shall be the date of clearance of the cheque. (ii) Minimum amount for monthly deposit is Rs 100 and above minimum in multiple of Rs 10. (iii) Subsequent deposit shall be made up to the 15th day of the month, if the account is opened up to the 15th of a calendar month. (iv) Subsequent deposit shall be made up to the last working day of the month, if the account is opened between the 16th day and the last working day of a calendar month. (c) Default:- (i) If a subsequent deposit is not made up to the prescribed day for a month, a default is charged for each defaulted month. A default fee of Rs 1 is charged for a Rs 100 denomination account, with a proportionate amount for other denominations. (ii) If there is a monthly default in any RD account, the depositor has to first pay the defaulted monthly deposit with the default fee and then pay the current month's deposit. (iii) After 4 regular defaults, the account becomes discontinued and can be revived within two months from the 4th default. If the account is not revived within this period, no further deposit can be made in such an account and it stays discontinued. (iv) If there are not more than four defaults in monthly deposits, the account holder may, at their option, extend the maturity period of the account by as many months as the number of defaults and pay the defaulted instalments during the extended period. (d) Advance deposit:- (i) If an RD account is not discontinued, an advance deposit can be made for up to 5 years in the account. (ii) A rebate is given on advance deposit of at least 6 instalments (inclusive of the month of deposit). For a Rs 100 denomination, the rebate is Rs 10 for 6 months and Rs 40 for 12 months. (iii) The advance deposit may be made at the time of opening the account or any time thereafter. (e) Loan: (i) After 12 instalments are deposited and the account is continued for 1 year without being discontinued, the depositor may avail a loan facility of up to 50% of the balance credit in the account. (ii) The loan can be repaid in one lump-sum or in equal monthly instalments. (iii) Interest on the loan will be applicable at 2% plus the RD interest rate applicable to the RD account. (iv) Interest will be calculated from the date of withdrawal to the date of repayment. (v) If the loan is not repaid till maturity, the loan plus interest will be deducted from the maturity value of the RD account. (f) Premature Closure: (i) An RD Account can be closed prematurely after 3 years from the date of account opening by submitting the prescribed application form at the concerned Post Office. (ii) The PO Savings Account interest rate will be applicable if the account is closed prematurely, even one day before maturity. (iii) No premature closure of the account shall be permissible until the period for which the advance deposits have been made. (g) Maturity: (i) 5 years (60 monthly deposits) from the date of opening. (ii) The account can be extended for a further 5 years by giving an application at the concerned Post Office. The interest rate applicable during extension will be the rate at which the account was originally opened. (iii) An extended account can be closed any time during the period of extension. For completed years, the RD interest rate will be applicable, and for a period less than a year, the PO Savings Account interest rate will be applicable. (iv) An RD account can also be kept for up to 5 years from the date of maturity without any deposit. (h) Repayment on the death of account holder: (i) On the death of the account holder, the nominee or claimant can submit a claim at the concerned Post Office to get the eligible balance of the RD account. (ii) After sanction of the claim, the nominee or legal heirs can continue the RD account till maturity by submitting an application at the concerned Post Office.

The above mentioned features make RD investment more popular for people who want to save a certain defined amount monthly. For Post Office RD Account Check Online, visit the official website indiapost.gov.in.

FAQ's

What is the minimum amount to open a Post Office RD account?

The minimum is Rs 100 per month, with higher amounts allowed in multiples of Rs 10. There is no maximum limit on the amount that can be invested.

Can a Post Office RD account be opened online?

Yes. If the saver holds an IPPB savings account, the RD can be opened through the IPPB mobile app by selecting Recurring Deposit under the Department of Posts products. Instalments are then auto-debited each month.

What is the tenure of a Post Office RD account?

The standard tenure is 5 years, which equals 60 monthly instalments. The account can be extended for a further 5 years after maturity.

Can a loan be taken against a Post Office RD account?

Yes. After 12 instalments are paid and the account has run for at least one year without being discontinued, a loan of up to 50% of the balance can be taken. Interest is charged at 2% above the RD rate.

References

For more details, visit the official website indiapost.gov.in.