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Post Office Recurring Deposit

Government of India — small savings · Government & Post Office Schemes

A five-year monthly-deposit scheme: you pay a fixed amount each month and receive the total with interest at maturity.

Terms set by notification Not published as a number here — it varies by provider, tenure or plan.

The official page listing this scheme with the current rates and rules.

Check the official page

Source India Post — saving schemes

www.indiapost.gov.in/banking-services/savings

The official page listing this scheme with the current rates and rules.

How it works

Post Office Recurring Deposit is a government schemes product from Government of India — small savings, in the guaranteed category: fixed by contract. A five-year monthly-deposit scheme: you pay a fixed amount each month and receive the total with interest at maturity.

Because the return type is guaranteed, the questions that matter most are: Is the rate fixed for the whole tenure, or revised during it? Who is actually promising to pay, and what happens if they don't?

  • Building a lump sum from monthly savings
  • A disciplined, low-risk savings habit

Key facts

Provider
Government of India — small savings
Source
India Post — saving schemes ↗ https://www.indiapost.gov.in/banking-services/savings
Rate
Terms set by notification ↗
Category
Government & Post Office Schemes
Minimum investment
₹100 per month, and in multiples of ₹10
Tenure
5 years
Payout
At maturity
Eligibility
Resident individuals, singly or jointly. A guardian can open one for a minor.
Getting your money back
Locked for five years; premature closure allowed after three years with a rate penalty.
Protection
A sovereign liability of the Government of India.
Tax
Interest is taxable as income from other sources and may attract tax deducted at source.

What can go wrong

  • Missing a monthly instalment can default the account and attract a fee.
  • The rate is notified quarterly and can be revised.
  • Five years of fixed monthly payments is a commitment, not a flexible saving.

Before you decide anything

  • The default fee if you miss an instalment
  • Whether the account can be revived after default

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.

Other products in this category

The same rules and the same kind of trade-offs, described the same way.