If you want to create a big fund for your future by adding a small amount every month, then the Post Office Recurring Deposit (RD) scheme is the perfect option for you. The special thing is that if you start investing in RD from January 2026, then after 5 years your amount can reach around ₹ 7.5 lakh, while your total investment will be around ₹ 1.19 lakh.
Post Office RD scheme is best for those who want to make small savings regularly. Investment in this can be started with only ₹ 100 per month and it can also be increased as per your convenience. The tenure of RD is 5 years. In this, interest is added every quarter and on maturity the entire amount is received at once. This scheme is a good way to create a secure fund for children’s education, marriage or future needs.
RD investment calculation in 2026
Suppose you start investing ₹ 3,500 every month in RD from January 2026. Your total investment in 5 years i.e. 60 months will be ₹ 2,10,000. About 6.7% interest is available on Post Office RD. At this rate, your total maturity amount at the end of 5 years can be approximately ₹ 7,49,339. This amount can prove to be a strong source of financial security for you in the long run.
Who can open RD account?
Opening an RD account is easy and secure. Any Indian citizen can open an RD account. In this, employees, businessmen, students and even parents can open accounts in the name of their children. RD account can be opened by going to the post office and for this documents like Aadhaar, PAN and photo are required. Facility to open online account is also available through IPPB. Besides, the option of joint RD account is also available.
Tax and benefits in RD
Tax is applicable on the interest received on RD. TDS is deducted if the annual interest exceeds the prescribed limit, which can be adjusted while filing ITR. Although Section 80C exemption is not available on RD investment, this investment creates a habit of safe and stable savings for you. Like the share market, there is no risk in it and there is no fear of losing money.
Why is RD the best option for investment?
RD is a great way for safe savings. By starting to invest in this, you can create a strong fund of around Rs 7.5 lakh in 5 years. This fund is completely safe with government guarantee. Regular saving also builds financial discipline and in the long run this investment helps in meeting the major needs of your future.
