In today’s fast-paced life, financial security has become a necessity—be it for children’s education, buying a house, wedding expenses, or retirement. Many people look for an investment option that is risk-free yet rewarding. For such investors, the Post Office Recurring Deposit (RD) Scheme is an excellent choice.

What is the Post Office RD Scheme?

The Post Office RD is a government-backed savings plan, making it one of the safest investment options. You deposit a fixed amount every month, and the account earns compound interest every quarter. This accelerates the growth of your savings.

How You Can Save ₹7 Lakh in 5 Years

• Minimum monthly deposit: ₹100

• Example: If you deposit ₹10,000 per month for 5 years, your total investment will be ₹6,00,000.

• With 6.7% annual interest (compounded quarterly), your maturity amount will be ₹7,13,659.

• That means you earn ₹1,13,659 as interest—absolutely risk-free.

The scheme initially runs for 5 years, but you can extend it for another 5 years, allowing you to build an even bigger fund over time.

Current Interest Rate

For July–September 2025, the RD scheme offers 6.7% annual interest, reviewed by the government every quarter.

Loan Facility in Emergencies

If you face a sudden financial need, you can take a loan of up to 50% of your deposited amount after one year. However, this loan will attract an interest rate 2% higher than your RD rate.

Why It’s Attractive

• Guaranteed by the Government – zero risk

• Small deposits possible – start with just ₹100

• High flexibility – extend beyond 5 years

• Liquidity option – loan facility available

The Post Office RD scheme is ideal for middle-class families, salaried individuals, and anyone looking for safe savings with assured returns.