Post Office Recurring Deposit (Post Office RD Scheme) is a popular savings scheme run by the Government of India. This scheme is specially designed for those who want to create a big fund by making small savings. In this scheme, you can get a safe and guaranteed return by depositing a fixed amount every month. Post Office RD Scheme is not only safe, but investors also get attractive interest rates in it.
In 2025, this scheme is in even more discussion because the government has made some changes in it, such as new interest rates, investment limit and maturity period. In this article, we will give every little information related to Post Office RD Scheme 2025 so that you can understand how beneficial this scheme can be for you.
Post Office RD Scheme 2025: What is this scheme
Post Office Recurring Deposit Scheme (RD) is a savings scheme in which you deposit a fixed amount every month and at the time of maturity you get the principal amount along with interest. This scheme is specially designed for the middle and low income group people, who can make small savings regularly.
The biggest feature of this scheme is that your money is completely safe in it because it is backed by the government. Apart from this, you get attractive interest rate in Post Office RD Scheme, which is decided by the government every quarter.
Overview of Post Office RD Scheme 2025
| Speciality | Description |
| Name of the scheme | Post Office Recurring Deposit (RD) |
| Launch Year | 1981 |
| Interest Rate (2025) | 6.5% – 7% (variable) |
| Minimum Monthly Investment | ₹100 |
| Maximum Investment Limit | No Limit |
| Maturity Period | 5 years |
| Premature withdrawal | Subject to certain conditions |
| tax benefit | No |
Post Office RD Scheme 2025: Interest Rate
The interest rate is the most important aspect of this scheme. The interest rate of the Post Office RD scheme is revised every quarter. In 2025, the interest rate on this scheme may range from 6.5% to 7%.
- This interest rate is based on compounding, that is, interest is added to your deposited money every quarter.
- If you invest regularly for 5 years, you can get good returns.
For example: If you deposit ₹1000 every month and assume an interest rate of 6.8%, after 5 years you will get a return of around ₹72,000.
Post Office RD Scheme: Investment Process
Investing in Post Office RD Scheme is very easy. Its process is given below:
- account opening:
- You can open an account by going to any nearest post office.
- Aadhar card, PAN card and passport size photo are required to open an account.
- Minimum Investment:
- You can start with this plan from as low as ₹100 per month.
- There is no maximum investment limit.
- Mode of Payment:
- Can pay via cash, cheque or auto-debit
- Online facilities:
- Now the post office has also started the facility of opening account online and making payments.
Maturity and Premature Withdrawal
Maturity
The maturity period of this scheme is 5 years. That means you will have to pay monthly installments for 60 consecutive months. At the time of maturity you will get:
- Principal Amount
- Interest earned on deposited money
Premature withdrawal
If you need money, you can make a premature withdrawal under certain conditions:
- Withdrawal is possible at least one year after opening the account.
- There may be a small penalty on withdrawal.
Advantages and Disadvantages
Benefits
- Safe Investment: This scheme remains safe as it is completely backed by the government.
- Regular Savings: This is an ideal option for those who wish to make small savings on a regular basis.
- Attractive interest rates: Returns are better due to compounding interest.
- Online Facility: Now it can be managed online also.
Read More: What is a Post Office Savings Account, its eligibility, facilities and how to open an account
Damage
- Lack of liquidity: There is a penalty for premature withdrawal.
- No tax benefits: You do not get any tax benefits in this plan.
- Long term: Maturity occurs only after 5 years.
Post Office RD Scheme vs Other Schemes
| Speciality | Post Office RD Scheme | Bank RD Scheme |
| interest rate | 6.5% – 7% | 4% – 6% |
| Security | High | Medium |
| tax benefit | No | Available in some plans |
| Minimum Investment | ₹100 | ₹500 |
Is Post Office RD Scheme the right choice for you?
This plan could be an ideal choice for people who:
- Want to make small savings regularly.
- Want to keep your money safe?
- Want to get guaranteed returns?
However, if your priority is tax saving or getting higher returns then you should consider other schemes like PPF or mutual funds.
Source & Reference: https://www.ncccc.in/post-office-rd-scheme-2025-update/