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This guide walks you through opening a Post Office RD account, the current post office RD account interest rate, how it compares with a bank RD and how to open one online via IPPB. You’ll find real examples and a quick answer to whether a minor can open one too.
Opening an RD account in post office is one of the simplest ways to build a savings habit without touching the stock market. You commit to a fixed monthly deposit, the rate stays locked for the tenure and at the end of five years you get a guaranteed lump sum. No demat account, no market tracking, just a passbook and a due date.
DID YOU KNOW?
This guide covers eligibility, documents, how to fill RD form in post office, opening online through IPPB and how a post office RD compares with a bank RD, plus real examples so you can picture what your own savings could look like.
A Post Office Recurring Deposit, officially the National Savings Recurring Deposit Account, is a five-year scheme run by India Post. You deposit a fixed sum every month and the balance earns interest, compounded quarterly. At maturity, you receive your total deposits plus interest in one payout.
QUICK STAT
The post office RD account interest rate is 6.7% a year, compounded quarterly, for the current quarter. Once you open your account, your locked-in rate applies for the full five-year tenure. (Source: India Post, 2026)
Here’s how a post office RD stacks up against a typical bank RD.
| Feature | Post Office RD | Typical Bank RD |
|---|---|---|
| Interest rate | 6.7% p.a., fixed for tenure | 6.25% to 7.5% p.a., varies by bank |
| Tenure | 5 years, fixed | 6 months to 10 years, flexible |
| Minimum deposit | ₹100 a month | Usually ₹500 to ₹1,000 a month |
| Premature closure | Allowed after 3 years, lower rate | Usually allowed anytime, with penalty |
| Backing | Government of India | Bank or NBFC, DICGC insured up to ₹5 lakh |
Banks win on flexibility. Post offices win on simplicity and a rate that doesn’t move once you’ve signed up, which matters if you’d rather not track rate updates every few months.
Eligibility is broad. Any resident Indian adult can open an account solo, or jointly with two or three adults. A guardian can open one for a minor and a minor over 10 can run the account themselves. NRIs can’t open a fresh post office RD.
Already hold a post office savings account? Your KYC is on file, so this whole process moves faster.
Visit any post office offering savings bank services, you don’t need one tied to your address. Ask for Form SB-3 (A) at the counter.
Enter your personal details, your chosen monthly instalment and the tenure, five years, standard. Attach self-attested copies of your ID and address proof plus two photographs and carry the originals for verification. Hand over the form with your first deposit, minimum ₹100, multiples of ₹10 above that, no upper limit. You’ll get a passbook recording your account number, deposit amount and due dates. Keep it safe.
PRO TIP
Wondering how to open RD account in post office online? If you already hold a post office savings account with net banking enabled, IPPB RD account opening online is possible through the India Post Payments Bank app or the DOP net banking portal, no branch visit needed for future deposits either.
Here’s something many savers miss. Once your account has run for a year and you’ve paid twelve instalments, you’re eligible for a loan against your RD balance, up to 50% of it. The rate is typically about two points above your RD rate and repayment is flexible since it’s secured against your own savings.
WATCH OUT
A loan against your RD is usually cheaper and faster than an unsecured personal loan and it doesn’t disturb your maturity payout. Premature closure is also allowed after three years, but you’ll earn a lower rate than promised. Interest earned is fully taxable under your income slab, there’s no Section 80C benefit here.
| Saver | Goal | Monthly Deposit | Total Deposited (5 yrs) | Approx. Maturity Value |
|---|---|---|---|---|
| Meera, schoolteacher, Nagpur | Sister’s wedding | ₹2,000 | ₹1,20,000 | ₹1,43,500 |
| Rohan, first jobber, Pune | Laptop upgrade fund | ₹1,000 | ₹60,000 | ₹71,750 |
| Anita, pre-retirement | Low-risk backup savings | ₹3,000 | ₹1,80,000 | ₹2,15,250 |
None of them had to time the market or track anything beyond their monthly instalment, the interest simply compounded quietly in the background.
Committing to more than you can sustain is the top misstep, ₹1,000 a month consistently beats ₹5,000 that lapses within a year. Update your nominee details, especially for joint or minor accounts. Set a reminder for your due date, a missed month adds a small penalty that quietly eats into your returns.
Where possible, link auto-debit from your savings account and consider advance deposits since post office rules give a small rebate for six or more instalments paid in a month.
Prefer a savings option with flexible tenures and rates you can compare across banks and NBFCs? Explore Fibe Fixed Deposits to find a plan that fits your goal alongside your Post Office RD. You can start with ₹1000 only. Book an FD with Fibe today!
₹100 a month, with further deposits allowed in multiples of ₹10 and no upper limit.
It’s 6.7% a year, compounded quarterly, fixed for your full tenure once you open the account.
Yes, if you already hold a post office savings account with net banking active, through the IPPB app or DOP net banking portal.
Yes, a guardian can open and run one for a minor and a minor over 10 can operate the account themselves.
One identity proof, one address proof, two photographs and your first month’s deposit.
A small default fee applies and four consecutive misses can discontinue the account, though it’s usually revivable within two months.
Premature closure is allowed after three years, at a lower interest rate than the full-tenure rate.
Yes, fully taxable as per your income slab, with no Section 80C benefit on the deposits.