5 Year Recurring Deposit (RD) – Indian Post Office

5 Year Recurring Deposit (RD)

Interest Rates

Maturity value from time to time (for denomination of Rs.10/):


Period during which opened    Amount repayable for an account of  Rs. 10/- denomination   
From    To   
01.10.1991    01.09.1993    856.40              
02.09.1993    31.12.1998    833.40              
01.01.1999    14.01.2000    811.15             
15.01.2000    28.02.2001  789.60              
01.03.2001    28.02.2002 758.53              
01.03.2002   28.02.2003 748.49              
01.03.2003   onwards 728.49              


Minimum amount of Deposit is Rs.10.  No maximum limit. Deposit should be made every month within the calendar month.  Default fee is chargeable for delayed deposit at 0.20 P. per month of delay, for Rs.10 Dn. 

Maximum defaults allowed in an account is four (4).  After four defaults the account is treated as ‘discontinued’.   Discontinued account can be revived by paying defaulted deposits, within two months from the fifth default.  If it is not so revived, the account cannot be continued.

For advance deposits, including deposit for current month, rebate is allowed  at the rate:

Denomination Rs.10.        
6 advance deposits…….Re.1/-
12 advance deposits:             4/-

Premature closure is permitted on completion of 3 years from the date of opening.  Interest is to be calculated as per the rules and rate applicable to individual savings account. at the rate applicable to savings account from time to time is calculated and paid.

One withdrawal is permitted from the account on completion of one year from the date of opening, on the conditions that:

  • At least 12 deposits should have been made
  • Account should not have been discontinued one.
  • Amount not exceeding 50% of the balance.
  • Withdrawal may be repaid in one lump or in equal monthly installments.
  • Interest is charged at  15%.

After maturity of the account, it can be continued for a further period of 5 years with or without further deposits.  During this extended period, the account can be closed at any time.  Post maturity interest is paid at the  prescribed rate.

Under the protected savings scheme, on the death of depositor before maturity of the account, the legal heir  is entitled to get full maturity value, subject to the conditions:

  • Age of the depositor at the time of opening should be between 18 and 53
  • Benefit limited to the maturity value of Rs.50 denomination
  • Account should not have been discontinued as on the date of death
  • At least two years should have been completed
  • At least 24 deposits should have been made. 
  • For the first 24 months no default should be outstanding.
  • No withdrawal should have been taken during the first  24 months.

Interest earned  is exempted as per Section 80L of Income Tax Act. ,

Author: admin