# Post Office RD Calculator 2021 ★ Invest Rs 1,000 per month to get Rs 69,694 on Maturity

We have designed a simple excel based Post Office RD calculator where you can input the monthly instalment & interest rate and it will calculate the interest earned and maturity value. Post Office like Banks offer Recurring Deposit. The only difference is in banks you can choose tenure depending on our needs but Post Office RD is available for fixed tenure of 5 years. The good thing is the interest offered is generally higher than most government banks

## Post Office RD Calculator

Calculating Post Office RD interest payout or maturity value is bit complicated. Using this calculator, if you invest Rs 1,000 per month at 5.8% interest for 5 years term, the maturity amount would be Rs 69,694.

## How to use Post Office RD Calculator?

As can be seen in the picture above, you need to input the interest rate and the monthly instalment amount. The calculator would give you the maturity amount and also the breakup of Interest earned for 5 years. This part is important as it will help you compute your taxes every year.

#### Calculator for Small Saving Scheme – PPF, SCSS, Sukanya Samriddhi, NSC, Post Office FD/RD/MIS

Small saving scheme sponsored by Government of India like Sukanya Samriddhi Account, PPF, Senior Citizens’ Savings Scheme are quite popular and rightly so because of the safety, higher interest rate offered among other things. We have built calculator for each of them where you can check the maturity amount, loan eligibility, partial withdrawal and more. Click on the links to get the relevant calculator

PPF Calculator

Sukanya Samriddhi Yojana Calculator

Senior Citizens’ Savings Scheme Calculator

NSC Calculator

Post Office Fixed Deposit (Time Deposit) Calculator

Post Office Recurring Deposit Calculator

Post Office MIS Calculator

## How is Post Office RD calculated?

The interest on Post Office Recurring Deposit is compounded quarterly and is computed using the formula below. It looks a bit complex and so you can use the RD calculator.

``````M=R[(1+i) (n-1)]/1-(1+i)(-1/3))

Where, M = Maturity value

R = Monthly Instalment [60 for Post office RD]

N = number of quarters (tenure) [20 for Post office RD]

i = Rate of interest/400``````

## Post Office RD Investment Rules

The tenure for Post Office RD is 5 years which can be extended by another 5 years.

As with all other Small Saving Schemes like PPF, SCSS, Post Office FD rates are also declared every quarter. The Post Office RD Interest Rate for FY 2021-22 (April to June) is 5.8% (Check latest Post Office RD Interest Rate)

The minimum investment amount is Rs 100/month and there is no maximum investment limit (instalment should be in multiples of 5).

There is no limit to the number of RD accounts you can create in post office. Essentially each RD created is like different account.

Premature withdrawal is allowed up to 50% of the balance after completion of 1 year.

## Tax on Post Office RD Scheme

The interest earned is subject to TDS @ 10% if the annual interest paid is more than Rs 40,000 [Budget 2019]. You can fill Form 15G/H in case you are eligible to avoid TDS

The interest received is fully taxable at applicable marginal income tax rates. Effective April 1, 2018 Interest income up to Rs 50,000 is exempted from tax for Senior citizens u/s 80TTB [Budget 2018]

#### How much Taxes you Need to Pay this Year? Download Our Income Tax Calculator to Know your Numbers

Do you know how much tax you need to pay for the year? Have you taken benefit of all tax saving rules and investments? Should you use the “NEW” tax regime or continue with the old one? In case you have all these questions just Download the Free Excel Income Tax Calculator for FY 2021-22 (AY 2022-23) and get your answers.

## Post Office Recurring Deposit Calculator FAQs

### ✅How to use the Post Office RD Calculator?

Just input your monthly investment amount and interest rate. The calculator would give you the maturity amount and the interest earned every year.

### ✅What is investment limit for Post Office Recurring Deposit?

The minimum monthly deposit amount for Post Office RD is Rs 100. There is No maximum limit.

### ✅What is the maturity period for Post Office Recurring Deposit?

The maturity period of Post Office RD is 5 years. The account can further be extended by 5 years by giving an application for the same.

### ✅Does Post Office Recurring Deposit give any tax benefit?

Post Office RD does NOT have any tax benefit.

### ✅Who can open Post Office Recurring Deposit?

Post Office RD can be opened by any resident Indian, single or joint (with up to 3 adults). Account can also be opened for minors above 10 years of age. In case of younger minors, their natural or legal guardian can open account on their behalf.

### ✅What is the interest rate on Post Office Recurring Deposit?

The interest on Post Office RD is reset every quarter. For the July to September 2020 quarter it is 5.8%.

### ✅Can NRIs invest in Post Office RD?

NRIs cannot invest in Post Office RD.

### ✅Can Post Office RD be closed prematurely?

Post Office RD can be closed prematurely on completion of 3 years. The interest rate paid would be same as Post office savings account.

### ✅How many Post Office Recurring Deposit accounts can I open?

There is NO limit on number of RD accounts one can open.

### ✅Can I take Loan against Post Office RD?

Yes one can borrow up to 50% of the deposit amount after completion of 1 year.