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.
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.
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.
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
Sukanya Samriddhi Yojana Calculator
Senior Citizens’ Savings Scheme Calculator
Post Office Fixed Deposit (Time Deposit) Calculator
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
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.
There is penalty for missed installment and incentive for advance payments.
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]
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.
Just input your monthly investment amount and interest rate. The calculator would give you the maturity amount and the interest earned every year.
The minimum monthly deposit amount for Post Office RD is Rs 100. There is No maximum limit.
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.
Post Office RD does NOT have any tax benefit.
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.
The interest on Post Office RD is reset every quarter. For the July to September 2020 quarter it is 5.8%.
NRIs cannot invest in Post Office RD.
Post Office RD can be closed prematurely on completion of 3 years. The interest rate paid would be same as Post office savings account.
There is NO limit on number of RD accounts one can open.
Yes one can borrow up to 50% of the deposit amount after completion of 1 year.
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