how to calculate rd interest in post office?
Hi Sachin,
If you have a Recurring Deposit (RD) in the Post Office, you deposit a fixed amount every month (say ₹1,000) for a fixed period (say 5 years). In return, you earn interest on those deposits. But unlike Fixed Deposits (FDs), here your money is not invested all at once you invest it in small parts every month. That’s why the interest calculation is slightly different.
Check current RD interest rate
The Post Office RD currently offers 6.7% per annum (as of 2025). This rate is compounded quarterly (every 3 months).
Formula used:
M =R[(1+n)n - 1]/1-(1+i)(-1/3)
In this formula m stands for maturity value, R for monthly deposit to be paid, n for tenure, I for interest rate,
Let say, monthly deposit is 1000, Tenure- 5 years and Interest 6.7% per annum
Now, maturity amount= 1000 x [(1+5) x 5-1] /1-(1+6.7%) (-1/3)
Maturity amount = 7,000 X [(1 + 20) X 20 – 1] / 1 – (1 + 0.0145) (-1 / 3)
- Maturity amount: ₹71,366
- Total deposited: ₹60,000 (₹1,000 × 60 months)
The Interest earned will be ₹11,366 (approx).