Post Office RD Calculator 2025

How to Calculate Compound Interest on Post Office RD?

The components of Post Office RD Calculator are:

1. Deposit Amount - Simply enter the deposit amount you wish to deposit on a monthly basis. The minimum amount that you can deposit is Rs.100. There is no limit on the maximum amount and thus you can enter different amounts to calculate the maturity value you will earn at the end of the tenure.
2. Tenure - You can enter the tenure for which you wish to make your deposit. Generally, the maximum tenure offered by India Post is 5 years.
3. Interest Rate -  You will earn a rate of interest on the amount deposited by you. The rate of interest which you can earn on your deposited amount is up to 6.2%.

Key Features of Post Office RD

1. Eligibility 

1. A single adult can open an account. 
2. A guardian can open a minor's account.  
3. Up to 3 adults can open a joint account, either as Joint A or Joint B.  
4. On behalf of a person of unsound mind, a guardian can open an account.  

1. A minor above ten years old can open an account in their own name. Note: There is no limit on the number of accounts that can be opened. 

2. Deposits

1. An account can be opened by cash or cheque, and in the case of a cheque, the date of deposit will be considered as the date of clearance of the cheque. 
2. The minimum amount for monthly deposits is Rs.100 or any amount above the minimum in multiples of Rs.10. 
3. For accounts opened up to the 15th day of a calendar month, subsequent deposits should be made by the 15th day of each month. For accounts opened on the 16th day to the last working day of a calendar month, subsequent deposits should be made by the last working day of each month. 

3. Default

1. In case the subsequent deposit is not made by the prescribed day for a month, a default charge is applicable. For a Rs.100 denomination account, a default charge of Rs.1 per defaulted month is levied. 
2. If there is a monthly default in any RD account, the depositor first needs to pay the defaulted monthly deposit along with the default fee and then proceed to pay the current month's deposit. 
3. After four consecutive defaults, the account becomes discontinued. However, it can be revived within two months from the 4th default. If not revived within this period, no further deposits can be made, and the account remains discontinued. 
4. If the number of defaults in monthly deposits does not exceed four, the account holder has the option to extend the maturity period of the account by the same number of months as the number of defaults. The defaulted instalments can be deposited during the extended period. 

4. Advance Deposit

1. If an RD account is not discontinued, it is possible to make an advance deposit for up to 5 years in the account. 
2. A rebate is applicable for advance deposits of at least six instalments (including the month of deposit). For a Rs.100 denomination account, the rebate is Rs.10 for a 6-month advance deposit and Rs.40 for a 12-month advance deposit. 
3. The option to make an advance deposit can be exercised at the time of opening the account or at any time thereafter. 

5. Loan

1. Once 12 instalments have been deposited and the account has been continued for one year without discontinuation, the depositor can avail of a loan facility of up to 50% of the remaining credit balance in the account. 
2. The loan can be repaid either in a single lump-sum payment or in equal monthly instalments. 
3. The interest on the loan will be calculated at a rate of 2% plus the RD interest rate applicable to the RD account. 
4. The interest will be calculated from the withdrawal date to the repayment date. 
5. Suppose the loan is not repaid by the maturity date. In that case, the outstanding loan amount plus interest will be subtracted from the maturity value of the RD account. 

6. Premature Closure

1. An RD Account can be closed prematurely after three years from the date of opening by submitting the prescribed application form at the respective Post Office. 
2. If the account is closed even one day before the maturity, the applicable interest rate of the Post Office Savings Account will be applied. 
3. Account's premature closure is allowed after the completion of the period for which the advance deposits have been made. 

7. Maturity

1. The maturity period for an RD Account is five years, equivalent to 60 monthly deposits from the date of opening. 
2. Submitting an application at the relevant Post Office can extend the account for another five years. The interest rate applicable during the extension will be the same as the interest rate during the opening of the account initially. 
3. The account can be closed at any time during the extension period. The RD interest rate will be applicable for the completed years, while for a period less than a year, the Post Office Savings Account interest rate will be applicable. 
4. The RD account can be retained without any further deposits for up to 5 years from maturity. 

8. Repayment in the Event of Account Holder's Death

1. In the unfortunate event of the account holder's death, the nominee or claimant can submit a claim at the respective Post Office to receive the eligible balance of the RD account. 
2. Once the claim is sanctioned, the nominee or legal heirs can continue the RD account until maturity by applying at the relevant Post Office. 

How to Use the Post Office RD Calculator

Given below are the steps you will have to use while using India Post office RD Calculator:

1. There are various third-party websites where you can use the RD calculator facility.
2. Enter the amount you wish to deposit on a monthly basis.
3. Enter the tenure for which you wish to invest in an India Post RD scheme.
4. Enter the rate of interest.
5. Click on Calculate.
6. You will be able to view the maturity amount you will earn based on your deposited amount, the tenure chosen, and the rate of interest you will earn on your amount deposited.

How Interest Calculation Works in Post Office RD

Given below is the formula applied to determine the maturity amount you will earn:

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

1. M = Maturity value
2. R = Monthly deposits to be paid

1. n= Tenure during which the deposit is to be made
2. i= Interest Rate

Also, Check - Post Office FD Calculator

What Are the Factors That Affect Post Office RD Interest Earnings?

The factor that affects Post Office RD interest earnings is the yields from government securities also known as G-sec.

G-sec is issued by both the central government and state governments. These instruments are tradable in nature.

Benefits of the Post Office RD Calculator

Some of the advantages of using the India Post RD calculator are given below:

1. RD Calculator is accurate.
2. It can be used anytime, anywhere.
3. It is a convenient tool to calculate the maturity amount you will earn based on your deposit.
4. You can use the RD calculator tool any number of times to calculate the maturity amount you will earn based on the amount deposited and tenure and rate of interest.

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