India Post RD scheme offers 6.7% interest on monthly savings

The India Post 5-year National Savings Recurring Deposit (RD) scheme offers a government-backed option for regular monthly savings. The scheme currently provides an annual interest rate of 6.7%, which is calculated on a quarterly compounding basis.

Investors can start with a minimum monthly deposit of ₹100. For example, a monthly investment of ₹4,000 over a 60-month period results in a total principal of ₹2,40,000, which could grow to approximately ₹2,85,463 at maturity. For higher-income households, a joint account with a monthly contribution of ₹31,000 could potentially accumulate a fund exceeding ₹22 lakh over the five-year term.

As a government-supported scheme, these deposits carry a sovereign guarantee, providing full security for the principal and interest earned. This distinguishes the scheme from certain bank deposits that may have limited insurance coverage.