Post Office RD Calculator

Above online RD Calculator helps you estimate the returns on RD scheme for 5 years RD and 10 years RD which clearly reflect the power of compounding interest in Post Office.

How is Post Office RD better than other RD?

Post Office RD has tenure of 5 years which is further extendable for another 5 years. The minimum amount for opening RD Account in Post Office is Rs 100/- and there is no maximum limit for RD Account. But the amount must me in multiple of 10 i.e. you cant not open RD Account with Rs 515 as it is not a multiple of 10, instead you must change it to Rs 510 or Rs 520. Once the Account has been opened the amount of monthly deposit can not be changed.
Talking about the benefits of RD Account in Post Office, the first and most valuable thing is that is extendable and can have compounding interest benefits for 10 years. Secondly there is option of partial withdrawal also known as half withdrawal where account holder can withdraw maximum one half of the deposited amount if required.

Types of RD Accounts

Following types of accounts can be opened under the Post Office RD scheme:

1. Single Account
2. Joint Account (upto three adults)
3. Minor Account
4. Account opened by guardian in the name of person of unsound mind

Defaults in Payment of Monthly Installments

RD month for the accounts opened between 1st and 15th of a calendar month shall be from 1st day of that calendar month to 15th day next calendar month and for the accounts opened between 16th to last day of a calendar month, RD month shall be from 16th day of that calendar month to last day of next calendar month. Where a depositor defaults in payment of any RD monthly installment, subsequent installments will be accepted so long as the number of defaults does not exceed four.

What is discontinued RD Account in Post Office?

The Post Office RD account will be a discontinued account if there are more than four RD month defaults. Revival of such account will be permitted only within a period of two RD months from the fourth RD month of default after payment of necessary default fee. If the account is not revived within this prescribed period, it will be treated as discontinued and shall not be permitted to be revived after the said period.

Loan (Half Withdrawal) in Post Office RD Account

Loan restricted to 50 per cent of the balance on the date of application from an account not treated as ‘discontinued’ once in 5 years can be allowed after the account has been in operation for at least one year and 12 monthly installments have been paid. The balance in the account for the purpose of loan on the date of application shall include all deposits including advance deposits. The amount of loan shall be in multiples of ten rupees.

Rate of interest for Loan in Post Office RD Account

The interest for the loan shall be simple interest at the rate of two percentage points over and above the interest rate applicable to the RD account of the loan. The amount of interest recoverable on loan repaid on any one occasion shall be rounded off to the nearest rupee and for this purpose the amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.
Simply if the rate of interest applicable to Post Office RD Account is 6.7% than the interest on Loan / Half withdrawal will be calculated with 8.7 % (6.7 +2) interest rate.

Repayment of Loan (Withdrawal)

When an account holder takes loan against his/her RD Account, he/she will have the option to repay the loan amount with interest, either in the lump sum or in monthly installments. If lump sum option is selected, the loan amount may be repaid in one lump sum along with the interest at the prescribed rate at any time during the currency of the amount.

Extension of Post Office RD Account

On expiry of the period of 5 years from the date of first deposit, the Depositor may close his/her account or may extend his/her account for a further period of 5 years either with deposits or without deposits, by submitting application in prescribed format (SB-EXT1).

Premature Closure of RD Accounts

Premature closure after 3 years from the date of opening of the account is allowed without the depositor requiring furnishing any reason. In no case the premature closure allowed before 3 years.
Simple rate of interest is applicable on premature closure of Post Office Rd Account.

How to use this Calculator?

This Post Office RD Calculator is very simple to use. Just fill the date of opening of RD Account and the monthly deposit amount. Then click calculate and the result will be shown as per the rate of interest applicable on the date of opening itself.
The result will be available for both the five year RD and extend RD (i.e. 10 year RD). So you can compare the values of return for the RD investment in India Post Recurring Deposit Account. The above online Post Office RD Calculator provide precise returns on RD investment in Post Office. The calculation is based on quarterly compounding of interest as per the guidelines and calculation procedure of India Post.

Is there more benefits for senior citizen?

As of now there is no benefits for senior citizen in Post Office RD Accounts. The rate of interest is same for all the customers and resultantly the returns of the RD investment will also be same for all the investors. The complete list of Rate of interest is available here.