Post Office Recurring Deposit interest rate from April 1 announced; here's what you will get

The government has kept the Post Office RD interest rate unchanged at 6.7% for the April-June quarter.

Officially named as the National Savings Recurring Deposit Account (RD), the Post Office Recurring Deposit will continue to offer 6.7% interest per annum on fresh deposits in the April-June quarter.

You can open a post office RD account with as low as ₹100. There is no maximum limit on the amount that you can invest under this scheme.

According to information availavle on the Post Office website, Post Office RD slightly differs from recurring deposits in banks in terms of flexibility. While many banks allow customers to break their RDs at any time, the Post Office Recurring Deposit can be closed prematurely only after three years from the date of account opening.

Advance deposits allowed

You can make advance deposits in a Post Office RD account for any period up to 5 years. The scheme allows loans up to 50% of the deposits at a simple interest of 2% over the applicable interest rate. You can repay the loan as a lump sum or in EMIs.

Deposits under the Post Office RD scheme mature after five years. A person is allowed to extend the RD account in the post office for another 5 years.

The Post Office Savings Account interest rate applies to the deposited amount if an accountholder closes the RD account prematurely, even one day before the date of maturity.

The next review of the Post Office RD account interest rate will be done by the ministry on June 30, 2026.