Post Office Recurring Deposit interest rate October-December 2026 announced; check all details

The Post Office Recurring Deposit (RD) rate remains unchanged at 6.7% for the October-December 2026 quarter of FY 2026-27, according to the Finance Ministry. The ministry on Wednesday, September 30, extended the small savings rate freeze to the tenth consecutive quarter.

All small savings schemes rates for October-December 2026

Post Office RD scheme details and returns

The post office RD accepts monthly instalments of ₹100 or more for 60 months, with interest compounded quarterly. It allows premature closure after the account has run for three years.

A loan of up to half the balance can be availed under this scheme after 12 instalments. However, there is tax benefit under this scheme.

At the retained 6.7%:

Following extension after maturity, the account continues to earn the rate at which it was originally opened.

As per the Shyamala Gopinath Committee formula, Post Office RD’s rate is measured against the 5-year G-sec, which averaged roughly 6.5% over the July-September quarter, with the usual 25-basis-point spread. The implied rate is about 6.75%, marginally above the 6.7% actually paid.

The rate applies to the account as opened, so an RD started during the October-December quarter will earn 6.7% over five years no matter what later notifications say. With bank deposit rates having drifted lower through 2025-26 after the RBI's four rate cuts in 2025, the post office's 6.7% remains among the better recurring deposit rates in the market.