The Post Office Recurring Deposit (RD) Scheme 2026 is a government- backed savings scheme that permits individuals to save a fixed amount every month for a period of 5 years. At the end of the term, the depositor gets back his savings, with interest added. This scheme is thus a great fit for people who want to cultivate a habit of steady savings while at the same time receiving risk-free returns.
Key Features of RD Scheme 2026
The scheme has a minimum deposit requirement of ₹100 a month which makes it a nice option for everyone. On the other hand, there is no ceiling limit, so if people can afford it, they can invest even more. The duration is 5 years and withdrawal before the maturity period is permitted under certain conditions.
Interest Rates in 2026
The interest rate for the post office RD scheme in 2026 will be between 6.9% -7.5%, depending on the duration. The same rates apply to both normal citizens and senior citizens. This puts the scheme on par with many bank recurring deposits as far as competition is concerned.
Eligibility and Account Opening
The RD account can be opened by any Indian citizen at the nearest post office. The necessary documents will include identity proof, address proof, and a recent passport-size photo. An account can be opened either singly or jointly; and by minors above 10 years, too, it is possible to have their accounts operated independently.
Benefits of RD Scheme 2026
The Risk Free Returns is the biggest advantage of the Post Office RD Scheme. The Government of India’s backing ensures that there is no loss of money. In addition, deposits up to ₹1.5 lakh per annum qualify for tax deduction under Section 80C of the Income Tax Act. Loans can also be taken against the deposit in case of an emergency which is another plus point for this scheme.
Maturity and Returns
Upon maturity, the depositor gets back the whole amount saved including the interest. Returns are determined by the amount of monthly deposit and the corresponding interest rate. The table below provides an overview of the approximate maturity amounts for various investments at a rate of 7.5%.
| Monthly Deposit | Tenure | Interest Rate | Maturity Amount |
|---|---|---|---|
| ₹1,000 | 5 Years | 7.5% | ₹72,898 |
| ₹5,000 | 5 Years | 7.5% | ₹3,64,490 |
| ₹10,000 | 5 Years | 7.5% | ₹7,28,980 |
Summary
The Post Office RD Scheme 2026 is the ideal option for those seeking a safe and guaranteed savings plan with regular returns. With very small initial deposits, tax exemptions, and government support, it is still one of the most reliable recurring deposit schemes in India. This scheme is a smart and safe investment for the slow and steady-growing wealth kind.