If you’re looking for a safe way to build savings every month, the Post Office Recurring Deposit (RD) account could be a smart option.
Backed by the Government of India, this scheme lets you invest a fixed amount every month for five years and earn guaranteed returns.
It is especially useful for people who want to save small amounts regularly without taking any risk.
What Is a Post Office RD Account?
A Post Office RD (Recurring Deposit) account is a savings scheme where you deposit a fixed amount every month for 5 years.
You can start with just ₹100 per month, making it affordable for almost everyone.
The scheme currently offers around 6.7% annual interest, which is compounded quarterly.
Because it is government-backed, your money remains safe while also earning steady returns.
This makes it a good option for small investors, salaried employees, and anyone who wants disciplined savings.
How Does It Work?
The RD account runs for 5 years (60 months).
You choose a fixed amount and deposit it every month.
You can start with ₹100 and increase the amount based on your budget and income.
Interest is added regularly, and over time, both your deposits and interest grow together.
At the end of five years, you receive the total deposited amount along with the accumulated interest — creating a sizeable lump sum from small monthly savings.
Why It’s a Popular Choice
The biggest advantage is safety.
Since it is backed by the government, there is no market risk.
It also encourages regular savings.
Even a small monthly contribution can turn into a meaningful amount over time.
For those who want guaranteed returns without worrying about stock market ups and downs, the Post Office RD remains a simple and reliable savings option.
