Build a fund worth lakhs with Post Office RD:Flexible deposits, 6.7% interest, loan facility after a year, start investing with just ₹100

The government has not changed the interest rates on small savings schemes for the October–December quarter (Q4 FY26). This means you will continue to earn the same interest as before. In such a situation, if you are planning to invest in a Recurring Deposit (RD), the Post Office RD could be a suitable option for you. The scheme currently offers 6.70% annual interest. By depositing ₹2,000 every month for five years, you can build a lump sum fund of around ₹1.43 lakh. Here’s everything you need to know about the Post Office RD. First, what is an RD? A Post Office Recurring Deposit (RD) can help you build substantial savings. You deposit a fixed amount every month, usually when you receive your salary, and at the end of five years, you receive a sizable maturity amount. While saving money in a piggy bank does not earn any interest, deposits in an RD generate attractive interest on your savings. Investing ₹1,000 per month for five years will create a fund of about ₹71,000 If you invest ₹1,000 every month in a Post Office RD, the amount will grow to around ₹71,000 at maturity after 5 years, assuming an annual interest rate of 6.7%. Loan Facility on Post Office RD Post Office RD also offers a loan facility, allowing investors to borrow without closing the account. After depositing 12 consecutive monthly installments, you can take a loan of up to 50% of the amount deposited. The loan interest rate is 2% higher than the RD interest rate. For example, if the RD earns 6.7%, the loan will be available at 8.7% per annum, which is lower than most personal loans. Five Key Benefits of Post Office RD 1. Safe Investment: Fully backed by the Government of India 2. Encourages Regular Saving: Monthly deposits help build financial discipline 3. Attractive Returns: Higher interest than most savings accounts 4. Flexible Investment: Start with ₹100 and increase as per convenience 5. Emergency Support: Loan facility without breaking the RD Who Can Open a Post Office RD? Anyone can open a Post Office RD account, including minors. Children aged 10 years or above can operate the account themselves. Up to three individuals can open a joint account, and the scheme is available at all post offices across India. Click here for more information