# Post Office Recurring Deposit Calculator

Post office recurring deposits (RDs) are a popular savings scheme offered by India Post that provides fixed returns along with capital safety.

To help investors plan their RDs, we (calculator.org.in) provide an online RD calculator on our website. This calculator allows investors to estimate the maturity amount on recurring deposits based on monthly investment amount, tenure, and applicable interest rate.

The online post office RD calculator is a useful tool for quickly calculating returns at different investment levels and tenures. It helps simplify RD investment planning by giving instant results instead of needing complex manual calculations. With its easy inputs and fast computation, the calculator enables investors to optimize their recurring deposit investments.

## Post Office's Recurring Deposit Interest Rate 2023

## How Does a Post Office RD Calculator Work?

## How is Interest Calculated on Post Office RD?

- Every quarter ending March, June, September, and December, interest is calculated on the account balance.
- The annual interest rate is divided by 4 to arrive at a quarterly rate.
- At 6.5% annual rate, the quarterly rate is 6.5/4 = 1.625%.
- Each quarter, the 1.625% quarterly interest is applied to the balance and added to the principal.
- Quarterly compounding ensures interest on interest, leading to higher maturity value.

**Formula For Calculating Post Office RD Maturity Amount**

**For better understanding let's take an example**-

**Monthly Deposit (R)**= ₹5,000

**Tenure (n)**= 10 years = 40 Quarters

**Interest Rate (i)**= 6.5% = 0.01625 (6.5/400 for quarterly rate)

**Putting these values into the above formula:**

**₹8,44,940**.

## Key Benefits of Using RD Calculator

- Fast computation instead of complex manual calculation
- Accuracy by avoiding errors in manual math
- Planning by testing different deposit amounts and tenures
- Free online access available 24x7

## Eligibility for Opening Post Office RD Account

- Indian Nationals who are over the age of 18 years.
- Minors who are over the age of 10 years.
- Parents or guardians who wish to open and operate the account of a minor on their behalf.
- Indian nationals above the age of 18 years would be deemed eligible to operate an RD account in the Post Office either singly or jointly.

## Documents Required to Open an RD Account

- A post office account-opening form
- Two photographs (passport size)
- Address and identity proof such as Aadhaar, passport, PAN card, or declaration in Form 60 or 61 as per the Income Tax Act, 1961, driver's license, voter’s identity card, or ration card.
- Identity proof for verification purposes at the time of opening the account
- Select a nominee and the signature of a witness to complete the formalities