Post Office Plan Offers Monthly Income Earners a Chance to Save Rs 138 Daily and Earn 2.83 Lakhs


Post Office Recurring Deposits have emerged as an attractive investment avenue due to the recent hike in interest rates during the July-September quarter. With the interest rate increased from 6.20 percent to 6.50 percent, individuals can now enjoy higher returns on their investments. This article explores the various aspects of Post Office Recurring Deposits, including eligibility, deposit requirements, tenure, and the potential returns one can expect. By understanding the nuances of this investment scheme, individuals can make informed decisions to maximize their savings.

Eligibility and Account Opening:

One of the notable advantages of Post Office Recurring Deposits is that they are accessible to individuals of all age groups. Parents can open accounts in the name of children below 10 years of age, while those above 10 years can open accounts in their own name. Moreover, individuals are also allowed to have multiple accounts, enabling them to diversify their savings. The initial deposit amount required to open an account is as low as Rs. 100, making it an affordable investment option for many.

Deposit Requirements and Flexibility:

To initiate a Post Office Recurring Deposit, individuals must deposit a minimum of Rs. 100 per month. There is no limit on the number of monthly deposits, allowing investors to contribute any amount as long as it is in multiples of Rs. 10. To ensure timely payments, individuals who open their accounts before the 15th of the month must make monthly installments before the 15th. Others have until the end of the month to deposit their contributions.

Tenure and Extension:

The tenure of a Post Office Recurring Deposit is fixed at 5 years. Upon maturity, investors have the option to extend the deposit for an additional 5 years by filling out Form-4 and submitting it to the post office where the account is held. During the extended term, the interest rate remains the same as when the investment was initiated. Importantly, extended term deposits can be withdrawn at any time, offering individuals flexibility in managing their finances.

Returns on Investment:

With the current interest rate of 6.50 percent, investors can expect substantial returns on their Post Office Recurring Deposits. Let’s examine the potential returns for different monthly deposit amounts:

1. Investing Rs. 2,000 per month:

Investors who deposit Rs. 2,000 per month can accumulate Rs. 1,41,983 over the 5-year tenure. To achieve this, setting aside a mere Rs. 66 per day is required. The total deposit made over the 5 years amounts to Rs. 1.20 lakhs. Upon maturity, investors will receive Rs. 1,41,983, which includes an interest amount of Rs. 21,983.

2. Investing Rs. 3,000 per month:

For those who deposit Rs. 3,000 per month, the potential returns from Post Office Recurring Deposits amount to Rs. 2.12 lakhs. Saving just Rs. 100 per day is sufficient to meet this monthly deposit requirement. The total investment over the 5-year period will be Rs. 1.80 lakhs. Upon maturity, investors will receive Rs. 2,12,971, which includes an interest amount of Rs. 32,972.

3. Investing Rs. 4,000 per month:

Investors who contribute Rs. 4,000 per month stand to gain significant returns of approximately Rs. 2.83 lakhs. Setting aside only Rs. 133 per day will enable individuals to meet this monthly deposit requirement. The total investment over the 5-year tenure will amount to Rs. 2.40 lakhs. Upon maturity, investors will receive Rs. 2,83,968, which includes an interest amount of Rs. 43,968.


Post Office Recurring Deposits provide individuals with a secure and profitable investment avenue. With the recent hike in interest rates, these deposits have become even more attractive for individuals looking to grow their savings over a fixed tenure. The flexibility in account opening, deposit requirements, and the option to extend the tenure make it suitable for investors of all ages. By considering the potential returns based on different monthly deposit amounts, individuals can make informed decisions and benefit from the financial stability offered by Post Office Recurring Deposits.

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