What Is RD in Post Office? Simple Meaning & Benefits

Want to know what is RD in Post Office and how it helps you save money every month? Here’s a quick and friendly guide for beginners.

RD Full Form & Meaning

RD stands for Recurring Deposit. It’s a small monthly savings plan from India Post. You deposit a fixed amount every month, and earn interest on it.

In short: Save monthly → Get a lump sum at maturity.

Key Benefits (Quick List)

• Start with as low as ₹100 per month
   
• Interest rate is fixed and safe (Govt. backed)
   
• Tenure is 5 years, extendable later
   
• Great for students, housewives, salaried people
   
• Premature closure option available if needed
   

Real-life Example (Very Simple)

Let’s say Riya saves ₹500 every month in a Post Office RD.
At the current interest rate (8.0% approx.), after 5 years she gets around ₹36,000+ back.
Nice return on small money, right?

Small habits grow into real savings.

Who Should Open It?

People who want:

• A safe place to save monthly
   
• Better return than a normal savings account
   
• A habit of regular savings
   

Even parents open RD for kids’ future needs.

Quick Tip

If you miss a deposit one month, you can pay later with a tiny fee. So no stress!