Post Office Recurring Deposit interest rate October-December 2026: The Post Office Recurring Deposit (RD) interest rate has remained unchanged at 6.7% for the October-December 2026 quarter of FY 2026-27.
The Finance Ministry announced the decision on September 30, 2026, keeping interest rates on small savings schemes unchanged for another quarter. This means the Post Office RD continues to offer 6.7% per annum, with interest compounded quarterly.
The rate was last increased by 20 basis points, from 6.5% to 6.7%, with effect from October 1, 2023. With the latest decision, the RD rate continues at the same level for the 13th consecutive quarter.
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All small savings schemes rates for October-December 2026
| Small Savings Scheme | Current Interest Rate (October-December 2026) |
|---|---|
| Public Provident Fund (PPF) | 7.1% per annum |
| Senior Citizen Savings Scheme (SCSS) | 8.2% per annum |
| Sukanya Samriddhi Yojana (SSY) | 8.2% per annum |
| National Savings Certificate (NSC) | 7.7% per annum |
| Post Office Monthly Income Scheme (POMIS) | 7.4% per annum |
| Kisan Vikas Patra (KVP) | 7.5% per annum* |
| 1-Year Post Office Time Deposit | 6.9% per annum |
| 2-Year Post Office Time Deposit | 7.0% per annum |
| 3-Year Post Office Time Deposit | 7.1% per annum |
| 5-Year Post Office Time Deposit | 7.5% per annum |
| 5-Year Post Office Recurring Deposit (RD) | 6.7% per annum |
Post Office RD scheme details and returns
The Post Office RD is designed for people who want to build savings through regular monthly deposits. An account can be opened with monthly instalments of ₹100 or more and runs for 60 months, or five years. The interest is compounded quarterly.
The scheme also allows premature closure after the account has completed three years. A loan of up to 50% of the balance can be taken after 12 instalments, subject to the applicable rules.
At the retained 6.7% rate, the approximate maturity values are:
| Monthly instalment | Total deposited over 5 years | Approx. maturity value at 6.7% |
|---|---|---|
| ₹2,000 | ₹1,20,000 | ~₹1,42,700 |
| ₹5,000 | ₹3,00,000 | ~₹3,56,800 |
| ₹10,000 | ₹6,00,000 | ~₹7,13,700 |
This means a person depositing ₹2,000 every month would put in ₹1.2 lakh over five years and could receive about ₹1.43 lakh at maturity. A ₹5,000 monthly deposit would take the total investment to ₹3 lakh, with an estimated maturity value of around ₹3.57 lakh.
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The account can also be extended after maturity. When an RD is continued, the interest rate applicable during the extension is linked to the rate at which the account was originally opened.
How the Post Office RD rate is decided
The interest rate on small savings schemes is reviewed by the government every quarter. The Post Office RD rate is linked to government security yields under the formula associated with the Shyamala Gopinath Committee.
For the July-September quarter, the five-year government security yield averaged around 6.5%. The usual 25-basis-point spread would imply a rate of about 6.75%, but the government retained the actual RD rate at 6.7% for October-December 2026.
This means an RD opened during this quarter will continue to earn the applicable 6.7% rate according to the scheme’s rules, even if small savings rates are changed in later quarters.
The Post Office RD itself does not qualify for a Section 80C tax deduction. The scheme should therefore be viewed mainly as a regular saving option with government-backed interest and a fixed five-year structure.
