Loan Against RD (after 1 year)—Up to 50% of deposits, at 8.70% p.a. (RD rate + 2%), repayable during the term.
Year-by-Year Growth
Year
Invested
Interest
Value
Scheme rules (National Savings RD, 2019)
Earns 6.70% p.a., compounded quarterly, over a fixed 5-year term (60 monthly deposits).
Advance deposits: pay 6+ installments in advance in a month to earn a rebate — ₹10 per ₹100 for 6–11, and ₹40 per 12 (plus ₹10 for a ≥6 balance) for 12 or more.
Premature closure is allowed after 3 years; interest is then paid only at the Post Office Savings rate (4%).
Loan: after 1 year and 12 deposits, borrow up to 50% of the balance at RD rate + 2%.
Up to 4 missed deposits can be made good (₹1 per ₹100 per month revival fee); the account can be extended by 5 more years.
RD interest is fully taxable; the Post Office RD does not qualify for Section 80C.
* Indicative estimate using the current 6.70% rate and quarterly compounding. Actual maturity may vary slightly by rounding and deposit dates.