If the wedding comes a year early
A post office RD runs for exactly 5 years. It can be closed after 3 years, but then interest is paid at the post office savings account rate instead of 6.7%, so part of the interest is lost. If the date is not certain, a bank RD where you choose the tenure can fit better. At 6.7%, a 48-month RD of ₹5,000 would give ₹2,75,679, which is ₹81,150 less than the full 5 years. Only ₹21,150 of that gap is interest, the rest is the last year's ₹60,000 of deposits.
Bank RD rates for these tenures are mostly around 6 to 7% now. These are only examples, what you get depends on the bank. Over 5 years that range means ₹3,50,318 to ₹3,59,664, so where you open the RD moves the result by less than ₹10,000. For Pushpa, being sure of the date matters more than half a percent of rate.
Frequently asked questions
How much is ₹5,000 a month for 5 years in a post office RD?
About ₹3,56,829 at 6.7% compounded quarterly. You pay ₹3,00,000 over 60 months and earn ₹56,829 as interest. The figure assumes every instalment goes in on time.
How much does ₹5,000 a month become in 3 years?
At the same 6.7%, 36 months give ₹1,99,746 from ₹1,80,000 deposited. This is the figure for a 3-year RD that runs its full term. A post office RD closed early at 3 years pays the lower savings rate, so it would give less.
Is RD interest on ₹5,000 a month taxable?
Yes. The ₹56,829 of interest over 5 years is added to your income and taxed at your slab. A post office RD gets no 80C deduction. If your total income stays below the taxable limit, you keep the full interest.
What does a ₹5,000 RD give if I extend it to 10 years?
The post office lets you extend the RD for 5 more years. At 6.7% for 120 months, ₹5,000 a month comes to about ₹8,54,273. You deposit ₹6,00,000 and the interest is ₹2,54,273.
