Hello Sir. I have been investing Rs. 1500/- per month in Post office RD since about 58 months with the tenure getting over in 2 months. I used to get a confirmation sms from Post Office department every month on investing. But the balance in the sms showed only the amount invested. Never did it show the amount with the interest or the interest on the amount invested. For example it shows only invested amount of Rs. 87000/-. Post Office RD interest is calculated quarterly. With changes on interest rate in last years how will I come to know about the interest earned every year? How to know how much interest I earned on my investmenst?

Ans: You are investing Rs 1500/month in Post Office RD for 60 months. The current balance shows only the total invested amount. You want to know how to check the total interest earned.

Let’s understand this clearly and solve it fully for you.

How Post Office RD Interest Works
Post Office RD gives quarterly compound interest.

The rate changes every quarter by the government.

But for your RD, the rate is fixed on opening date.

So your entire 5-year RD will earn the same rate.

Even if interest rate changes later, your RD stays locked.

Why You Receive SMS With Only Invested Amount
The SMS system only updates with fresh deposits.

It does not show the interest earned in each message.

That’s why total balance seems lower than actual maturity value.

What Is Your Total Invested Amount
You invested Rs 1500 per month for 58 months.

Total amount invested = Rs 87,000 (as per SMS).

How To Know Interest Earned
There are two methods to know the interest earned:

1. Visit Post Office With Passbook
Go to your branch with your RD passbook.

Ask them to print or update your RD passbook.

It will show all entries and interest added quarterly.

You can see total interest credited till date.

2. Check Online (If Account Linked)
If your RD is linked to India Post internet banking, login there.

Go to the RD section.

It will show the total interest earned till now.

Some accounts are not online yet. Then use passbook method.

Approximate Estimate For You
If your RD started around 5 years ago, rate was about 7.1%.

On Rs 87,000, you may get Rs 17,000 to Rs 19,000 as interest.

Total maturity amount may come to Rs 1,04,000 to Rs 1,06,000.

Exact amount will be given by Post Office after maturity.

How Interest Is Calculated
Interest is compounded every 3 months.

Every quarter, interest is added to the principal.

That’s how your returns grow faster over time.

The formula is fixed and applies from the date of opening.

Why RD Passbook Is Very Important
It shows correct principal and interest.

SMS does not show full picture.

Online account may have delays.

Use updated passbook for tax or financial planning.

Taxation Of RD Interest
RD interest is fully taxable.

It is added to your income every year.

Post Office may not deduct TDS.

But you should declare it in ITR.

What To Do After Maturity
Collect full maturity amount.

Do not reinvest in another RD blindly.

Instead, invest in better growth options.

Better Option Than RD After Maturity
Mutual Funds via SIP are better for long-term.

You can get higher returns with proper asset allocation.

Don’t use direct plans.

Take help of CFP-qualified MFD to plan it properly.

Actively managed funds do better than index funds.

RD gives fixed low returns. MF grows your money faster.

Future Actions You Must Take
Go to Post Office after 60 months.

Ask for maturity value in writing.

Confirm interest amount earned.

Decide whether to withdraw or reinvest.

For kids' education, SIP is better than RD.

Start small SIP with Rs 2000 every month.

Simple Tips For You
Always ask for interest slips yearly from Post Office.

Keep track of total investment with a notebook.

Never rely only on SMS for financial planning.

Don’t wait till last month to check maturity.

Plan what to do with the money at least 1 month in advance.

Final Insights
Your RD has worked safely for 5 years. But now, it’s time to upgrade.

You must move from fixed interest products to growth investments.

A good SIP for education, retirement, and future goals is must.

Your RD interest is easy to find — either online or by passbook.

After maturity, don’t continue in RD again. Money will sleep there.

Let your money grow, not sleep.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment