The Post Office Fixed Deposit Plus Recurring Deposit (FD+RD) scheme is emerging as a preferred investment option for small and medium savers in India in 2025. Literally offering the benefit of both fixed deposit and recurring deposit under one scheme, it gives an impression of being flexible with safety and good returns.
What is the Post Office FD Plus RD Scheme?
FD Plus RD is a combination savings scheme that merges lump sum deposit features of a fixed deposit with the monthly saving features of a recurring deposit. Investors can deposit a certain sum of money upfront, as a one-time FD, and in the meantime, put in a smaller sum monthly as an RD. Thus, the corpus keeps growing gradually with interest compounding and since monthly deposits are guaranteed, disciplined savings are ensured.
Interest Rates and Returns
Generally, in 2025, Post Office FD pays interest between 6.9% and 7.5% per annum, whereas the RD collects interest at the same rate, compounded quarterly. Since it backs by the Government of India, the scheme is a guarantee for returns.
Using an FD plus RD calculator, one can work out the maturity amount concerning the first deposit made, the monthly contribution, and the tenure. Hence, in the example, something higher than disbursing only in FD or RD will accrue from the maturity of a ₹50,000 FD plus ₹5,000 monthly RD over five years.
FD-plus-RD vs NSC
Like NSCs, FD-plus-RD offers flexibility on how one can contribute to the investment and withdraw returns. NSCs conform to a fixed term with a single lump sum; whereas under the FD-plus-RD, one is allowed to make periodic additions in the form of monthly deposits.
It also shows that for many schemes, the combined scheme will generally give a larger effective return on their placement and recurring basis because the combination application of compounding works in favor of both fixed and recurring components.
Why Choose FD Plus RD in 2025
The hybrid solution is for investors aiming for safety, growth, and disciplined savings, while it fits salaried professionals, small investors, and senior citizens who want guaranteed returns capable of being independent of market risks. Being a blend of FD and RD in a single scheme enables the investor to start working for long-term goals such as education, retirement, or major life events in a well-structured way.