Indian Post Office Fixed Deposit Interest Rates

Department of Posts is the backbone of communication structure in India from about 150 years and it has contributed in making the lives of people easy with delivery of mails, offering life insurance covers, Small Saving Schemes etc. There is 1, 55,015 Indian post offices, hence it reaches a very wide distribution circle.

At loanbaba.com, we will share updated information about best fixed deposit rates, FD India schemes of the bank and Indian Post Office FD rates over all tenures for fixed deposit and term deposit. You will also come to know about popular FD rates, India by the bank for 2017 and FD interest rates that are the highest.

The Savings Scheme in the Post office provides a PO Savings account, a Time deposit account, a Senior citizen savings scheme a five years PO Recurring deposit account, a PO monthly income account scheme, Sukanya Samriddhi accounts, a fifteen years Public Provident fund account, Kisan Vikas Patra and National savings certificates.

  • Time deposit account is eligible to be opened for five years.
  • A time deposit account can be transformed to a joint account or vice versa.
  • Even a minor (ten years or above) is eligible to open and handle the account.
  • One can open as many accounts as needed at any post office.
  • Two adults can open a joint account.
  • Rs. 200 is the minimum deposit, and there is no maximum limit.
  • Under the Section 80C of Income Tax of India, 1961, investments under five years get tax benefits & deductions.
  • Fixed deposits are feasible for five years.
  • A time deposit can be opened for at least a year.
  • Accounts get renewed automatically on maturity, for the tenure they were opened.
  • There is easy portability of the accounts to any other post office and any number of deposit accounts can be opened.
  • NRIs are not eligible to invest in time deposit schemes.

Rate of interest for time deposits in post office for different time periods -

One year: 7.10%

Two years: 7.20%

Three years: 7.40%

Five years: 7.90%

However no special interest rates are provided to senior citizens and there is no bar on the amount to be deposited or on how many times a deposit account can be opened by anyone.

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