Indian Post Office Fixed Deposit Interest Rates

Indian Post Office Fixed Deposit Interest Rates Details Updated on
Tenure Interest Rate
7 days to 1 year 5.50%d
1 year 1 day to 2 years 5.50%
2 years 1 day to 3 years 5.50%s
3 years 1 day to 5 years 6.70%

Indian Post Office Fixed Deposit Interest Rates range between 5.50% and 6.70%. Senior citizens may earn higher rates – 0.25% to 0.50% additional on existing rates. The tenure of the Fixed Deposit (FD) is from 7 days to 5 years. The schemes come with a fixed rate of interest and earning. So, you can consider Post Office FD plans for safe and secured investment. You will also receive an insurance cover on the deposited amount up to a limit.

In this post, we will discuss Indian Post Office FD Interest Rate features, details about National Savings Time Deposit Account, loan against FD, most feasible plans, application procedure, documents required, and frequently asked questions.

Features of Indian Post Office FD Rates

Here are the features:

  • You can deposit as less as Rs. 1,000. There is no upper limit to the deposit amount.
  • Tenure of the Post Office Fixed Deposit is between 7 days and 5 years.
  • The most popular scheme is the National Savings Time Deposit Account.
  • The range of interest rate per annum is from 5.50% to 6.70%. It is the Government of India that decides the Indian Post Office Fixed Deposit Interest Rates on a regular basis.
  • You can choose to apply for a loan against FD to fulfil any cash liquidity. For this, you do not have to break the fixed deposit.
  • You will receive facilities such as nomination and auto-renewal.
  • The deposits of up to Rs. 5 lakhs are covered under the RBI’s Deposit Insurance Scheme, insured by the DICGC.

About National Savings Time Deposit Account

Here is the complete information about FD scheme Post Office:

  • This Indian Post Office scheme is by the Department of Post Ministry of Communication Government.
  • It comes with tax saving benefits as per the conditions under the Section 80C of the Income Tax laws. The tenure of such a deposit has to be 5 years.
  • It is a lump-sum investment plan, where you have to make a one-time deposit at an applicable interest rate for a fixed tenure. The period of the plan is between 1 month to 5 years.
  • You can open the account by cheque or cash.
  • Those eligible to open the account are single adults, maximum 3 adults for a joint account, and minors over 10 years of age. The minor’s account is in the name of the guardian. This person must be of a sound mind.
  • The option for account opening is available for any Indian citizen who is 18 years of age and above.
  • Even minors can open an account, but the same is convertible to his/her name only after attaining 18 years of age.
  • You can transfer your Post Office FD Account from a post office to another one.
  • The interest is paid annually. There is no maximum limit on the amount you wish to deposit in the FD account. But the minimum amount for the deposit is Rs. 1,000 that too in the multiples of Rs. 100.
  • You cannot make a premature withdrawal in the initial 6 months. You will receive the payable interest if you withdraw between after the first 6 months and till 12 months from the account opening date.

Loan against FD Indian Post Office

You can also choose to take a loan on the Indian Post Office FD.

  • The maximum tenure of the loan is the maturity date of the FD.
  • The applicable rate on the loan is 6.5% to 7.7%.
  • The maximum loan amount offered against the fixed deposit depends on the decision of the authorities.

Most Lucrative FD Scheme by the Indian Post Office

Before you invest in the Indian Post Office FD scheme, you must know the varying tenures and the corresponding interest rates. This will give you an idea as to which scheme will provide you the highest return. For instance, the tenure of 3 years 1 day to 5 years provides the highest rate at 6.70% per annum. But if you are not into long-term deposits, then you may look for a short-term scheme.

The interest rate for short-term schemes is 5.50%. The tenure for the same is 7 days to less than 365 days. Remember that the interest on the FD is applied at the time of maturity. Senior citizens may get an additional 0.25% to 0.50% on the standard rates.

How to Open Indian Post Office Fixed Deposit Account?

Here are the relevant steps:

  • You can open the FD account online by visiting the official website of the Indian Post Office.
  • Select the ‘Fixed Deposit’ option from the menu.
  • Now type the FD you wish to open.
  • To select the Fixed Deposit scheme, click ‘Proceed’.
  • If you are a senior citizen (over 60 years of age), then select the option ‘Senior Citizen’.
  • Enter the deposit amount, choose the tenure, and frequency for the interest pay-out.
  • After checking the terms and conditions, click ‘Submit’ to open the FD account.

Documents Required to Open Post Office FD Account

Here are the documents you need to open the FD account:

  • You need to provide your basic KYC documents.
  • Submit a government-recognized age proof and identity proof.
  • Also, provide your passport-size recent photographs.
  • You may also have to submit your bank account details.
  • KYC documents and Passport size photos
  • Age proof (Birth certificate, matriculation certificate, etc,)
  • Passport size photographs
  • Bank A/c details

Indian Post Office Fixed Deposit Interest Rates FAQs

Here are the frequently asked questions:

You can add a nominee to the FD account. The nomination comes into effect on the event of the depositor’s death before the fixed deposit matures. You can add only 1 nominee when opening the Indian Post Office FD account. At the time of claim, the nominee has to provide his/her identification proof.

The FD comes with fixed tenure as per the one you selected during the account opening. You cannot alter or change this tenure. But if you want, you may close the existing FD, and open a new one of a different or desired tenure of your convenience.

Though premature withdrawal will lead to imposition of a penalty by the Post Office, the option for withdrawal before maturity is available. The regulations regarding the penalties may change from time to time.

You can opt for monthly interest on the FD. Here, the Post Office pays you the accrued interest every month. This acts as a regular income, and keeps your investment intact.

Yes, you must submit a copy of your PAN Card during the account opening at the India Post Office. If you do not do so, then TDS deduction happens at the rate of 20% instead of 10% as per the Section 206AA. Also, the Income Tax Department will not credit the TDS. Nor will it issue any TDS certificate. Penal TDS will apply and exemptions such as Form 15G/H will remain invalid.