• How To Open A FD Account in Indian Post Office

    Post Office Time Deposits (POTD), popularly known as Post Office Fixed Deposits are backed by the government. Under this fixed deposit scheme, investors can earn interests of up to 6.7% p.a. the tenures for which you can choose to park your money under this scheme are 1 year, 2 years, 3 years, and 5 years.

    Features of Post Office Fixed Deposit

    The features of Post Office Fixed Deposit can be summed up as follows:

    Investment Tenure 1 year, 2 years, 3 years, and 5 years
    Minimum deposit amount Rs.1,000
    Payment mode Cash, Cheque, and Online Payment
    Interest calculation and credit Annual
    Withdrawal before maturity Allowed; Only after the completion of 6 months
    Special Interest Rates for Senior Citizens Not Applicable
    Tax Benefits under Section 80C Applicable only for 5-year Fixed Deposits

    Post Office Fixed Deposit Interest Rates 2020

    The Government of India (GOI) is responsible for updating the rate of interest for Post Office Fixed Deposits. AS per the latest update, the rate of interests for the Post Office Fixed Deposits are listed below:

    Investment Tenure Interest Rate
    1 year 5.50% p.a.
    2 years 5.50% p.a.
    3 years 5.50% p.a.
    5 years 6.70% p.a.

    Note: The rates of interest mentioned above are recorded as of 10 July 2020.

    Benefits of Post Office Fixed Deposit

    There are a host of benefits which can be enjoyed by investing in Post Office Fixed Deposit. These benefits can be listed as follows:

    • Tax Deducted at Source (TDS) is not chargeable on the interest earned
    • Easy money transferring facility from one post office to another
    • One of the safest investments as it is backed by the Government of India
    • Multiple FD accounts can be opened in any post office across the country
    • Attractive rate of interest
    • Nominal deposit terms wherein minimum deposit amount is Rs.1,000 only
    • Nomination facility available for Post Office Time Deposit (POTD) accounts
    • Joint FD accounts allowed with up to 3 members for each account

    Eligibility Criteria for Post Office Fixed Deposit

    The eligibility criteria for Post Office Fixed Deposit can be listed as follows:

    Who can open the account? Eligibility
    Single adult Should be at least 18 years old
    Minors He or she should be more than 10 years old
    Minors (less than 10 years old) Account can be opened by a legal guardian
    Person of unsound mind Account can be opened by a legal guardian

    Documents requirement for opening a Post Office Fixed Deposit

    The following documents will be required to open a Post Office Fixed Deposit account in any post office across the country:

    Particulars Document Required
    Proof of Identity Aadhaar card, Voter’s ID card, etc.
    Proof of Address Aadhaar card, utility bills (such as electricity bill, water bill), ration card, etc.
    Compulsory Document PAN card
    Photographs At least 2 recent passport sized photographs

    How to apply for and open a Post Office Fixed Deposit?

    You can open a Post Office Fixed in any post office across India using both online and offline methods. Both the methods are discussed below:

    1) Online Method:

    The Post Office Fixed Deposit account can be opened online by using the internet banking facility offered by the post office. The following steps should be followed:

    Step 1: Visit the official e-banking portal of post office at ebanking.indiapost.gov.in.

    Step 2: Use your registered ID and password to log in to the portal.

    Step 3: Click on the ‘Service Request’ option under the ‘General Services’ tab.

    Step 4: Follow the on-screen directions and click on the ‘New Request’ option to initiate the Post Office Fixed Deposit or Time Deposit opening request.

    2) Offline Method:

    Alternatively, you can also visit your nearest India Post branch and collect the form for opening a new Post Office Fixed Deposit account.

    Submit the copies of all the necessary document along with a duly filled up application form. The officials at the post office will guide you with further directions for the process.

    Terms and Conditions in regard to Premature Withdrawal

    Whether the tenure for your Post Office Fixed Deposit account is anywhere between 1 year to 5 years, in case of a premature withdrawal certain rules will be applicable. These rules are being pointed below:

    • A premature withdrawal will not be allowed at least for 6 months from the date of opening the Post Office Fixed Deposit account.
    • The rate of interest applicable on the invested amount will be at par with the Post Office Savings Account in case the withdrawal is made within 6 to 12 months from the date of opening the Post Office Fixed Deposit account.

    Frequently Asked Questions

    1. Can I renew an investment made in Post Office Fixed Deposit account?

      Yes, you will be able to renew your Post Office Fixed Deposit account investment.

    2. How to renew an investment made in Post Office Fixed Deposit account?

      If you do not withdraw the money from your Post Office Fixed Deposit account after the maturity, the account will be renewed automatically. However, it should be noted that the interest rate for the renewed investment will be as per the rate of interest offered by the post office on the day of the renewal.

    3. I’m not an Indian citizen. Am I eligible to open a Post Office Fixed Deposit account?

      No, you are not eligible to open a Post Office Fixed Deposit account. It is open for Indian citizens only.

    4. What is the maximum amount that I can deposit under the Post Office Fixed Deposit scheme?

      There is no upper cap on the deposit amount under the Post Office Fixed Deposit scheme.

    5. Do I have to pay a penalty if I make a premature withdrawal?

      No, you will not be required to pay any penalty in case you make a premature withdrawal. However, if the withdrawal is made within 6 months to 12 months from the date of opening the account, the interest that you will earn will be at par with the post office savings account scheme.

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    Apply for Post Office FD Reviews

    • Post Office Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I was having my savings account from Post office hence i have invested my money into Post office Fixed deposit scheme. I have invested the money of Rs. 25000. There is a lockin period of 10 years. I have invested the money in the year of 2011. Post office service is proper. Overall, I'm happy about the services.
      Was this review helpful? 62
      , chennai
      Reviewed on Feb 25, 2020
    • Post Office
      Post Office Fixed Deposit
      "Good Service"
      0.5 4.0/5 "Great!"
      Interest rate is very low in Indian post office Fixed deposit scheme because they are providing only 8.5%. I have chosen this office because of the child benefits. I have invested the money of Rs. 1.5 years. Its 3 years lock in period. Overall, I'm satisfied with the service provided by post office employees.
      Was this review helpful? 70
      , parvathipuram
      Reviewed on Dec 03, 2019
    • Post Office Fixed Deposit
      "Safety deposit"
      0.5 5.0/5 "Blown Away!"
      I have paid the money of Rs. 4.5 lakhs as a fixed deposit in the Indian post office. For the safety purpose, i have chosen the post office account. They are offering me a interest rate of 7.9%. There is a lockin period of 5 years. If i withdraw the money in 1 year, they will reduce the interest rate of 2% and after 3 years, its 1%.
      Was this review helpful? 130
      , jaipur
      Reviewed on Nov 08, 2019
    • Post Office Fixed Deposit
      "Good for future"
      0.5 3.0/5 "Satisfactory"
      In post office rate of interest is higher for the fixed deposit when compared to the bank, I invested Rs. 5000 on monthly basis its comes in a year Rs. 60,000 after 5 years I got Rs. 3.75,000 I got Rs. 75,000 extra. The service is not comfortable if we have any relative who working there it would supportive or else difficult.
      Was this review helpful? 102
      , burdwan
      Reviewed on Aug 09, 2019
    • Post Office Fixed Deposit
      "Safe and Secured"
      0.5 4.0/5 "Great!"
      My Post office branch is located in own campus hence there is no queue. I opened the fixed deposit, I made one time investment for five years its has tax exemption. They are providing 7% of interest for per annum. I believe it has online access as well.
      Was this review helpful? 60
      , bangalore
      Reviewed on Aug 01, 2019
    • Post Office Fixed Deposit
      "Service needs to be improved"
      0.5 3.0/5 "Satisfactory"
      I do not use Post office service often because its inconvenient and they recently started the debit card service or else we need to visit to the branch for the withdrawing the money in the queue. But Post office fixed deposit interest has more interest, my mother is taking care of it.
      Was this review helpful? 41
      , gurgaon
      Reviewed on Jul 13, 2019
    • Post Office Fixed Deposit
      "Good Experience"
      0.5 4.0/5 "Great!"
      My fixed deposit got matured with Post office, the interest was nominal. The staff are good they gave me good service. There was no online option hence I need to visit for depositing the cash. I invested for five years for fixed deposit, my experience was good.
      Was this review helpful? 53
      , chennai
      Reviewed on Apr 03, 2019
    • Post Office Fixed Deposit
      "Good investment plan"
      0.5 5.0/5 "Blown Away!"
      I have started investing in the fixed deposit almost more than 5 years. I have invested a variable amount in different times. They have offered me a interest rate of 7.5%. The response was good. I have chosen the post office because of the safe and security.
      Was this review helpful? 91
      , guwahati
      Reviewed on Dec 12, 2018
    • Post Office Fixed Deposit
      "Better Investment For FD account in post office"
      0.5 5.0/5 "Blown Away!"
      Earlier I invested in FD at post office, after five year I got the deposit amount with the best interest, payment mode is only cash. For Rs. 10,000 fixed deposit I got around Rs. 15,000 it helped me out. The service is also good in post office, the staff are responding well. Its good for domestic service.
      Was this review helpful? 52
      , bangalore
      Reviewed on Nov 30, 2018
    • Post Office Fixed Deposit
      "Good interest rate"
      0.5 5.0/5 "Blown Away!"
      I have invested the money in post office account recently. I have chosen the post office 5 years back. Its because of the safe and security and elements of the post office. Interest rates are more when i compared with other private bank. I have invested the money of Rs. 1.5 lakhs. Its easy to invest the money. I have a friend who is working over there helped me a lot.
      Was this review helpful? 48
      , chennai
      Reviewed on Nov 30, 2018
    • Post Office Fixed Deposit
      "Need scope of improvement"
      0.5 3.0/5 "Satisfactory"
      Earlier I have taken fixed deposit in Post office, I have deposited the amount of Rs. 8 lakhs, they are providing 8% for interest for the period of one year. Now it came down, the benefits are good but I need to engage with the agent to invest the money in FD. Their service is not upto the mark.
      Was this review helpful? 50
      , hyderabad
      Reviewed on Nov 13, 2018
    • Post Office Fixed Deposit
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I have a Fixed Deposit account with India Post Office from last 1 year, i have invested an amount Rs 1 lac and maturity period is after 5 years. Customer service is very good and they explained all the terms and conditions. I get a returns of 7% and i am satisfied with it.
      Was this review helpful? 43
      , hyderabad
      Reviewed on Sep 26, 2018
    • Post Office Fixed Deposit
      "Needs to improve"
      0.5 2.5/5 "Just OK"
      I have opened a Fixed Deposit with India Post Office from last 3 years, the services provided by India Post office is no up to the mark and their response is always delayed. I am not sure with the amount of investment made. I am not satisfied with the returns of this Fixed deposit.
      Was this review helpful? 55
      , hyderabad
      Reviewed on Feb 05, 2018
    • Post Office Fixed Deposit
      "Good returns"
      0.5 4.5/5 "Excellent!"
      I had a Fixed Deposit with Post Office a few time back, and found the return to be pretty satisfying. I found the overall experience with them to be pretty good and didn't face any issue at all. I found this account to be good return for the investment I made.
      Was this review helpful? 57
      , bhubaneshwar
      Reviewed on Nov 08, 2017
    • Post Office Fixed Deposit
      "Excellent"
      0.5 4.0/5 "Great!"
      I do have the Fixed deposit account with the India post office. Interest rate is more than bankers with them. I would like to say that the customer service is very average one and that has to be get improved more, also they need to work on it.
      Was this review helpful? 31
      , noida
      Reviewed on Sep 28, 2017
    • Post Office Fixed Deposit
      "Post office FD"
      0.5 4.0/5 "Great!"
      Post Fixed Deposit is good, when compared with bank deposit this is the best one. The reason why because if we can with draw from PO any time after one year no charges however when it comes to bank we have to hold up to 5 years,. No charges even if we break it after 1 year they will calculate the interest earned for one year and they will credit the amount. Most of the people are not aware about post office also they dont have online facility and these are all the drawback of Post office.
      Was this review helpful? 68
      , hyderabad
      Reviewed on Dec 29, 2016
    • Post Office Fixed Deposit
      "No waste of time"
      0.5 5.0/5 "Blown Away!"
      Too quick , too easy to open a FD at POST OFFICE. It takes hardly 10 minutes to open this FD. All I had to do is fill the form and they will courier my details to my mailing address. Its a one time visit there is no need for me to visit Post office again for the same purpose. Best of all, they are offering the best interest rate in the market.
      Was this review helpful? 64
      , bangalore
      Reviewed on Nov 25, 2016
    • Post Office Fixed Deposit
      "Not a good"
      0.5 2.0/5 "Expected more"
      I have got the fixed deposit account with the India post office. Interest rate is around 7.5% per annum and its the annual compounding and the total tenure is around twenty years of time and I have maintaining this account for my children future. Customer service is not a responsive one like its very difficult to handle.
      Was this review helpful? 93
      , mumbai
      Reviewed on Apr 26, 2016
    • Post Office Fixed Deposit
      "Excellent !!!!"
      0.5 4.0/5 "Great!"
      Interest rate offered by India post is approximately 6%-7.5% for the fixed deposit for the minimum lock in period of seven years . After five years we will get the lump sum amount. The amount to start the plan is Rs.1000. There is no activation or any maintenance fee.
      Was this review helpful? 59
      , hyderabad
      Reviewed on Mar 19, 2016
    • Post Office Fixed Deposit
      "Interest rate is good comparing to the banks..."
      0.5 4.0/5 "Great!"
      Only reason to go with India Post Office for fixed deposit is the rate as comparatively they are high as the percentage is 8.7%. Very well we can drop the deposit in middle but no idea about the penalty. Very soon they are going to introduce savings account to the people. If we speak about customer service they lack.
      Was this review helpful? 115
      , hyderabad
      Reviewed on Mar 02, 2016
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