The Post Office Time Deposit Account (TD) or Post Office Fixed Deposit (FD) is an investment opportunity availed under Post Office Savings schemes. The tenure periods of this term deposit are 1 year, 2 years, 3 years and 5 years. The Post Office FD rates start from 7.00% p.a. to 7.80% p.a.
Best Post Office FD RatesThe table below contains fixed deposit interest rates in post office.
|Tenure||Post Office FD rates (p.a.)|
*The Post Office Fixed Deposit interest rates are subject to change. The FD rates mentioned above are valid as 01 August 2019.
The highest rate of interest offered on Post Office Time Deposit is 7.70% p.a. for a tenure of 5 years.
Rates For Tax Saving Post Office 5-year Fixed Deposit
The 5-year Post Office Fixed Deposit comes with tax benefits under Section 80C of the Income Tax Act 1961.
The rate of interest* for 5-year Post Office FD:
|Tenure||Regular Post Office FD rates p.a||Senior Citizens Post Office FD rates p.a)|
*The Post Office Time Deposit interest rates are subject to change. The rates of interest mentioned above are valid as 01 August 2019.
Highlights of Post Office FD Rates
- Highest Post Office TD interest rate: 7.80% p.a. for a tenure of 5 years
- Range of interest rates: 7.00% p.a. to 7.80% p.a.
- Interest rate for a tenure of 1 year: 7.00% p.a.
- Rate of interest for a maturity of 2 years: 7.00% p.a.
- FD rate for a maturity period of 3 years: 7.00% p.a.
Features Of Post Office Fixed Deposit Scheme
- Minimum amount of deposit for Post Office TD: Rs.200
- No upper limit on the investment amount
- Interest payout frequency: Yearly
- Maturity periods available: 1 year, 2 years, 3 years and 5 years
- Interest is calculated on a quarterly basis
- Premature withdrawal is allowed after completing 6 months of the maturity period.
- FDs with a tenure of 5 years is eligible for tax benefits as per Section 80 C of the Income Tax Act, 1961.
- Deposits can be made in cash or cheque
- You can avail the nomination facility either while creating the account or at any point during the tenure of the deposit.
- Account is transferrable between post offices
- No limit on the number of accounts that can be created in the post office
- Can be maintained as a joint account between 2 adults
- A joint account can be converted into a 'single account' and vice versa.
- When an accountholder who is a minor legally becomes an adult, they need to request a conversion
- Minors who are of the age 10 and above can maintain a TD account
- Upon maturity, FDs get automatically renewed for a period which is equal to the original tenure.
Categorization Of Post Office FD Applicants
The applicants for the Term Deposit scheme are divided into three categories based on the total savings in all their individual savings accounts.
- Low Risk: Net balance is up to Rs.50,000
- Medium Risk: Total balance is above Rs.50,000 to Rs.10 lakh
- High Risk: Sum balance is above Rs.10 lakh
Post Office FD calculator
- To know how much you will earn on a Post Office Fixed Deposit, use an online calculator.
- Calculate the exact maturity value of an FD by entering details such as amount invested, rate of interest, tenure of investment and type of interest compounding frequency.
- For example, if you are investing Rs.1 lakh for a period of 5 years in a Post Office FD, the total interest earned will be Rs.7,800 and the maturity value of the deposit will be Rs.1,07,800.
KYC Documents To Submit During Post Office TD Application
- Applicant must submit attested photocopies of the following documents.
- Identity proof (any one)
- Aadhaar Card
- Electoral ID Card
- Ration Card
- Driving License
- Post Office ID Card
- Government-issued ID Card
- Pension Payment Order (if applicable)
- Below Poverty Line (BPL) Card (if applicable)
- MGNREGA Card (if applicable)
- ID Card issued by a valid educational institute
- Permanent Account Number (PAN) Card (for medium-risk and high-risk customers)
- Residential proof (any one)
- Passbook issued by a bank or Post Office
- Ration Card
- Aadhaar Card
- Electricity or Telephone bills (< 3 months old)
- Salary slip issued by employer
- Certificate issued by a Branch Postmaster/Gram Dak Sewak Delivery Agent/Public Authority/Postman
- In case of joint accounts, both the account holders must submit their respective ID and residential proofs.
- 1 recent colour passport-size photograph of the applicant
- 2 recent colour passport-size photographs, in case of Extra Departmental Branch Office (EDBO)
Eligibility Criteria To Apply For Post Office Time Deposit scheme
- All citizens of India who have attained the legal adult age
- Minors of the age 10 and above
How Does Nomination Work For Post Office Time Deposit Scheme?
- Upon the death of the depositor, only the appointed nominees or the legal heir can claim the FD returns
- In the absence of nomination, the legal heir must submit the following:
- Death Certificate of the depositor
- Form SB84
- A letter of consent signed by all the respective legal heirs
- A claim up to a maximum amount of Rs.1 lakh will be settled
- A claim higher than Rs.1 lakh would require legal documents such as the will of the depositor.
- In case of nomination, the beneficiary must submit the required form and the death certificate of the account holder.
FAQs About Post Office Time Deposit Scheme
- How to apply for the Post Office FD scheme?
The following documents need to be submitted to open a Post Office TD:
- Specimen Signature slip for the Time Deposit
You can either request a transfer of TD either through a written application or the form SB10(b).
You must make an investment of at least Rs.200 in order to operate a Post Office Time Deposit account.
Yes, you can prematurely withdraw from the TD account only after the completion of 6 months of the FD tenure.
The highest Post Office TD rate is 6.80% p.a. for a tenure of 5 years.
The tenures available for Post Office TD are 1 year, 2 years,3 years and 5 years.
Yes, as per Section 80C of the Income Tax Act, 1961, you can get tax deductions for a Post Office TD with a maturity period of 60 months.
You must submit your PAN if you fall within the high-risk or medium-risk category. In the absence of a PAN card, you are required to submit Form 60 or 61.
Also know about: PO Monthly Income Scheme