Listed in the table below are the interest rates offered by India Post of fixed deposits depending on the tenures.
Deposit Tenure
Post Office FD rates (p.a.)
1 year
5.50%
2 years
5.50%
3 years
5.50%
5 years
6.70%
*The Post Office Fixed Deposit interest rates are subject to change. The FD rates mentioned above are valid from 1 April 2020 to 30 June 2020.
Rates For Tax Saving Post Office 5-year Fixed Deposit
The tax saving fixed deposit offered by India Post has a tenure of 5 years. You are eligible to avail tax benefits under Section 80C of the Income Tax Act, 1961 in case you open a tax saving FD with them. India Post offers you an interest of 6.70% p.a., for opening a FD having a tenure of 60 months i.e. 5 years.
Tenure
Regular Post Office FD rates (p.a)
Senior Citizens Post Office FD rates (p.a))
60 months
6.70%
7.40%
*The Post Office Fixed Deposit interest rates are subject to change. The FD rates mentioned above are valid from 1 April 2020 to 30 June 2020.
The Post Office Time Deposit Account (TD) or Post Office Fixed Deposit (FD) is an investment opportunity that can be availed under the Post Office Savings schemes.
You can choose a tenure depending on the goals you want to achieve. The government-operated postal system in the country offers you a variety of tenures and the rate of return on them goes up to 6.70% p.a.
The minimum amount for which you can open an Fixed Deposit account with India Post is Rs.100. There is no cap on the maximum amount.
Highlights of Post Office FD Rates
Highest Post Office TD interest rate: 6.70% p.a. for a tenure of 5 years
Range of interest rates: 5.50% p.a. to 6.70% p.a.
Interest rate for a tenure of 1 year: 5.50% p.a.
Rate of interest for a maturity of 2 years: 5.50% p.a.
FD rate for a maturity period of 3 years: 5.50% p.a.
Post Office FD calculator
To know how much you will earn on a Post Office Fixed Deposit, use an online FD 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.40,000 and the maturity value of the deposit will be Rs 1.4 lakh.
FAQs About Post Office Time Deposit Scheme
What are requirements for opening a term deposit with India Post?
The requirements for opening a term deposit with India Post are as follows:
SB3
SB103 (pay-in-slip)
Specimen Signature slip
How to transfer my TD account from one Post Office branch to another?
You can request either through a manual application or by using the prescribed SB10(b) form.
Can I prematurely close my Post Office Term deposit account?
Yes, you can prematurely close the term deposit account. However, to do so the account should be active for a minimum period of 6 months.
Is there a cap on the maximum amount that can be deposited in a term deposit account opened with India Post?
No, there is no cap on the maximum amount that can be deposited in a fixed deposit account opened with India Post.
Can I avail tax exemptions on any of the Post Office TD tenures?
No, you can’t avail tax exemptions on any of the Post Office TD tenures. Tax exemptions are provided only on the tax saver FD which has a tenure of 5 years.
What is the minimum balance required to be kept in a term deposit account?
The minimum balance required to be kept in a term deposit account is Rs.200.
India Post offers interest rate to the tune of 7 - 7.8% on term deposits
India Post, which operates a network of more than 1.5 lakh post offices provide customers with four different lock-in periods for fixed deposits. The interest rate offered on the fixed deposits is in the tune of 7 -7.80% per annum. A fixed deposit can be opened for a minimum amount of Rs.200.
The one-year, two-year, and three-year term deposit have no upper limit when it comes to investment, while the five-year fixed deposit allows a maximum amount of Rs.1.5 lakh per year.
It needs to be mentioned here that individuals who invest in the five-year term deposit qualify for income tax benefit under Section 80C of the IT Act.
2 May 2019
Will Investors Choose Post Office Savings Schemes Over Bank Fds Because Of Increased Interest Rates?
The recent hike in interest rates of post office small savings schemes has made them a viable mode of investment. The difference between interest rates of term deposits or Fixed Deposit schemes offered by banks and small savings scheme is around 50 basis points. Despite higher returns, investors appear to be hesitant to opt for small savings schemes instead of Fixed Deposits (FDs) by commercial banks.
Experts believe that additional features such as loans, credit cards and balance transfers make banks more attractive than post office financial services. Factors such as Jan Dhan bank accounts and India Post Payments Bank are set to further decrease the popularity of small savings schemes. Hence, the increase in rates by small savings schemes would not necessarily drive customers to shift their investment schemes from banks.
24 October 2018
Key features of Indian Post Office Payments Bank
India Post Payments Bank is the latest addition to the existing payments bank (PB) nationwide. Other PBs include Airtel Payments Bank, Paytm Payments Bank, Aditya Birla Idea Payments Bank, Fino Payments Bank and Jio Payments Bank. The objective of this model is ‘financial inclusion’ of more than 19% of the current population which does not have access to banking services. The services offered by a payments bank involve depositing up to Rs.1 lakh into current or savings account, withdrawal or deposit of money and other remittance-based operations.
One cannot get credit from a payments bank. Products such as loans and insurance are provided after collaborating with other financial institutions. Most of the services can be accessed through respective mobile phone apps.
One can open an account within a PB by entering the required KYC details along with the Aadhaar Card into the mobile app. PBs have multiple access points at convenient locations across the country. This makes them easily accessible for the general public. Recently, there was a decline in the interest rates of a majority of PBs to 4%. However, these rates are higher than the typical 3.5% offered by traditional banks. One does not have to hold a minimum balance within a PB.
7 September 2018
Special schemes offered by Post Office
There are a number of attractive schemes offered by the Post Office in the country. The 5-year Post office Time Deposit scheme pays a high interest rate of 7.6% per annum.
For an investment tenure of 3 years, the rate of interest offered 7.1% per annum. There are also a number of small savings schemes that are available to those who are 60 years and above. The rate of interest offered on Senior Citizen’s Savings Scheme is 8.30% per annum. The schemes offered include the 15-year Public Provident Fund and the Post Office Monthly Income Scheme.
The rate of interest offered on the PPF scheme is 7.6% per annum, while the rate earned on the Post Office Monthly Income Scheme is 7.3% per annum.
The lock-in period for the PF account is 15 years and in no case can premature withdrawals be made.
20 April 2018
Post Office time deposits get higher tax exemption
In an effort to provide more tax benefits for senior citizens in India, Finance Minister Arun Jaitley announced various tax benefits in the Union Budget 2018.
The interest earned from Post Office fixed deposits will be exempted upto Rs.50,000. The earlier limit was Rs.10,000. This means that those above 60 years of age can earn Rs.50,000 as interest in a given financial year, without paying tax. Therefore Tax Deducted at Source (TDS) will not be applicable for these FDs if interest earned on the investment adds up to Rs.50,000 from henceforth.
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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.
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.
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%.
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.
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.
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.
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.
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51
RAJARAM KOTHANDARAMAN
, chennai
Reviewed on Apr 03, 2019
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.
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88
DEBAJYOTI BORAH
, guwahati
Reviewed on Dec 12, 2018
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.
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50
SINGIRAPPAGARI RAGHUNATH
, bangalore
Reviewed on Nov 30, 2018
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.
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47
PADMINI GANGADHARAN JITHESH
, chennai
Reviewed on Nov 30, 2018
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.
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48
RAGHURAMAN KRISHNAMURTHY
, hyderabad
Reviewed on Nov 13, 2018
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.
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.
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55
RAGHURAMAN KRISHNAMURTHY
, hyderabad
Reviewed on Feb 05, 2018
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.
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54
SUGATA CHATTERJEE CHATTERJEE
, bhubaneshwar
Reviewed on Nov 08, 2017
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.
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.
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67
MOHAN DEVARALA
, hyderabad
Reviewed on Dec 29, 2016
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.
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58
LOKESH SOUNDARAJAN
, bangalore
Reviewed on Nov 25, 2016
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.
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90
SURENDRAN NATH MISHRA
, mumbai
Reviewed on Apr 26, 2016
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.
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56
SRINIVAS BALLA
, hyderabad
Reviewed on Mar 19, 2016
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.
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109
KATAKAM NARESH KUMAR
, hyderabad
Reviewed on Mar 02, 2016
Fixed Deposit
