Post Office Fixed Deposit Interest Rates 2019

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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 Rates

The table below contains fixed deposit interest rates in post office.
Tenure Post Office FD rates (p.a.)
1 year 7.00%
2 years 7.00%
3 years 7.00%
5 years 7.80%

*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)
60 months 7.80% 7.80%

*The Post Office Time Deposit interest rates are subject to change. The rates of interest mentioned above are valid as 01 August 2019.

Post office fd interest rates 2019
Post Office FD Rates

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
    • Passport
    • 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

  1. How to apply for the Post Office FD scheme?
  2. The following documents need to be submitted to open a Post Office TD:

    • SB3
    • SB103
    • Specimen Signature slip for the Time Deposit
  3. How to transfer my TD account from one Post Office branch to another?
  4. You can either request a transfer of TD either through a written application or the form SB10(b).

  5. What is the minimum amount that I need to invest in a Post Office TD?
  6. You must make an investment of at least Rs.200 in order to operate a Post Office Time Deposit account.

  7. Can I prematurely break my Post Office TD account?
  8. Yes, you can prematurely withdraw from the TD account only after the completion of 6 months of the FD tenure.

  9. What is the highest Post Office Time Deposit rate of interest available?
  10. The highest Post Office TD rate is 6.80% p.a. for a tenure of 5 years.

  11. What is the range of TD maturities available on this deposit scheme?
  12. The tenures available for Post Office TD are 1 year, 2 years,3 years and 5 years.

  13. Can I avail tax exemptions on any of the Post Office TD tenures?
  14. 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.

  15. Is PAN mandatory to open a Post Office Fixed Deposit account?
  16. 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

News About Post Office FD Rates

  • 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.

    1 February 2018

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Post Office FD Rates Reviews

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  • Post Office Fixed Deposit
    "Good for future"
    INDIA POST OFFICE
    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? 7
    , burdwan
    Reviewed on Aug 09, 2019
  • Post Office
    Post Office Fixed Deposit
    "Safe and Secured"
    INDIA POST OFFICE
    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? 8
    , bangalore
    Reviewed on Aug 01, 2019
  • Post Office Fixed Deposit
    "Service needs to be improved"
    INDIA POST OFFICE
    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? 5
    , gurgaon
    Reviewed on Jul 13, 2019
  • Post Office Fixed Deposit
    "Good Experience"
    INDIA POST OFFICE
    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? 15
    , chennai
    Reviewed on Apr 03, 2019
  • Post Office Fixed Deposit
    "Good investment plan"
    INDIA POST OFFICE
    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? 44
    , guwahati
    Reviewed on Dec 12, 2018
  • Post Office Fixed Deposit
    "Better Investment For FD account in post office"
    INDIA 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? 27
    , bangalore
    Reviewed on Nov 30, 2018
  • Post Office Fixed Deposit
    "Good interest rate"
    INDIA POST OFFICE
    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? 25
    , chennai
    Reviewed on Nov 30, 2018
  • Post Office Fixed Deposit
    "Need scope of improvement"
    INDIA POST OFFICE
    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? 25
    , hyderabad
    Reviewed on Nov 13, 2018
  • Post Office Fixed Deposit
    "Good service"
    INDIA POST OFFICE
    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? 27
    , hyderabad
    Reviewed on Sep 26, 2018
  • Post Office Fixed Deposit
    "Needs to improve"
    INDIA POST OFFICE
    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? 41
    , hyderabad
    Reviewed on Feb 05, 2018
  • Post Office Fixed Deposit
    "Good returns"
    INDIA POST OFFICE
    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? 35
    , bhubaneshwar
    Reviewed on Nov 08, 2017
  • Post Office Fixed Deposit
    "Excellent"
    INDIA POST OFFICE
    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? 18
    , noida
    Reviewed on Sep 28, 2017
  • Post Office Fixed Deposit
    "Post office FD"
    INDIA POST OFFICE
    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? 49
    , hyderabad
    Reviewed on Dec 29, 2016
  • Post Office Fixed Deposit
    "No waste of time"
    INDIA POST OFFICE
    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? 47
    , bangalore
    Reviewed on Nov 25, 2016
  • Post Office Fixed Deposit
    "Not a good"
    INDIA POST OFFICE
    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? 78
    , mumbai
    Reviewed on Apr 26, 2016
  • Post Office Fixed Deposit
    "Excellent !!!!"
    INDIA POST OFFICE
    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? 41
    , hyderabad
    Reviewed on Mar 19, 2016
  • Post Office Fixed Deposit
    "Interest rate is good comparing to the banks..."
    INDIA POST OFFICE
    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? 77
    , hyderabad
    Reviewed on Mar 02, 2016
  • Post Office Fixed Deposit
    "Best interest ...."
    INDIA POST OFFICE
    0.5 4.0/5 "Great!"
    India post office is the best for fixed account. They are providing 8.4% interest which was very competitive. Minimum maintenance also good in India post office which was very convenient just 50rs. I would suggest them to provide more facilities to their senior citizens.
    Was this review helpful? 92
    , bangalore
    Reviewed on Jan 15, 2016
  • Post Office Fixed Deposit
    "secured..."
    INDIA POST OFFICE
    0.5 5.0/5 "Blown Away!"
    I was infact suggested by one of the friend to this India Post office for fixed deposit. In comparison to banks the rate is little low in India Post office but it is a secured place to put our money. Also it very easy to send parcels to abroad as being a loyal customer of India post office.
    Was this review helpful? 65
    , bangalore
    Reviewed on Dec 21, 2015
  • Post Office Fixed Deposit
    "Secured one"
    INDIA POST OFFICE
    0.5 4.0/5 "Great!"
    Indian Post Office it is a Government service and I would like to give 4 for Post office. It is very much secured . I am holding this FD for the past one year. The rate of interest offered by PO was 8.5%. I feel that investing at PO is very secured . I did not find any difficulty personally when I deposit there and I had opened this FD.
    Was this review helpful? 70
    , bangalore
    Reviewed on Dec 12, 2015
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