Post Office Fixed Deposit Interest Rates 2017

For over 150 years, the Department of Posts has been the backbone of India’s communication structure. It has made people’s lives easy by delivering mails, providing Small Savings Schemes and life insurance cover etc. The Indian post office has 1,55,015 post offices making it one of the most widely distributed postal network in the world.

Post Office Savings Schemes

• Post Office schemes are an ideal investment option and there are a wide range of schemes to choose from. These schemes offer competitive interest rates and other benefits such as tax exemption, etc. Let us explore the various options.

Post Office Savings Account

• This is a savings account that pays interest at the rate of 4% p.a. The minimum balance that needs to be maintained in this type of account is Rs.50. The features include cheque, ATM card, and other benefits.

Post Office Time Deposit Account (TD)

• This is a type of fixed deposit account that can be opened with a minimum investment amount of Rs.200. The interest rate offered ranges from 6.8% to 7.6%. These time deposits can be held for a tenure ranging anywhere between 1 to 5 years.

Post Office Monthly Income Account (MIS)

• An MIS scheme is a type of investment that pays an assured rate of interest on a monthly basis. The rate of interest offered by India Post for MIS schemes is 7.5% p.a.

Senior Citizen Savings Scheme (SCSS)

• SCSS are savings schemes for senior citizens and come with a lock-in period of 5 years. The interest rate offered is 8.3% p.a. The maximum amount that can be invested in this type of deposit is Rs.15 lakh.

Public Provident Fund Account (PPF)

• India Post PPF account is a type of long-term investment scheme where one can invest a fixed sum for a set period of time. India Post offers an interest rate of 7.8% p.a. and this scheme comes with a lock-in period of 15 years. One can avail tax exemption under Section 80C of the Income Tax Act for PPF accounts.

National Savings Certificate (NSC)

• NSC is a tax saving bond issued by India Post. These certificates can be purchased for a minimum of Rs.100. The interest rate offered on this scheme is 7.8%.

Kisan Vikas Patra (KVP)

• KVP is an investment scheme offered by India Post. The minimum deposit that can be made under this scheme is Rs.1000. The amount invested doubles up in a period of 115 months.

Sukanya Samriddhi Accounts (SSA)

• The SSA is special savings scheme for girl children and can be purchased by parents or guardians of the child. The interest rate offered is 8.3% p.a. The minimum annual deposit for SSA is Rs.1, 000, while the maximum is Rs.1, 50,000.

  *Please note that interest rates are subject to change as per the discretion of India Post

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  Features and Benefits of FD in Post Office

  • The time deposit account can be opened for 5 years.
  • Any number of accounts can be opened in any post office.
  • A minor of 10 year or above can open and manage the account.
  • Joint accounts can be opened by two adults.
  • An individual can convert the time deposit account from single to joint and vice versa.
  • Fixed deposit schemes are available for a period of 5 years.
  • The minimum amount that can be deposited is Rs.200, there is no limit on the maximum amount.
  • The depositor can open a time deposit with the post office for a minimum of 1 year.
  • The investments made under 5 years are eligible for tax benefits and deductions under Section 80C of the Income Tax Act of India, 1961.
  • The accounts can be ported to other post offices quite easily.
  • Depositor can open any number of time deposit accounts.
  • On maturity, the account is automatically renewed for the period it was initially opened.
  • NRIs cannot invest in the time deposit schemes offered by the post office.
  

  Post Office FD Rates

  Post Office Interest Rates

  For a duration of 1 year: The Indian Post Office offers 6.8% interest rate for the time deposits for a tenure of 1 year.

  For a duration of 2 years: 6.9% interest rate is offered to the depositor for time deposit of two years.

  For a duration of 3 years: 7.1% interest rate is offered for a tenure of 3 years.

  For a duration of 5 years: Post office offers 7.6% interest rate to their depositors.

  The Indian Post Office doesn’t offer any special interest rates to the senior citizen. There is no limit to the amount that can be deposited neither is a limit on how many time deposit accounts one individual opens.