The Government of India’s Department of Posts, Ministry of Communications, offers fixed deposit accounts that offer attractive interest rates with tenures that range from 1 year up to 5 years. The interest is payable annually with the minimum deposit being Rs.1,000 and no maximum limit.
Post Office Fixed Deposit Rates
| 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 as per the requirements. These interest rates are effective from 1 April 2020.
Rates for Tax-Saving Post Office 5-year Fixed Deposit
If you open a fixed deposit with the post office for a tenure of 5 years, you will be eligible to claim tax benefits under Section 80C of the Income Tax Act, 1961.
| Tenure | Regular Post Office FD rates (p.a) |
|---|---|
| 60 months | 6.70% |
*The Post Office Fixed Deposit interest rates are subject to change as per the requirements. These interest rates are effective from 1 April 2020.
Post Office Time Deposit Account
The Post Office Time Deposit (TD) Account, also known as the Post Office Fixed Deposit (FD) account, can be opened with a minimum of Rs.1,000 in multiples of Rs.100, with no maximum limit.
Highlights of Post Office FD Interest 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.
- Interest rate for a tenure of 2 years: 5.50% p.a.
- Interest rate for a period of 3 years: 5.50% p.a.
Features of Post Office Fixed deposit
- Account can be transferred from one post office to another anywhere in the country
- Any number of accounts can be opened in any post office anywhere in the country
- A single account can be converted into a joint account and vice versa
- Nomination facility is available at the time of opening the account and afterwards too
- Account can be opened by cheque or cash
- Minimum amount is Rs.1,000.
- There is no maximum limit to the deposit
- A minor’s account has to be converted after attaining majority
- The tenure can be extended by making an application
- Interest is payable annually
- Interest is credited into the holder’s savings account
Who can open a Fixed Deposit Account?
A time deposit account with India Post can be opened by:
- A single adult
- Maximum of three adults (in the case of a joint account)
- A Minor who is above 10 years of age
- A guardian on behalf of an individual who is a minor or a person of unsound mind
Know more about Post Office RD Interest Rates
Premature Withdrawal of Post Office FD
Premature withdrawal of a Post Office FD or Term Deposit can be made between 6 months to 1 year of the date of opening the account. However, if withdrawal is not allowed before 6 months from the date of opening the account.
TDS Deduction on Post Office FD
You can avail a tax deduction under Section 80C of the Income Tax Act, 1961, for deposits with a tenure of 5 years. This rule is applicable from 1 April 2007.
Post Office FD calculator
- To know exactly how much you will earn with interest on a Post Office Fixed Deposit account even before you open it, use an online FD calculator which is free and easy to use
- All you have to do is enter the amount you wish to invest, the current rate of interest for the tenure you wish to invest in, and the type of interest compounding frequency
- The exact amount you will earn with interest will be instantly displayed on the page
FAQs on Post Office Fixed Deposit Interest Rates
- What is the minimum balance required for a post office FD?
The minimum balance required for a post office FD account is Rs.1,000
- What are the documents required to open an FD account with the post office?
To open an FD account with the post office, all you need are your KYC documents, deposit slip (SB 103), and a duly-filled in Account Opening Form (AOF).
- How do I transfer my account from one post office branch to another?
You can transfer your account from one post office branch to another by submitting a transfer application either in the post office you are transferring from or transferring to. You would have to apply with your KYC documents, passbook, and application form number 1224SB 10(B)/NC-32.
- Can I open a post office FD account online?
Yes, you can open a post office fixed deposit account online through the mobile banking or intra-operable net banking facility.
- What is a silent account?
A silent account is one in which the withdrawals have not been made for more than 3 years.
