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    India Post Office  and 2 other FDs

    Institution Name
    Deposit Amount Range
    Tenure Range
    Interest Rate
    Up to ₹1Cr
    1 Year to 5 Years
    6.9% - 7.7% Quarterly compounding
    Response Time Within 30 minutes
    Good to Know
    Up to ₹25L
    1 Year to 5 Years
    7.49% - 8.19% Monthly compounding
    Response Time Within 30 minutes
    Good to Know
    Up to ₹25L
    1 Year to 5 Years
    7.75% - 8.5% Monthly compounding
    Response Time Within 30 minutes
    Good to Know

    India Post Office is Rated as "Excellent!" by 13 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service



    Department of Post, considered the backbone of India’s communications fabric, with 154866 post offices in the country, is the the largest in the world. With around 1,39,040 post offices in rural areas alone, the department is further widening its reach and functioning by diversifying into several domains such as insurance, money transfer and retail services among others.

    The Post Office Savings Bank (POSB) is the oldest and largest banking institution in the country. It operates over 238 million savings accounts. The Post Office Savings Bank schemes are a function performed by the Department of Posts on behalf of the Ministry of Finance.

    The eight savings schemes offered by the department are savings accounts, recurring deposits, time deposit, monthly income scheme, public provident fund, Kisan Vikas Patras (KVP), National Savings Certificate (NSC) and Senior Citizens Savings Scheme (SCSS).

    India Post Office Time (Fixed) Deposit Scheme

    • There are currently over 93,55,825 time deposit accounts across the country. Owing to the benefit of assured returns on the deposit and the low risk factor, it is one of the sought-after schemes in the country.
    • The scheme offers several benefits including portability of account from one post office to another and option of extending the deposit on maturity. Also, maturity proceeds not drawn are eligible for savings account interest rate for two years.
    • The tenures for fixed deposit offered range from one, two and three years to five years with the facility to draw yearly interest at compounded rates.
    • Automatic credit facility of interest to the savings bank account is available.
    • Group accounts, institutional accounts, Trust, regimental fund or welfare fund are not permissible.
    • Although interest income is taxable, TDS certificate is not issued under the scheme.

    Post Office Monthly Income Scheme

    In terms of investments that offer assured returns, fixed deposits and recurring deposits from banks as well as the postal department might be well known to people from across India. Another lucrative scheme that offers similar rates and a lot of flexibility is the Monthly Income Scheme (MIS) from India Post and is available for opening across all post offices.

    With a rate of interest as high as 8.40%, this interest is calculated on an annual basis and payable every month, allowing the account holder to avail a monthly income on his/her investment. The interest payable can be withdrawn into savings account at the same post office or if the account is at a CBS post office, the monthly income can be auto credited into any savings account at any CBS post office. The interest, if not withdrawn, will not accrue any additional interest though. The MIS account itself is transferrable to any post office across India. The account can have a maximum of Rs. 4.5 lakh as individual investment and Rs. 9 lakh as joint account investment. The maturity period of the account is five years.

    Who can open a fixed deposit account with India Post Office?

    Any individual (a single adult or two adults) can open a term deposit account.

    How to open an account?

    An individual can open an account at any head post office or general post office after filling out the deposit opening form provided by the post office. The following documents have to be furnished to facilitate the opening of the account.

    • Address and identity proof (passport, PAN card or declaration in form no 60 or 61, driving licence, voter’s ID or ration card).
    • Original identity proof for verification.
    • The individual has to choose a nominee and also get a witness signature to complete the process.

    Is the fixed deposit scheme offered by India Post available online?

    No. The scheme is not available online.

    What is the minimum amount required to open a FD account with India Post Office?

    The minimum amount needed to open a fixed deposit account is Rs. 200.

    What is the maximum amount that can be deposited in a FD account with India Post Office?

    There is no limit to the maximum amount which can be deposited in the account.

    What is the procedure to open a fixed deposit account at Indian Post Office account?

    • Account may be opened by individual by cash or cheque. If the account is opened by cheque, the date of realization of cheque will be considered as the date of opening of account.
    • Nomination facility is available at the time of opening of the account.
    • Account can be transferred from one post office to another.
    • Account can be opened in the name of any minor of 10 years and above. The minor after attaining majority can apply for conversion of the account in his name.
    • A joint account can be opened by two adults. A single account can be converted into joint account and vice versa.

    Does India Post offer tax saver fixed deposits?

    There are no specific tax saver deposit schemes. There is no tax benefit on deposits under five years. The five-year deposit is, therefore, deductible under section 80C.

    What are the main features of India post office fixed deposit scheme?

    • Offers 1, 2, 3 and 5 year time deposits. A single adult or two adults can open an account.
    • Interest is payable annually but calculated quarterly. Interest income is taxable.
    • Minimum investment is Rs. 200 and its multiples. Offers facility of extending on maturity of an account.
    • Post office time deposits are meant for investors who can deposit a lump sum for a fixed period.
    • The scheme is not only low risk but also offers high capital protection in that it is backed by the government. The investment, therefore, grows at a pre-determined rate with assured returns.
    • If inflation is above the interest rate offered, there are no high returns. The scheme is, therefore, not insulated from inflation.
    • The interest rate for a five-year deposit will be notified before April 1 every year. It is usually aligned with G-sec rates of similar maturity with a spread of 0.25%.
    • An individual can borrow against the deposit or withdraw the deposit prematurely.
    • Since the scheme is offered by the government of India, it does not require any commercial rating.
    • If a deposit is split across varying tenures, only a few deposits will lose interest in case of any premature withdrawal.

    Are loans provided against FDs at India Post Office?

    Yes. FD account can be pledged as security against a loan.

    Does India Post Office offer senior citizens any special rates on their fixed deposits?

    No. Senior citizens do not get any special rates for FD schemes.

    Does India Post impose any penalties for premature withdrawal of FD deposits?

    Premature withdrawal or closure is permitted after completion of six months of opening the deposit. The account can be closed after 6 months and before one year of opening the account, in which case, the amount invested is returned sans interest to the depositor. If a time deposit of two or three years is withdrawn prematurely, interest will be paid only for the completed years. (In case of a bank FD, if a bank imposes penalties, the depositor will be paid interest at a lower rate than what was opted for).

    Can NRIs open a FD account in India Post?

    No. Only residents of India preferably with a post office savings bank account can open a fixed deposit account under the scheme.

    News About India Post Office

    • Post Office Schemes Saw Over 50 lakh Transactions in March

      With reduced rate of interest on small savings schemes coming into effect on April 1, and the first half of March saw around 50 lakh transactions as against the average of 20-30 lakh transactions taking place in a year.

      Around 13 lakh new accounts were opened in the second half of March as against 4 to 5 lakh seen in an average month, an official said. This rush was a result of citizens trying to secure themselves against the revised interest rates, which have been brought down by up to 130 basis points.

      Post office savings schemes give interest rates prevalent at the time of transaction. The interest rate on certain Post Office Fixed Deposits are as follows: 2-year term deposit now earns 7.2 percent instead of 8.4 percent, 3-year fixed deposit will get 7.4 percent instead of 8.4 percent, and 5-year deposit will get 7.9 percent instead of 8.5 percent.

      18th April 2016

    • Tax benefits of Post Office Time Deposits

      There are number of small savings schemes available in the market such as PPF, NSC and Post Office Term Deposits by investing in which investors can avail tax benefits. Among these various schemes, the Post office Term Deposits not only offer higher and attractive rates of interest, but investors can also enjoy tax benefits by investing in them. These investments are counted as a deduction under section 80C of the Indian Income Tax Act, 1961. However, the interest amount earned from these deposits are taxable. Usually, an investor can invest for a tenure of 1 to 5 years under these deposit schemes. These deposits can be automatically as well as withdrawn by paying a nominal penalty fees. There is no-lock in period involved in Post Office Term Deposits.

      20th November 2015

    • Fixed Deposit Savings Scheme for Girls

      The Indian Postal System has introduced a fixed deposit scheme meant especially for girls to promote the welfare of the girl child. Termed ‘Suzanna Samriddhi’, the fixed deposit scheme can be opened by a legal guardian for a girl child.

      The account can be opened for girl children of up to 10 years of age and the tenure of the deposit will be 21 years from the date of the first deposit. Till a period of 14 years from the date of the first deposit, additional deposits can be made. The maximum amount of deposit per year is limited to Rs. 1,50,000 and the minimum amount is Rs. 1000. Further deposits can be made in any amount and any number of times in a financial year. Additionally, reaching a deposit of Rs. 1,50,000 allows the deposit to avail tax benefits.

      This particular scheme is aimed at providing aid to the girl child in higher education, marriage and other needs as the case may be.

      14th February, 2015

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  • Post Office FD Reviews

    • Post Office Fixed Deposit
      "Post office FD"
      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? 40
      , hyderabad
      Reviewed on Dec 29, 2016
    • Post Office Fixed Deposit
      "No waste of time"
      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? 31
      , bangalore
      Reviewed on Nov 25, 2016
    • Post Office Fixed Deposit
      "Not a good"
      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? 59
      , mumbai
      Reviewed on Apr 26, 2016
    • Post Office Fixed Deposit
      "Excellent !!!!"
      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? 33
      , hyderabad
      Reviewed on Mar 19, 2016
    • Post Office Fixed Deposit
      "Interest rate is good comparing to the banks..."
      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? 65
      , hyderabad
      Reviewed on Mar 02, 2016
    • Post Office Fixed Deposit
      "Best interest ...."
      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? 72
      , bangalore
      Reviewed on Jan 15, 2016
    • Post Office Fixed Deposit
      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? 55
      , bangalore
      Reviewed on Dec 21, 2015
    • Post Office Fixed Deposit
      "Secured one"
      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? 53
      , bangalore
      Reviewed on Dec 12, 2015
    • Post Office Fixed Deposit
      "Good one"
      0.5 5.0/5 "Blown Away!"
      Post office fixed deposit that a good one. I am holding this FD since 2011 for the past 5 years. Monthly I am depositing rs 550 which was a period of 20 years . The major benefit is I use this for income purpose and everything is fine.
      Was this review helpful? 41
      , coimbatore
      Reviewed on Dec 08, 2015
    • Post Office Fixed Deposit
      "Not great.."
      0.5 4.0/5 "Great!"
      Friend is working in India Post Office and through him I opened the fixed deposit. Nationalized banks and offices are not that great in customer service and they are not that approachable. I have easily processed because of my friend but it will not happen to normal customers. Employees are not bothered to help the public.
      Was this review helpful? 46
      , tiruchirapalli
      Reviewed on Nov 24, 2015
    • Post Office Fixed Deposit
      "Gives best rate "
      0.5 4.5/5 "Excellent!"
      India post is giving 9% interest rate for the fixed deposit for the minimum lock in period of 5 year. Minimum amount starts with Rs.500. For the pass book they charge Rs.200. The only issue we have to wait for long time to get deposit the amount.
      Was this review helpful? 59
      , secunderabad
      Reviewed on Nov 07, 2015
    • Post Office Fixed Deposit
      "Can increase the rate.."
      0.5 4.0/5 "Great!"
      To save the income tax I mainly opened the fixed deposit from India Post Office. I took it for 5 years of tenure and you get 9% of the interest rate for one year. The rate will accumulates like every year. Offers are good but they are slow as they are government sector.
      Was this review helpful? 45
      , bangalore
      Reviewed on Nov 06, 2015
    • Post Office Fixed Deposit
      0.5 5.0/5 "Blown Away!"
      Specifically for tax deduction I have chosen India Post office fixed deposit and benefits are fine. Post seven years the deposited amount would be doubled. While opening I was told that I can withdraw the amount in midst of the tenure and that is not complete amount as can take out 70%. In comparison to national savings scheme rate of interest is fine in India Post Office.
      Was this review helpful? 108
      , bangalore
      Reviewed on Sep 03, 2015
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