Post Office, PO offers attractive rate of interest on FD Scheme which is @6.90%-7.60% p.a. for tenure ranging from 1 year to 5 years. Post Office provides depositors with a safe and convenient method to save money if they don’t have access to banks.
The Post Office FD Interest Rates are one of the best rates for fixed deposits Investment option in India.
Tenure
- 1 year
- 1 year – 1 year 364 days
- 2 years – 2 years 364 days
- 3 years – 5 years
Regular customers
- 6.90%
- 7.00%
- 7.1%
- 7.50%
Senior citizens
- 6.90%
- 7.00%
- 7.00%
- 7.50%
Interest on a Time Deposit is payable to the depositor quarterly from the date of issue or at maturity along with principal. But on request from the depositor, interest may be paid at monthly, half-yearly or yearly intervals in case of Term Deposits fixed for a term of twelve months and above.
- Indian resident
- A single adult
- Joint Account (up to 3 adults) (Joint A or Joint B)
- A guardian on behalf of minor
- A guardian on behalf of persona of unsound mind
- a minor above 10 years in his own name.
- Any number of account can be opened.
- The tenure of Post Office FD Account from 1 Year to 5 years.
- Depositors can open multiple FD accounts in any of the post offices.
- Minors above of 10 years can also open and manage these accounts as well.
- The minimum deposit amount in Post office FD Account is Rs. 200.
- There is no limit on the maximum deposit.
- Joint account can also opened by individuals, given that the account holders are two adults.
- Depositors can convert these accounts from single to joint and vice versa as per the need.
- Deposits made for a tenure of 5 years are eligible for tax benefits under section 80C of the income Tax Act of India, 1961.
- Post Office Fixed Deposits can be easily transferred from one post office to another.
- Available at all Branches.
- Auto-renewal facility is available on the deposit.
- Nomination available in favour of individual only.
- The account can be open with cash and cheque.
- NRI depositors cannot open a fixed deposit account in the Indian Post Office.
- Loan against SBI FD facility available.
Documents required to Open Post Office FD
- Duly filled SBI FD account opening form.
- Proof of Address – Telephone or Electricity bill, Post Office issued ID or certificate, Passport
- Proof of Identity – Voter ID, Pan card, Aadhaar card, Driving license, Photo ration card, Passport
- Pan Card or Form No. 60 or 61 of the Income Tax Act.
- Age proof
Deposits :-
- Account type for 1 year, 2 years, 3 years, 5 years.
- Account can be opened with minimum of Rs. 1000 and in multiple of Rs. 100 No maximum limit for investment.
- Interest shall be payable annually, No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
- The annual interest may be credited to the saving account of the account holder by submitting application.
- The investment under 5 year TD qualifies for the benefit of section 80C of Income Tax Act, 1961.
Maturity of Post Office FD Account
- Deposit amount shall be repayable after expiry of 1 year, 2 years, 3 years, 5 years from the date of opining.
Extension of Post Office FD/TD Account
- On maturity depositor may further extend TD account for another tenure for which account was initially opened.
- TD account can be extended from date of maturity within the following prescribed period. 1 year TD = within 6 months of maturity, 2 year TD = within 12 months of maturity, 3/5 year TD = within 18 months of maturity.
- At the time of opening of account depositor can submit request for extension of account from the date of maturity.
- Account can be extended after maturity by submitting prescribed Application form.
Premature Closure of Post Office FD/TD
- An Investor can withdraw after six months from the date of deposit. before this period, no withdrawals can be made.
- If TD/FD account closed after 6 month but before 1 year, PO Saving Account Interest rate will be applicable.
- If 2/3/5 year TD account prematurely closed after 1 year, Interest shall be calculated 2% less than of TD Interest rate for completed years, and for part period less than a year, PO Savings Interest rates will be applicable.
- TD/FD account can be closed prematurely by submitting prescribed application from with pass book at concerned Post Office.
Loan Against Post Office Fixed Deposit
Loan against FD of India Post Office provides the loan up to 90-95% of the Fixed Deposit amount. The interest charged on loan against FDs are typically low and are around 2-3% higher than the Fixed Deposit interest rate.
FAQs on Post Office FD Account
Q. What is the highest interest rate on Post office Fixed Deposit ? Currently, the highest interest rate offered by post office fixed deposit is 7.50% for 5 years’ tenure.
Q. What is the minimum deposit required to open a Post Office Fixed Deposit account ? The minimum amount required to open a post office FD account is Rs. 200.
Q. Which is better Bank FD or Post Office FD ? The choice between Bank FD and Post Office FD depends on your financial goals and preferences. So it’s advice to compare interest rate, the tenure option and other factors to make an informed decision.
Q. Can be take a loan against Post Office FD ? No, this facility is not available in post offices to date.
Q. Can Post office Fixed Deposit can be opened online ? Yes, you can Open Post Office Fixed Deposit Account Online.