Post Office FD Interest Rates 2021
The Government of India’s Department of Posts, Ministry of Communications, offers fixed deposit accounts to people with attractive interest rates and tenures ranging from 1 year to 5 years. The rate of interest is payable every year with the minimum deposit being Rs. 1000. There is no maximum limit.
Post Office FD Interest Rates 2021 and Tenure
The Post Office FD Interest Rates change as per the change in the requirements. The interest rates mentioned below in the table are active from 1st April 2020 till now.
|Deposit Tenure||Post Office FD Rates per annum|
Features of Post Office FD Interest Rates 2021
There are different features of Post Office FD Interest Rates 2021 that will help us to understand a bit better about the concept of the same. The features are mentioned below: –
- The amount of the fixed deposit can be transferred from one post office to the other post office at any place in India.
- Any number of accounts of fixed deposits can be opened in any post office at any place in India.
- A single account can be easily converted into a joint account.
- Similarly, a joint account can be easily converted into a single account.
- The facility of nomination is available at the time when the account is opened and after that too.
- An account can be opened either by cheque or by cash.
- The minimum amount to be deposited is Rs. 1000.
- No maximum limit has been set to deposit an amount.
- An account of a minor must be converted once he/she attains maturity.
- The tenure of the fixed deposit can also be extended by sending an application.
- The interest rate is payable yearly.
- The interest will be credited into the savings account of the holder.
For an easy understanding of the Post Office FD Interest Rates 2021, the features are summed up in the following table: –
|Tenure of the Fixed Deposit||1, 2, 3 or 5 years|
|Interest Rate on the Fixed Deposit||5.50%- 6.70%|
|Minimum Amount to be deposit||Rs. 1000/-|
|Payment of Interest||Every Year|
|Mode of Payment||By Cash or by Cheque|
|Facility of Nomination||Available throughout|
The process to Open A Fixed Deposit Account in a Post Office
You can either open a Fixed Deposit Account online or offline in a Post Office. The two methods are explained below: –
This facility is available via net banking or mobile banking and with this, a person can easily open a Fixed Deposit Account in a Post Office while sitting at his home. The facility of internet banking in the Post Office has been available since 2018. For opening an account online, a person must have the following documents: –
- A valid savings account
- KYC documents
- PAN Card
- A valid email ID
- Contact Number
- An active debit card
The following steps are to be followed if you want to open a fixed deposit account in a Post Office online:
- Log in to the e-Banking services of the Post Office with the registered user ID and password.
- Click on the option of General Services.
- Then, click on the ‘Service Request and open it.
- Make the Fixed Deposit by using the option of ‘New Request’.
If you want to open a Fixed Deposit account in a Post Office offline, that is, by visiting the Post Office, you have to follow the steps mentioned below: –
- Get all the documents required.
- Visit the nearest branch of the Post Office.
- Contact an official for the opening of a Fixed Deposit account in the Post Office.
- Enquire about the interest rates available on the Fixed Deposit there.
- That person will guide you through the whole process.
- After opening, make sure that you take the receipt of the FD account.
India Post Office FD Scheme
National Savings Time Deposit Account:
- The Post Office Time Deposit Account is offered by the Department of Post, Ministry of Communication (TD). It is a form of investment in which a lump-amount sum of money is invested for a set period of time, ranging from one month to five years, at a predetermined rate of interest. At post offices, you can open a Post Office Time Deposit Account (TD). It assists in the production of capital as well as the reduction of taxes.
- The account can be accessed with cash or a check. A nomination service is also available.
- Accounts may be moved from one post office to another, but minors must apply for account conversion in their own name after they reach the age of 18.
- Interest is charged once a year.
- Premature withdrawals are not permitted until the six-month period has expired; however, if the account is closed within six and twelve months after the date of opening, the interest rate on the Post Office Savings Account will be payable.
- There is an option to open an account online.
- Section 80C applies to the money in the 5 Years Time Deposits account.
- A minimum deposit of Rs. 1000 in multiples of Rs. 100 is required.
- There is no upper bound.
Who Can Apply?
- An adult who is single
- Joint Account (Maximum 3 adults)
- A minor above the age of ten
- A parent acting on behalf of a minor or a person of unsound mind.
Premature Withdrawal of Post Office FD
Premature withdrawal of funds from a post office fixed deposit is referred to as premature withdrawal. The below are some main points about premature removal of post office FDs:
- Premature withdrawals are approved only after 6 months have elapsed since the account was opened.
If the withdrawal is made within 6 to 12 months of the account opening date, a tax in the form of basic interest will be paid for a defined period of time.
Tax Benefits Of Post Office FD
One of the most important benefits of opening a post office FD account is that no TDS (Tax Deducted at Source) is subtracted from the interest gained. This is due to the fact that post office FDs are intended to support low-income individuals and are thus tax-free. In addition, after filing an income tax return (ITR), one will use their post office FD investments to claim a deduction under section 80C of the Income Tax Act, 1961.
FAQs About Post Office FD Interest Rates 2021
✅Can I open an account for a fixed deposit in a Post Office online?
Yes, you can easily open an account for a fixed deposit in a Post Office online on your mobile phone via mobile banking or net banking.
✅What is the meaning of a silent account?
A silent account is an account in which the withdrawals have not been made for more than a time period of 3 years.
✅What is the minimum balance or amount of money for a Fixed Deposit with a Post Office?
The minimum amount required for a Fixed Deposit with a Post Office is Rs. 1000/-
✅How can I transfer my account from one Post Office to another Post Office?
You can transfer your account from one Post Office to another Post Office by submitting an application of transfer either to the Post Office in which you had an account or to the Post Office in which you want to transfer your account.