Post Office FD Interest Rates
Among the many FD providers in the industry, India Post Office is one of the most dependable. Better returns, a flexible tenure, a lower minimum investment cap, and a loan against FD facility, to name a few advantages, are all applicable to investors with an India Post Office FD. When it comes to FD interest rates, India Post Office FDs bid the highest rate of 6.70 percent. For senior citizens, the current India Post Office FD interest rate ranges from 5.50 percent to 6.70 percent.
The Indian Postal Department, also known as India Post, offers its customers the option of placing their excess funds in a Fixed Deposit and earning interest on them. The interest rates on Post Office fixed deposits are among the highest available in India. Interest in post office FDs is charged monthly, while interest in this scheme is compounded quarterly. In rural areas, residents are more likely to prefer post office fixed deposits over bank deposit schemes.
Post Office FD Interest Rates
|Tenure||FD Interest Rates||
Senior Citizen FD Interest Rates
|7 days to 1 year||5.50%||5.50%|
|1 year 1 day to 2 years||5.50%||5.50%|
|2 years 1 day to 3 years||5.50%||5.50%|
|3 years 1 day to 5 years||6.70%||6.70%|
Post Office Fixed Deposit Features
Depositors looking to invest in a fixed income instrument and gain better returns than savings accounts should consider India Post Office FDs. The below are some of the main features of an India Post Office Fixed Deposit:
- Amount of Deposit: India Post Office FDs can be opened for as little as $1,000 to as much as No Limit.
- The tenure of FDs varies from 7 days to 5 years.
- Interest Rates: 5.50 percent to 6.70 percent per annum
- FD Rates for Senior Citizens: 5.50 to 6.70 percent per annum
- Best Interest Rate: According to today’s rate, India Post Office offers the highest interest rate on FDs at 6.70 percent for a 5-year term.
- India’s safety India’s Post Office Deposits Deposits in Post Offices are provided by the RBI’s Deposit Insurance Program, which ensures up to 5 lakh of a depositor’s gross deposits.
- India proposes a credit against a fixed deposit. To help its depositors fulfill their liquidity needs without splitting their FD, the Post Office offers a loan against it.
- Auto-renewal service is available.
- A nomination service is available.
- National Savings Time Deposit Account is a common FD scheme.
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.
Documents required to open Fixed Deposit Account in India Post Office
There are very few documents required for this process and these documents are KYC documents and Passport size photos.
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.
Loan against India Post Office FD
India Post Office issues loans up to 0% on its own deposit. It’s worth mentioning that the India Post Office would not lend you money if you have an FD with another branch. The India Post Office proposes a loan against a fixed deposit (FD) at a cost of 6.5 percent to 7.7%.
The maximum loan tenure is limited to the FD’s maximum term.
Post Office FD Calculation
An online post office FD calculator can be used to calculate the interest that can be earned on a post office FD. By entering simple information about your FD, such as the amount invested, the interest rate, the tenure, and the method of interest compounding, you will determine the exact maturity value of your FD.
How to Open Post Office FD?
There are two options available to open a Post Office FD which are online and offline. We will discuss both the options in the following points:
The account opening facility is accessible on the internet through Intra Operable Netbanking/Mobile Banking in the online mode. After 2018, Indian Post has provided consumers with access to post office net banking facilities, allowing them to conveniently move funds between different post offices.
To open up a Post Office FD, you must have these requirements:
- Operating savings account that is legitimate.
- KYC documents checked with a PAN card
- DOP (Department of Post) ATM or debit card in good standing
- A valid phone number and email address are needed.
Steps to Open Post Office FD Online
To create a Post Office FD account online, follow the steps given below:
Step 1: Check in to post office e-banking using your registered email id and password on the Indian Post’s official website. If you’re a first-time user, choose the ‘Latest User Activation’ option.
Step 2: Choose General Services from the drop-down menu.
Step 3: Locate and open the Service Request.
Step 4: Using the ‘New Request’ option, create a time deposit (TD) opening request.
If opening an offline fixed deposit account, keep the following points in mind:
- Bring all of the necessary documentation to any India Post branch near you.
- Inquire with a post office official about opening an FD.
- Read more about the latest FD prices at the post office.
- Make a copy of the receipt after opening a post office FD account for future reference.
Nomination Facility on India Post Office FD
The India Post Office has a nominating service for Fixed Deposits, allowing the depositor’s estate to demand the funds in the event of the depositor’s death. A candidate may be appointed by a person, a single account holder, or a joint account holder. No more than one person may be named as a candidate. When you open a fixed deposit with the India Post Office, you can fill out nominee details. At the point of argument, the nominee must have identity evidence.
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.
News About Post Office FD Rates
India Post offers interest rate to the tune of 7 – 7.8% on term deposits
Customers can choose from four different lock-in periods for fixed deposits at India Post, which has a network of over 1.5 lakh post offices. Fixed deposit interest rates range from 7 to 7.80 percent per year. A fixed deposit can be opened with as little as Rs.200.When it comes to savings, the one-year, two-year, and three-year term deposits have no upper limit, while the five-year fixed deposit allows a maximum of Rs.1.5 lakh per year.
Individuals who invest in a five-year term deposit are eligible for an income tax gain under Section 80C of the Internal Revenue Code.
for more details visit the Dialabank official page.
FAQs on Post Office FD Interest Rates
✅ What is the highest interest rate Post office fixed deposit offers?
The highest interest rate currently paid by a post office fixed deposit is 7.70 percent over a five-year term.
✅ What is the minimum deposit required to open a post office fixed deposit account?
A minimum deposit of Rs. 1000 is expected to open a Post office FD account.
✅ Is it possible to change the tenure of my existing fixed deposit account with the Indian Post Office?
No, if a fixed deposit account is opened, it is not possible to adjust the tenure chosen. You can, however, close your current fixed deposit account and open a new one for the duration you want.
✅What are the implications of opening an FD bank account without having a PAN?
The following are the consequences for customers who open a fixed deposit account with India Post Office without having a PAN card.
- TDS will be deducted at a rate of 20%, as opposed to 10% under section 206AA.
- The Income Tax Department would not offer you a refund for TDS.
- There will be no TDS certificate released.
- Type 15G/H and other exemption certificates will be worthless, and TDS fines will be levied.
✅In how many years FD will double in India Post Office?
The interest rate on an FD is determined by the term you choose. Divide 72 by 6.70 percent to find the length of time it would take for your FD to double in value. The number of years in which your India Post Office FD will be doubled is 72/6.70 = 11.
Table of Contents
- 1 Post Office FD Interest Rates
- 2 Post Office FD Interest Rates
- 3 Post Office Fixed Deposit Features
- 4 India Post Office FD Scheme
- 5 Documents required to open Fixed Deposit Account in India Post Office
- 6 Premature Withdrawal of Post Office FD
- 7 Loan against India Post Office FD
- 8 Post Office FD Calculation
- 9 How to Open Post Office FD?
- 10 Nomination Facility on India Post Office FD
- 11 Tax Benefits Of Post Office FD
- 12 News About Post Office FD Rates
- 13 FAQs on Post Office FD Interest Rates
- 13.1 ✅ What is the highest interest rate Post office fixed deposit offers?
- 13.2 ✅ What is the minimum deposit required to open a post office fixed deposit account?
- 13.3 ✅ Is it possible to change the tenure of my existing fixed deposit account with the Indian Post Office?
- 13.4 ✅What are the implications of opening an FD bank account without having a PAN?
- 13.5 ✅In how many years FD will double in India Post Office?