Post Office Fixed Deposit Rate

Post Office offers attractive fixed deposit rates. Fixed deposits can be opened online or by visiting the nearest branch. Post Office Fixed deposit rates vary with the amount invested and the tenure. The rates are also different for non-withdrawable deposits and recurring fixed deposits.

Post Office FD Interest Rates

Indian postal services, which operate our country's post offices, give depositors attractive interest rates. Post office FD interest rates range from 6.90% to 7.50%. Tenures range from 1 to 5 years. The interest is payable yearly, and the minimum deposit is Rs. 1000. There is no restriction on the highest deposit amount.

Post Office FD Interest Rates - A Comparison

Bank	FD Rates	Post Office FD Rates
HDFC Bank	Regular FD rates - 3.00% to 7.25% FD rates for senior citizens - 3.50% to 7.75%	6.90% to 7.50%
Canara Bank	Regular FD rates – 4.00% to 7.25% FD rates for senior citizens - 4.00% to 7.75%	6.90% to 7.50%
IDBI Bank	Regular FD rates - 3.00% to 6.75% FD rates for senior citizens - 3.50% to 7.25%	6.90% to 7.50%
Bank of India	Regular FD rates - 3.00% to 7.00% FD rates for senior citizens - 3.50% to 7.50%	6.90% to 7.50%
Axis Bank	Regular FD rates – 3.50% to 7.10% Senior Citizen FD rates vary between 3.50% to 7.85%	6.90% to 7.50%
Punjab National Bank	Regular FD rates – 3.50% to 7.25% Senior Citizen FD rates - 4.00% to 7.75%	6.90% to 7.50%
State Bank of India	Regular FD rates - 3.00% to 7.10% FD rates for senior citizens – 3.50% to 7.60%	6.90% to 7.50%

Key Characteristics of Post Office Fixed Deposits

Your account can be transferred from one post office to another anywhere in the country.
Accounts can be opened limitlessly in any post office anywhere in the country.
You can convert a single account into a joint account and vice versa.
A nomination facility is available at the time of account opening and post that too
The post office account can be opened either by cheque or cash
The minimum deposit amount is Rs. 1,000.
There is no limit on the maximum deposit
A minor's account has to be converted after reaching the threshold.
You can extend the tenure by putting in an application
This interest is payable annually
It can be credited to the holder’s savings account

What Are the Types of Post Office FD Schemes?

1) National Savings Time deposit account

Features

Tenure: Post office FDs can be opened for durations of 1,2,3, and 5 years
Minimum Deposit Amount: The least deposit amount for this account is Rs. 1000 with further investments to be made in multiples of 100.
Interest: The interest on a post office FD account is payable on an annual basis. The interest is compounded on a quarterly basis for the purpose of interest computation. If the account holder does not withdraw their interest amount on the due date, they will not be eligible for any further interest on the interest amount.
Taxation: Under Section 80C of the Income Tax Act, any investment under a 5 year post office FD account will qualify for taxation benefits.
Extension: Upon maturity of the PO FD account, the depositor can extend it to another tenure within a prescribed duration from the maturity date. They are as follows: For 1-year PO FD account - Within 6 months of maturity. For 2 year PO FD account - Within 12 months of maturity For 3/5 year PO FD account – Within 18 months of maturity. If the account is extended, the interest rate will not change.
Premature Closure: Any amount in a PO FD deposit can be withdrawn only after 6 months. The interest rate for the deposit will be the same as that on a PO savings account. Exception: If a 2, 3, or 5-year PO FD account is closed after 1 year, the interest rate will be 2% lower than the PO FD rate for the finished years. However, for the partial period less than a year, the PO savings account rate will hold good
Who Can open a national savings time deposit account? Any adult A guardian can do it for a minor or a person of unsound mind A minor above 10 years A joint account holder along with 3 other adults

2. National Savings Monthly Income Account

This account provides the facility of monthly interest income for its depositors to manage their regular expenses.

Features:

Tenure: This account can be opened for a period of 5 years
Minimum Deposit Amount: The least deposit amount for this account is Rs. 1,000. Further deposits will be made in multiples of 1,000
Maximum Deposit Amount: Single account: 4.5 lakhs Joint account: 9 lakhs For an account opened by the guardian on behalf of a minor, the limit will be different
Interest: The interest is paid on the fixed deposit every month end from the date of opening the deposit till its maturity. If the interest is not claimed by the depositor, then it will not earn any further interest on the interest amount. The interest income is also taxable
Maturity: Maturity period: 5 years If the account holder dies prior to the maturity of the deposit, the amount will be given to the nominee or the legal heir.
Who Can open a national savings monthly income account? Any adult An appointed representative for a minor or an individual with impaired mental capacity A minor above 10 years A joint account holder along with 3 other adults
Premature Closure: Any amount deposited in this scheme can be withdrawn only after 1 year from the deposit date. The following conditions are applicable in the case of account closure. If the account is closed after 3 years but before 5 years from the account opening date, 1% of the deposit amount will be deducted. If the account is closed after 1 year but before 3 years from the account opening date, 2% of the deposit amount will be deducted. If the account is closed after 3 years but before 5 years from the account opening date, 1% of the deposit amount will be deducted.

Eligibility Criteria To Open A Post Office Fixed Deposit Account

Any single adult can open a post office fixed deposit account
In the case of a joint account, it can be opened by 3 adults to the maximum
A Minor who is over 10 years of age
A guardian can open a PO FD for a minor or a person of unsound mind.

Documents Required To Open Post Office FD Scheme

The various documents required are:

Post office FD application form
Address proof - Electricity bill, passport, telephone bill, etc.
Identity Verification: Aadhaar Card, PAN Card, Driver's License, Voter ID, and More.

What Is Account Extension of Post Office FD Scheme?

Once your FD account expires, you can extend the tenure by a few months. If you are not extending the tenure, you should withdraw the amount at maturity. The period of maturity can also be extended twice. To extend the PO FD account, Form-3 and the application for account extension must be submitted by the account holder.

Payment on Account of Account Holder’s Death

If the account holder expires, the deposit amount is given to the nominees or the legal heirs.
If there are many legal heirs, the sum is distributed in the proportions as laid down by the account holder.
If no proportions are mentioned, then there will be an equal division of the sum among all legal heirs

FAQs about Post Office FD Interest Rates:

1. Can I double my money within 5 years in the post office?

There are several investment options given by the post office that can be used to double your money in 5 years.

2. How do I transfer my account from one branch of the post office branch to another?

You can transfer your account from one post office branch to another by submitting a transfer application in either the post office you are transferring from or to. You should submit your KYC documents, passbook, and application form number.