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Post Office Fixed Deposit (FD) Interest Rates 2024 – Latest Fixed Deposit Rates & Schemes

With terms ranging from one year to five years, the Department of Postal Service, Ministry of Communications, Government of India, provides fixed deposit accounts with competitive interest rates. 

Interest rates on federal debt at the post office vary between 6.90% to 7.50%. There is no maximum deposit amount and an annual minimum of Rs. 1,000 required being eligible for interest.

The following lists the different attributes of Post Office FD schemes

Interest Rates: 6.90% to 7.50%
Tenure: 1, 2, 3, or 5 years
Minimum Deposit Amount: Rs.1,000
Premature Withdrawal: Permissible after six months
Nomination Facility: Offered
TDS Deduction: Tax deduction under Section 80C of the Income Tax Act, 1961 available

Interest Rates on Post Office Fixed Deposits

Deposit Tenure Post Office FD Rates (p.a.)
1 year 6.90%
2 years 7.00%
3 years 7.00%
5 years 7.50%

Read More: Fixed Deposit (FD) Interest Rates

Rates for a Five-Year Tax-Free Post Office Fixed Deposit

You can avail tax benefits under Section 80C of the Income Tax Act of 1961 if you make a fixed deposit with the post office and keep it open for five years.

Tenure Regular Post Office FD Rates (p.a.)
60 months 7.50%

Time Deposit Account for Post Office

There is no maximum restriction and you can create a Post Office Time Deposit (TD) Account, also referred to as a Post Office Fixed Deposit (FD) account, with a minimum of Rs. 1,000 and multiples of Rs. 100.

Post Office Fixed Deposit Features

Here are the key features of post office FD:

  • Account transfers are possible across post offices across the nation.
  • Any post office in the nation allows the opening of an unlimited number of accounts.
  • It is possible to change an individual account into an account jointly owned and vice versa.
  • The option to nominate someone is accessible both when registering an account and later on.
  • Cash or a check can be used to open an account.
  • There is a minimum of Rs. 1,000.
  • The deposit has no maximum amount.
  • The account of a minor must be converted upon reaching majority.
  • A request can be made to prolong the tenure.
  • Interest is due on a yearly basis.

The holder receives interest credited to their savings account.

Post Office FD Scheme Types 

The following lists the several kinds of Post Office FD schemes. 

One of the most popular and easily accessible types of savings accounts in India is the Post Office Savings Account. 500 rupees is the lowest and highest amount that may be kept in storage. Only the individual may open a single account. An unlimited sum can be placed into a savings account at the post office. 

National Savings Monthly Income Account: By offering monthly interest income, the National Savings monthly Income Account enables depositors to handle their regular costs.

Partial Analysis of Banks and Post Office FD Rates  

A comparison of other banks’ and the Post Office’s FD rates 

Bank Name Regular FD Rates Senior Citizen FD Rates Post Office FD Rates
State Bank of India 3.00% – 7.10% 3.50% – 7.60% 6.90% – 7.50%
HDFC Bank 3.00% – 7.25% 3.50% – 7.75% 6.90% – 7.50%
Axis Bank 3.50% – 7.20% 3.50% – 7.95% 6.90% – 7.50%
Punjab National Bank 3.50% – 7.25% 4.00% – 7.75% 6.90% – 7.50%
Bank of India 3.00% – 7.00% 3.50% – 7.50% 6.90% – 7.50%
Canara Bank 4.00% – 7.25% 4.00% – 7.75% 6.90% – 7.50%
IDBI Bank 3.00% – 6.75% 3.50% – 7.25% 6.90% – 7.50%

Who can Open a Post Office FD Account?

To create a time deposit account with India Post, do the following:

  • An adult alone
  • Three adults at most (in the event of a joint account)
  • A child who is older than ten years old A guardian acting on the behalf of a minor or mentally ill person

Documents Needed for the Post Office FD Program

The following list includes the different documentation needed for the Post Office FD scheme: 

  • Application for Post Office FD.
  • Documentation proving residency such as a passport, phone or power bill, etc. 
  • Identity proof includes voter ID cards, PAN cards, driver’s licenses, and Aadhaar cards.

Read More: Documents Required for Federal Bank Net Banking Registration

Account Extension 

The account holder must file Form-3, Application for Account Extension, in order to extend their account under the Post Office FD Scheme. Once your FD account has expired, you can extend its term. But the opportunity for extension is limited to a few months. The person who holds the account must take out the funds at maturity if the duration is not extended. There are two possible maturity extensions from the original deposit date. 

Payment on Account of Account Holder’s Death 

The specified nominee or legal heirs get the deposit amount in the event of the account holder’s death. The amount is divided among the numerous legitimate heirs in the ratios decided upon by the account’s holder. Should proportions be absent, the total will be split evenly.

Postal Fixed Deposit computation 

To find out how much interest you would get on a Post Office Fixed Deposit account without starting one, try our easy-to-use and free online calculator. All you need to do is fill in the desired amount to be invested, the interest rate that is currently available for the desired tenure, and the frequency of interest compounding. The precise amount you will get with interest will appear on the page right away.

FAQs

Q: What are the highest FD rates offered by the Post office? 

A: As per the new update, the highest FD rates provided by the Post office are 7.50%.

Q: How many years does it take for an FD to get doubled in the Post Office? 

A: It depends on the interest rate offered by the bank at the time you start FD. You can use rule of 72 to estimate this. You must divide 72 by the annual interest rate to get the years required for doubling the FD in the post office. 

Q: Is the online option available to open the FD account in the post office? 

A: Yes, you can open the post office FD account online using the official portal of the post office. 

Q: Is it safe to invest in a post office FD? 

A: Yes, Post office FDs are safe because they are backed by the government. It offers guaranteed returns and capital protection

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