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Post Office Fd Interest Rate
Post Office offers a number of fixed deposit schemes. The FDs can be of tenure ranging from min to 5 Year 1 Days . The roi for different schemes starts from 6.90% to 7.50 % for the general public and 6.25% to 6.25 % for senior citizens. The min amount required to open an Fixed Deposit with Post Office is Rs.1,000
Types Of Post Office Fixed Deposit Schemes
Post Office is offering a different kinds of fixed deposits to its customers. These are :
Name of Schemes | For General Citizen (p.a.) | For Senior Citizen (p.a.) |
|---|---|---|
| Post Office Domestic Term Deposits | 6.90% to 7.50 % | 6.25% to 6.25 % |
Post Office Domestic Term Deposits
View SchemeGiven below are the latest Post Office Domestic Term Deposits, ranging from to 5 Year 1 Days as of September, 2022.
Tenors | Interest Rates for Public (p.a.) | Interest Rates for Senior Citizens (p.a) |
|---|---|---|
| Upto 1 Year | 6.90% p.a. | -- p.a. |
| Upto 2 Year | 7.00% p.a. | -- p.a. |
| Upto 3 Year | 7.10% p.a. | 6.25% p.a. |
| Upto 5 Year 1 Days | 7.50% p.a. | 6.25% p.a. |
The post office fixed deposit interest rate is a wise investment for those who are looking for a safe and trustworthy method of earning some extra income. With a fixed deposit, you have all the benefits of a savings account, including fixed interest rates, no monthly fees, and easy access to your money.
Post Office FD Interest Rate 2023: Overview
The Indian postal service offers post office fixed deposit options that offer a number of features and benefits to the investors. The investment has become the sought after investment tool owing to the higher interest rate and increased safety and reliability. Investments in fixed deposit accounts are popular because they provide security and peace of mind - investors know their money will grow at a set rate. With a post office fixed deposit account, you can open an account with a minimum deposit of Rs. 500, with a fixed interest rate.
Features & Benefits of Post Office FD Interest Rate
Looking for an investment opportunity that is reliable and secure? Consider opening a Post Office fixed deposit account. You can benefit from the following features:
- Individuals are allowed to open as many FD accounts as they wish in their own names or jointly with other account holders.
- FDs can be opened with a minimum deposit of INR 1,000 and no maximum deposit.
- FDs can be opened at Post Offices by making a cash or check payment. Interest is paid on an annual basis.
- In contrast to days and months, Post Office FDs can only be held for years.
- You will receive interest payments on your fixed deposit through your savings account.
- In accordance with Section 80C of the Income Tax Act, 1961, you can claim exemptions under five-year Post Office Fixed Deposits. Deductions up to INR 1,50,000 are allowed under the same.
- Unless you are a senior citizen, interest in the Post Office FD will be taxable.
- Senior citizens are tax-free on interest up to INR 50,000.
- It is possible to convert an individual FD account into a joint account and vice versa.
Post Office Fd Interest Rate: Eligibility Criteria
Given below are some of the requirements the investor will have to fulfill in order to invest in a post office fixed deposit account:
| Criteria | Eligibility Criteria |
| Nationality | Indian Residents |
| Single Adult | Minimum Age: 18 years |
| Minor | Minimum Age: 10 years |
| Minor (less than 10 years) | The account can be opened by a guardian |
| Person of unsound mind | The account can be opened by a legal guardian |
Documents Required For Opening A Post Office Fd Interest Rate
You will be required to submit the following documents while investing in a post office FD:
| Criteria | Eligibility Criteria |
| Application Form | Application form along with two passport sized photographs |
| Identity Proof (any one) | ● Aadhaar Card ● Passport ● Voter ID ● PAN Card ● Driving License |
| Address Proof (any one) | ● Aadhaar Card ● Passport ● Voter ID ● PAN Card ● Driving License ● Utility Bills ● Rent Agreement |
How is Interest Rate Calculated on Post Office Fixed Deposits?
Post Office Fixed Deposits can be invested for one year, two years, three years, or five years. The interest rates for these investments vary according to the investment tenure and amount. . Interest on such fixed deposits is calculated quarterly, but is payable annually. In addition, a Post Office fixed deposit is subject to TDS (tax deducted at source). An investor can claim tax exemptions and deductions on a 5-year Post Office FD U/S 80C. The present interest rates on Post Office Fixed Deposits are tabulated below:
| Tenure of FD | Regular Investors | Senior Citizens |
| 1 year | 5.50% | 5.50% |
| 2 years | 5.50% | 5.50% |
| 3 years | 5.50% | 5.50% |
| 5 years (Tax Saving Scheme) | 6.70% | 6.70% |
Post Office Fixed Deposit Returns
The table given below shows the estimated returns from a post office fixed deposit assuming the investor deposits an amount of Rs. 1,00,000:
| Tenure | Deposit Amount | Interest Rate | Return on Investment | Total Value |
| 1 year | INR 1,00,000 | 5.50% | INR 5,614 | INR 1,05,614 |
| 2 years | INR 1,00,000 | 5.50% | INR 11,544 | INR 1,11,544 |
| 3 years | INR 1,00,000 | 5.50% | INR 17,807 | INR 1,17,807 |
| 5 years | INR 1,00,000 | 6.70% | INR 39,407 | INR 1,39,407 |
Comparison Between Post Office Fixed Deposit Rates and Other Banks (Tax Saver FDs)
The table given below provides a comparison between an investment in Post Office Fixed Deposits and investment schemes offered by other banks:
| Bank | Regular Investors | Senior Citizens |
| Post Office | 6.70% | 6.70% |
| SBI | 5.50% | 6.30% |
| HDFC | 5.60% | 6.10% |
| Axis Bank | 5.75% | 6.50% |
| IndusInd Bank | 6.50% | 7.00% |
| RBL Bank | 6.30% | 7.00% |
| IDBI Bank | 5.60% | 6.35% |
| IDFC First | 6.50% | 7.00% |
How to Open A Post Office Fixed Deposit?
You can open a fixed deposit by visiting the official website of India Post or by visiting the nearest India Post office:
Online Mode:
Step 1: Visit the official e-banking website of India Post DOP Internet Banking
Step 2: Use your credentials to sign in
Step 3: Go to the 'General Services' tab and click 'Service Request'
Step 4: Follow the instructions on the screen and click on 'New Request' to open the fixed deposit.
Step 5: Complete the application form and make an upfront payment
Step 6: Click on ‘Submit’.
Step 7: A confirmation email will be sent to your email ID when the FD has been successfully opened.
Offline Mode:
Step 1: Visit the nearest India Post branch office
Step 2: Fill out an application for FDs as specified.
Step 3: Attach the required documents to the form
Step 4: Make the first deposit by cash or cheque
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Frequently Asked Questions
What is the current rate of FD in the Post Office?
The current Post Office fixed deposit interest rate is 5.50% p.a. and 6.70% p.a. for a five year tax saving FD.
Which fixed deposit is best in the Post Office?
The Time Deposit offered by the Post Office is considered as one of the best fixed deposits.
What is the interest of 1 lakh FD in the post office?
If you have invested INR 1 lakh in a Post Office FD for a five year term, you can earn an interest of INR 39,407.
What is a 5 year time deposit in the Post Office?
A five year time deposit is a tax saving FD that allows you to claim tax exemptions and deductions under the Income Tax Act, 1961.
How many years will it take for a Post Office FD to double itself?
If you invest in a five year deposit, it will take approximately 10 years and 5 months to double itself. Furthermore, if you invest in one-two-three year FDs the time taken to double the investment is 13 years
