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How To Open Fixed Deposit Account In Post Office Online

 

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About Post Office FD Scheme

The post office fixed deposit (POFD), also known as a “post office time deposit,” is a convenient alternative to bank-provided fixed deposits. An individual can earn a guaranteed return on money deposited through the Indian Postal Services’ fixed deposit scheme for a set period of time. Saving schemes have been one of the most popular and traditional schemes offered by Indian post offices for many years. Because it is backed by the Government of India, many Indian households still prefer to invest their hard-earned money in a Post Office fixed deposit scheme. People who do not have access to a bank can also invest in the nearest Post Office.

Features of Post Office FD

The features of Post Office Fixed Deposit can be summed up as follows:

Investment Tenure 1 year, 2 years, 3 years, and 5 years
Minimum deposit amount Rs.1,000
Payment mode Cheque, Cash, and Online Payment
Interest calculation and credit Annual
Withdrawal before maturity Allowed; Only after the completion of 6 months
Special Interest Rates for Senior Citizens Not Applicable
Tax Benefits under Section 80C Applicable only for 5-year Fixed Deposits

 

Benefits of Post Office Fixed Deposits

Interest: Furthermore, the individual earns interest on the return during the maturity period. The interest rate on POFD accounts is quite appealing, sometimes earning more than a bank FD.

Premature Withdrawal: You may withdraw the deposit amount prior to maturity, subject to the post office’s terms and conditions.

Tax Implications: You can claim an income tax deduction on the deposit you made in the 5-year fixed deposit account under Section 80C of the Income Tax Act of India, 1961.

Flexibility: The minimum amount required to open a POFD account is Rs.1000, with no maximum limit. You can change your POFD account from single to joint and vice versa.

Post Office Interest Rates 2021

Tenure General Public Interest Rate (% p.a.) Senior Citizens Interest Rate (% p.a.)
1 year 5.50% 5.50%
2 years 5.50% 5.50%
3 years 5.50% 5.50%
5 years 6.70% 6.70%

How to open FD Account in Post Office?

You can open a Post Office Fixed Deposit (FD) account in any post office in India, both online and offline.

Online Method:

The Post Office Fixed Deposit account can be opened online through the post office’s internet banking service. The following procedures must be followed:

  • Visit the post office’s official e-banking portal at ebanking.indiapost.gov.in.
  • To access the portal, enter your registered ID and password.
  • Under the ‘General Services’ tab, select the ‘Service Request’ option.
  • To initiate the Post Office Fixed Deposit or Time Deposit opening request, follow the on-screen instructions and select the ‘New Request’ option.

 

Eligibility to Open a Post Office FD Account

The account can be opened by:

  • A single adult can open the account.
  • Joint Account for Minors Over the Age of 10 (3 adults max.)
  • A guardian acting on behalf of a minor or a person with special needs.

 

Documents required for opening FD in Post office

To open a post office FD account, you will need the following documents:

  • 2 passport-sized photos
  • Photo ID proof, such as a voter ID card or an Aadhaar card, is required.
  • PAN Card Address Proof, for example, ration card, water bill, electricity bill, and so on.

 

How to Calculate Post Office FD Rates

Use an online FD calculator, which is free and simple to use, to determine how much interest you will earn on a Post Office Fixed Deposit account before you open it. All you have to do is enter the amount you want to invest, the current rate of interest for the tenure you want to invest in, and the frequency of interest compounding. The exact amount you will earn with interest will be displayed on the page immediately.

FAQs:

What is the procedure for renewing a Post Office Fixed Deposit account?

If you do not take funds from your Post Office Fixed Deposit account before it matures, it will be automatically renewed. However, the interest rate on the renewed investment will be determined by the rate of interest offered by the post office on the day of renewal.

Is there a lock-in period for Post Office Term Deposits?

The post-office term deposit has a one-year lock-in period and a maximum duration of five years.

Who is eligible to open a Post Office Fixed Deposit account?

A single adult, minor above the age of ten years, or legal guardian on behalf of a minor or person of unsound mind can open a Post-Office FD account.

Is it possible for minors to invest in Post Office FDs?

Yes, minors above the age of ten are eligible to apply for a Post Office FD.

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