Post Office FD Scheme and Interest Rates
About Post Office FD Scheme
The Government of India’s Department of Posts, Ministry of Communications, provides fixed deposit accounts with attractive interest rates and terms ranging from one year to five years. The Indian Postal Services offers a Post Office Fixed Deposit Scheme, also known as a Post Office Term Deposit, as an investment option. Because it is a government-backed scheme, it is regarded as one of the most trusted investment options. Furthermore, investments in Indian post office FDs yield benefits such as a lower minimum deposit limit, higher returns, a flexible tenure, and a loan against FD facility, among other things.
Features of Post Office FD Interest Rates
- Post office FD accounts can be opened for one year, two years, three years, or five years.
- Accounts can be opened with either a check or cash.
- A single post office FD account may be converted into a joint account with a maximum of three adults. A joint account, on the other hand, can be converted to a single account.
- Premature withdrawals are permitted six months after the account is opened.
- The account can be opened in both offline and online modes.
- 5-year tax-saving post office deposits are deductible under Section 80C of the Income Tax Act of 1961, up to a maximum of 1.5 lakhs per fiscal year.
- Interest is paid annually and gets credited into the depositor’s savings account.
Post Office FD Interest Rates 2021
|Tenure||General Public Interest Rate (% p.a.)||Senior Citizens Interest Rate (% p.a.)|
Senior Citizen? Check Here – Post Office FD Rates For Senior Citizens
Eligibility of Post Office FD Account
Individuals in the following categories are eligible to open a post office FD account:
- Minors over the age of ten.
- A legal guardian acting on behalf of a person of unsound mind or a minor.
- In the case of a joint account, a maximum of three adults is allowed.
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.
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 Open a Post Office FD Account?
There are two methods for opening a post office fixed deposit account: online and offline.
- Visit your nearest India Post post office branch with the necessary KYC documents.
- Inquire about the most recent post office fixed-term deposit interest rates.
- You will be guided through the account opening process by an authorised representative.
- Open a term deposit and remember to keep the receipt for future reference.
Online account opening is possible through Mobile Banking or Intra Operable Net Banking. The following are the prerequisites for opening an online FD:
- A valid mobile phone number and email address are required.
- PAN Card is a personal identification number.
- A savings account that is currently active.
- KYC documentation has been verified.
- An active debit card or a DOP (Department of Post) ATM.
Log in to Post Office e-banking at: https://ebanking.indiapost.gov.in/ with your login ID and password.
- Select General Services.
- Now, select ‘Service Request.’
- To make the time deposit opening request, select the ‘New Request’ option.
- To finish the process, complete the remaining steps as directed.
Is it possible to open a post office FD account online?
Yes, you can open a post office fixed deposit account online via mobile banking or intra-operable net banking.
Is it safe to invest in Post Office FDs?
Yes, the fixed deposit at the Post Office is secure. As previously stated, the investment scheme is governed by the Post Office of India and is backed by the Central Government of India. Furthermore, the maturity amount is fixed and predetermined.
Is it possible to get a loan against a Post Office fixed deposit?
A loan against a Post Office FD is not currently available.
How do I move my account from one post office to another?
To transfer your account from one post office branch to another, simply fill out a transfer application form. You can submit the form at either the post office branch to which you are transferring or the one from which you are transferring. You must also submit your KYC documents and apply using the passbook and application form 1224SB 10(B)/NC-32.