Post Office Fixed Deposit interest rates are decided by the Government of India (every quarter) under Small Saving Schemes. Fixed Deposit Rates in Post Office. India Post gives you the choice of investment tenure. Investors can also re-invest in the same scheme after the maturity period if they wish to. The Post Office FD interest rates are one of the best rates for fixed deposits offered in India. The fixed deposit interest rate currently varies from 6.9% to 7.7%. All rights reserved, Built with ♥ in India, Stock Market The post office fixed deposit (POFD), also known as ‘post office time deposit’ is a convenient alternative to the fixed deposits provided by banks. 200 whereas there is no maximum limit under this scheme. The account can be opened with both cash and cheque. India Post, which operates a network of more than 1.5 lakh post offices provide customers with four different lock-in periods for fixed deposits. Risk-free: Post office fixed deposit is totally risk-free investment as no matter what the market condition is, you will get complete returns on maturity. Post Office Time Deposit, also known as Post Office Fixed Deposit, is a fixed deposit scheme similar to bank FD. The interest rate offered on the fixed deposits is in the tune of 7 -7.80% per annum. Tax Implications: Depositors can claim up the tax to a maximum of Rs. Privacy Policy. open a fixed deposit with the post office, Highest Post Office TD interest rate: 6.70% p.a. Mutual fund investments are subject to market risks. Fixed: A fixed rate of interest does not fluctuate and remains the same through out the lifetime of a savings account. The time period for these fixed deposits are one year, two years, three years and five years. Inflation Protection: Whenever the inflation rate dips below the term deposit interest rate, the depositor earns more. The interest rates under this scheme currently varies from 6.9% to 7.7%. It offers an interest rate of 5.5 percent for one-year time deposit to three years. There is a default fee of Rs 0.05 for every Rs 5 of deposit. What is the minimum deposit required to open a post office fixed deposit account? You can transfer your account from one post office branch to another by submitting a transfer application either in the post office you are transferring from or transferring to. Under online mode, the account opening facility is available online via Intra Operable Netbanking/Mobile Banking. Yes, you can open a post office fixed deposit account online through the mobile banking or intra-operable net banking facility. How to open an account in post office and its requirements? The exact maturity value of an FD can be calculated by providing the basic details pertaining to your FD such as amount invested, interest rate, tenure and type of interest compounding. 4) Investments made under the 5-year fixed deposit … 200. It was the year 1854 when Lord Dalhousie (Governor-General of India then) formed Indian Post. 1000. The fixed deposit rates in post office are decided periodically. Photo ID Proof that includes Aadhaar Card, Voter ID Card, etc. Highest Post Office TD interest rate: 6.70% p.a. Please read the scheme information and other related documents carefully before investing. The interest on Post Office deposits was revised on 1 July 2019. Liquidity: Like banks, post offices also have a deposit lock-in period. Post Office FD Interest Rate. The Government of India’s Department of Posts, Ministry of Communications, offers fixed deposit accounts that offer attractive interest rates with tenures that range from 1 year up to 5 years. Also, while filing income Tax Return (ITR), one can add their FD investments in the post office to claim deduction under section 80C of the Income Tax Act, 1961. One can check the interest they can earn on their post office FD by using an online post office FD calculator. A silent account is one in which the withdrawals have not been made for more than 3 years. The minimum deposit to be made is as low as Rs. There is no limit on the number of accounts that can be opened. Range of interest rates: 5.50% p.a. These interest rates are effective from 1 April 2020. 10,000 invested every month will fetch you Rs. 200, There is no cap on the maximum deposit amount, Joint account can also be opened by individuals, given that the account holders are two adults, Depositors can convert these accounts from single to joint and vice versa as per the need, Deposits made for a tenure of 5 years are eligible for tax benefits under, Post Office fixed deposits can be easily transferred from one post office to another. You can choose the investment plan of 1-year, 2-year, 3-year or 5-year. 50,000) for general and senior citizens respectively. Indian Postal Department is also known as India Post which provides its customers with Fixed Deposit options to park their surplus money and earn interest on it. You can see the below table to find the post office FD interest rates 2021 for different tenures. What is the highest Post Office fixed deposit interest rate? These rates are in turn determined as per the performance of government securities/bills. The New interest rate on 5 years Post office FD is 6.7%. ... # Post Office Fixed Deposits (FDs) Minimum of Rs.1,000 and in multiples of Rs.100. Post Office Fixed Deposit Rates & Post Office scheme. What is a Post Office Fixed Deposit? The return from POFD is guaranteed and backed by the government of India. The one-year, two-year, and three-year term deposit have no upper limit when it comes to investment, while the five-year fixed deposit allows a maximum amount of Rs.1.5 lakh per year. In India, there is a number of fixed deposit schemes offered by various public and private sector banks but still, a majority of people prefer to go with Post office fixed deposits over them owing to these reasons: Higher rate of interest: Post office FD interest rates are comparatively higher than the what market has to offer. To open a post office account online, one must have the following: Step 1: Visit the official website of Indian post and log in to post office e-banking using registered email id and password. *The Post Office Fixed Deposit interest rates are subject to change as per the requirements. Definitions. A time deposit account with India Post can be opened by: Know more about Post Office RD Interest Rates. However, deposits can be withdrawn prematurely in case of any emergency. Invest in top Bank fixed deposits now! You can avail a tax deduction under Section 80C of the Income Tax Act, 1961, for deposits with a tenure of 5 years. Step 3: Find the Service request and open the same. Variable: A variable rate of interest can go up or down throughout the lifetime of a savings account. Uh-oh! Interest rates are ranging between 5.5% to 6.7%, … 40,000, investors need to fill Form 15G and 15H (up to Rs. The minimum amount required to open a Post office FD account is Rs. The post office fixed deposit is also known as a time deposit. Currently, the highest interest rate offered by post office fixed deposit is 7.70% for 5 years’ tenure. Latest Post Office interest rates on FD for 1 to 4 years is 5.5%. The order is below: You will receive a call shortly from our customer support. Post Office Fixed Deposit Interest Rates. Investors can invest a certain amount for a fixed period for a fixed rate of interest. The trend of Post Office Interest Rates from Oct 2019 to Oct 2020. Premature withdrawal of a Post Office FD or Term Deposit can be made between 6 months to 1 year of the date of opening the account. This scheme of post office is utilized more as compared to bank deposits in rural areas. 5-year lock-in: Comes with a mandatory lock-in period of 5 years. One of the major advantages of opening an FD account in the post office is that TDS (Tax Deducted at Source) is not deducted on the interest earned. Withdrawal of funds before the maturity is referred to as premature withdrawal of post office fixed deposit. The post office offers several types of deposit schemes, also known as small savings schemes. Certain important points related to post office FD premature withdrawal have been enlisted below: Premature withdrawal is allowed only after 6 months from the date of opening the account. Leaving so soon? Follow the next appearing steps to complete the process. The Post Office Time Deposit (TD) Account, also known as the Post Office Fixed Deposit (FD) account, can be opened with a minimum of Rs.1,000 in multiples of Rs.100, with no maximum limit. 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