Now Investing In Post Office FD Even More Rewarding, Check New FD Rates Here
Post office fixed deposit or Time Deposit (TD) as the post office people call, it is an attractive option for a safe investment at attractive rates. There are many benefits of investing in post office FD apart from the rates. Post office investments are secure as they are backed by government guarantee. In addition, post office investments are accessible from the remotest corners of the country, owing to a vast network of post offices, spread across the length and breadth of the country.
Post office FDs can be opened with minimum documentation and offer the flexibility of premature withdrawals with minimum penalty. This gives you easy access to your funds in case of an emergency. Even a minor aged above 10 years can open a post office FD in his own name.
Post Office FD Rates
1 Year 5.5% p.a.
2 Year 5.5% p.a.
3 Year 5.5% p.a.
5 Year 6.7% p.a.
Tax Benefits
Investments made under the 5-year scheme are eligible for tax benefits u/s 80C of Income Tax Act, 1961
Minimum Investment
The minimum investment in any of the above schemes is Rs 1000/- and can be increased in the multiples of 100 with no upper limit.
Check Out Post Office FD Web Story Here
Features of Post Office FD
The interest is calculated quarterly but payable annually, either through withdrawals or by credit to the post office savings account.
On maturity, the depositor can extend the FD for another tenure for which the account was initially opened.
The FD can be pledged or transferred as security as per the National Savings Time Deposit Rules 2019.
Eligibility for Post Office FD
Anyone can open the FD in the following ownership pattern
A single adult
A joint account with up to a maximum of 3 adults
A guardian on behalf of a minor
A guardian on behalf of person with unsound mind
A minor above 10 years of age in his own name
Premature Withdrawal
Premature withdrawal is not allowed in post office FD within 6 months of opening the account. After 6 months but within 1 year, post office savings account interest rate will be payable on the number of months of the deposit. For FDs of 2,3,5 years tenor, if the deposit withdrawn after 1 year, then 2% less than the applicable FD rate will be paid for each completed year and post office savings interest for the remaining months.
For example, if you opened an FD for 3 years and decided to close it after 2 years and 3 months, you will get interest at the rate of 3.5% p.a. for 2 years and the prevailing savings account rate for the remaining 3 months.
Time deposit rates are reviewed and revised by the Government of India quarterly and are updated on the website of India Post. Check here.
