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Post office FD interest rate

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17 Dec 2021 | 5 min read

The Government of India’s Department of Posts, Ministry of Communications, gives constant deposit bills that provide appealing interest rates with tenures that variety from 1 year as much as 5 years. The interest is payable yearly with the minimal deposit being Rs.1, 000 and no maximum restriction. 

Read More:- Which is Better - Personal Loan Fixed Interest Rate or Floating Interest Rate?

Post Office Fixed Deposit Rates 

Deposit Tenure 

Post Office FD rates (p.a.) 

1 year 

5.50% 

2 years 

5.50% 

3 years 

5.50% 

5 years 

6.70% 

Rates for Tax-Saving Post Office 5-years Fixed Deposit 

If you open a fixed deposit with the submitted post office for a tenure of 5 years, you may be eligible to assert tax advantages below Section 80C of the Income Tax Act, 1961. 

Tenure 

Regular Post Office FD rates (p.a) 

60 months 

6.70% 

Post Office Time Deposit Account 

The Post Office Time Deposit (TD) Account, additionally referred to as the Post Office Fixed Deposit (FD) account, may be opened with at least Rs.1, 000 in multiples of Rs.100, without a maximum restriction. 

Highlights of Post Office FD Interest Rates 

  • Highest Post Office TD interest fee: 6.70% p.a. for a tenure of 5 years 
  • Range of interest rates: 5.50% p.a. to 6.70% p.a. 
  • Interest fee for a tenure of 1 year: 5.50% p.a. 
  • Interest fee for a tenure of 2 years: 5.50% p.a. 
  • Interest fee for a duration of 3 years: 5.50% p.a. 

Read More:- Debt Mutual Funds vs. Fixed Deposits

Features of Post Office Fixed deposit 

  • Account may be transferred from one submitted post office to every other everywhere in the country 
  • Any wide variety of bills may be opened in any submitted post office everywhere in the country 
  • A single account may be transformed right into a joint account and vice versa 
  • Nomination facility is to be had on the time of starting the account and afterward too 
  • Account may be opened through cheque or cash 
  • The minimum amount is Rs.1,000. 
  • There isn't any maximum restriction to the deposit 
  • A minor’s account must be transformed after achieving majority 
  • The tenure may be prolonged by making an application 
  • Interest is payable yearly 
  • Interest is credited into the holder’s financial savings account 

Read More:- Earn 9.5% Interest on Fixed Deposit in Small Finance Bank

Who can open a Fixed Deposit Account? 

A time deposit account with India Post may be opened through: 

  • A single adult 
  • Maximum of 3 adults (in the case of a joint account) 
  • A Minor who's above 10 years of age 
  • A mother or father on behalf of a man or woman who's a minor or someone of unsound mind 

Premature Withdrawal of Post Office FD 

Premature withdrawal of a Post Office FD or Term Deposit may be made within 6 months to 1 year of the date of starting the account. However, if withdrawal isn't always allowed earlier than 6 months from the date of starting the account. 

TDS Deduction on Post Office FD 

You can avail of a tax deduction below Section 80C of the Income Tax Act, 1961, for deposits with a tenure of 5 years. This rule is relevant from 1 April 2007. 

Post Office FD calculator 

  • To understand precisely how much you can earn interest on a Post Office Fixed Deposit account even before then you open it, use an online FD calculator that's free and simple to use. 
  • All you need to do is input the amount you want to make investments, the modern fee of interest for the tenure you want to make investments in, and the sort of interest compounding frequency. 
  • The genuine amount you may earn with interest may be immediately displayed on the page 

Documents required for constant deposit 

  • Original identification evidence for verification 
  • Identity evidence together with PAN card, voter ID card, Aadhar card, using a license, passport 
  • Address evidence together with ration card, energy bill, PAN card, using license 

Read More:- Best Banks in India - Ranking on Various Loans, FD & Savings account

Conclusion: 

In the conclusion, Post office fixed deposit interest may vary depending on various factors. However, it is a great way of saving money. We hope you got the information you were and this article was helpful for you. 

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