Post Office Fd Interest Rate

The post office fixed deposit interest rate is a wise investment for those who are looking for a safe and trustworthy method of earning some extra income. With a fixed deposit, you have all the benefits of a savings account, including fixed interest rates, no monthly fees, and easy access to your money.

Post Office FD Interest Rate 2023: Overview

The Indian postal service offers post office fixed deposit options that offer a number of features and benefits to the investors. The investment has become the sought after investment tool owing to the higher interest rate and increased safety and reliability. Investments in fixed deposit accounts are popular because they provide security and peace of mind – investors know their money will grow at a set rate. With a post office fixed deposit account, you can open an account with a minimum deposit of Rs. 500, with a fixed interest rate.

Features & Benefits of Post Office FD Interest Rate

Looking for an investment opportunity that is reliable and secure? Consider opening a Post Office fixed deposit account. You can benefit from the following features:

• Individuals are allowed to open as many FD accounts as they wish in their own names or jointly with other account holders.
• FDs can be opened with a minimum deposit of INR 1,000 and no maximum deposit.
• FDs can be opened at Post Offices by making a cash or check payment. Interest is paid on an annual basis.
• In contrast to days and months, Post Office FDs can only be held for years.
• You will receive interest payments on your fixed deposit through your savings account.
• In accordance with Section 80C of the Income Tax Act, 1961, you can claim exemptions under five-year Post Office Fixed Deposits. Deductions up to INR 1,50,000 are allowed under the same.
• Unless you are a senior citizen, interest in the Post Office FD will be taxable.
• Senior citizens are tax-free on interest up to INR 50,000.
• It is possible to convert an individual FD account into a joint account and vice versa.

Post Office Fd Interest Rate: Eligibility Criteria

Given below are some of the requirements the investor will have to fulfill in order to invest in a post office fixed deposit account:

Criteria	Eligibility Criteria
Nationality	Indian Residents
Single Adult	Minimum Age: 18 years
Minor	Minimum Age: 10 years
Minor (less than 10 years)	The account can be opened by a guardian
Person of unsound mind	The account can be opened by a legal guardian

Documents Required For Opening A Post Office Fd Interest Rate

You will be required to submit the following documents while investing in a post office FD:

Criteria	Eligibility Criteria
Application Form	Application form along with two passport sized photographs
Identity Proof (any one)	●     Aadhaar Card ●     Passport ●     Voter ID ●     PAN Card ●     Driving License
Address Proof (any one)	●     Aadhaar Card ●     Passport ●     Voter ID ●     PAN Card ●     Driving License ●     Utility Bills ●     Rent Agreement

How is Interest Rate Calculated on Post Office Fixed Deposits?

Post Office Fixed Deposits can be invested for one year, two years, three years, or five years. The interest rates for these investments vary according to the investment tenure and amount. . Interest on such fixed deposits is calculated quarterly, but is payable annually. In addition, a Post Office fixed deposit is subject to TDS (tax deducted at source). An investor can claim tax exemptions and deductions on a 5-year Post Office FD U/S 80C. The present interest rates on Post Office Fixed Deposits are tabulated below:

Tenure of FD	Regular Investors	Senior Citizens
1 year	5.50%	5.50%
2 years	5.50%	5.50%
3 years	5.50%	5.50%
5 years (Tax Saving Scheme)	6.70%	6.70%

Post Office Fixed Deposit Returns

The table given below shows the estimated returns from a post office fixed deposit assuming the investor deposits an amount of Rs. 1,00,000:

Tenure	Deposit Amount	Interest Rate	Return on Investment	Total Value
1 year	INR 1,00,000	5.50%	INR 5,614	INR 1,05,614
2 years	INR 1,00,000	5.50%	INR 11,544	INR 1,11,544
3 years	INR 1,00,000	5.50%	INR 17,807	INR 1,17,807
5 years	INR 1,00,000	6.70%	INR 39,407	INR 1,39,407

Comparison Between Post Office Fixed Deposit Rates and Other Banks (Tax Saver FDs)

The table given below provides a comparison between an investment in Post Office Fixed Deposits and investment schemes offered by other banks:

Bank	Regular Investors	Senior Citizens
Post Office	6.70%	6.70%
SBI	5.50%	6.30%
HDFC	5.60%	6.10%
Axis Bank	5.75%	6.50%
IndusInd Bank	6.50%	7.00%
RBL Bank	6.30%	7.00%
IDBI Bank	5.60%	6.35%
IDFC First	6.50%	7.00%

How to Open A Post Office Fixed Deposit?

You can open a fixed deposit by visiting the official website of India Post or by visiting the nearest India Post office:

Online Mode:

Step 1: Visit the official e-banking website of India Post  DOP Internet Banking

Step 2: Use your credentials to sign in

Step 3: Go to the ‘General Services’ tab and click ‘Service Request’

Step 4: Follow the instructions on the screen and click on ‘New Request’ to open the fixed deposit.

Step 5: Complete the application form and make an upfront payment

Step 6: Click on ‘Submit’.

Step 7: A confirmation email will be sent to your email ID when the FD has been successfully opened. 

Offline Mode:

Step 1: Visit the nearest India Post branch office

Step 2: Fill out an application for FDs as specified.

Step 3: Attach the required documents to the form

Step 4: Make the first deposit by cash or cheque