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Post Office Domestic Term Deposits
The Post Office Domestic Term Deposits tenure ranges from min to max 5 Year 1 Days . The ROI ranges from 6.90% to 7.50 % for the general public. The lock-in period for this scheme is
Post Office Domestic Term Deposits Scheme for amount above ₹ 1,000
The rate of interest for deposited amount above ₹ 1,000 is as below
Tenure | Interest Rate for General Public (p.a.) | Interest Rates for Senior Citizens (p.a.) |
|---|---|---|
| Upto 1 Year | 6.90% p.a. | -- p.a. |
| Upto 2 Year | 7.00% p.a. | -- p.a. |
| Upto 3 Year | 7.10% p.a. | 6.25% p.a. |
| Upto 5 Year 1 Days | 7.50% p.a. | 6.25% p.a. |
Key features of Post Office Domestic Term Deposits Scheme
Summary of Post Office Domestic Term Deposits Scheme features :
| Mutual Fund Schemes | Domestic Term Deposits |
| CRISIL Rating | -- |
| Lock-in Days | -- |
| Loan Against FD | NA |
| Pre-mature Withdrawal | Available |
| FD Nominee | Yes |
| Tenure | Upto 5 Year 1 Days |
| General Public | 6.90% to 7.50 % |
| Senior Citizen | 6.25% to 6.25 % |
| Amount | -- |
*Interest rates are subject to change at the discretion of the bank. These Interest rates are with effect from 10 November 2021.
What are Post Office Domestic Term Deposits
Post Office Domestic Term Deposits are fixed-term deposit schemes offered by India Post to Indian citizens with Rs. 1,000 minimum investment. Deposit terms range from one year to five years, with longer terms yielding higher interest rates. For risk-averse investors, the scheme provides guaranteed returns and is a safe investment option.
Eligibility Criteria for Post Office Domestic Term Deposits
- Post Office Domestic Term Deposits are available to Indian citizens and Hindu Undivided Families (HUFs).
- Minors can invest with the assistance of a guardian.
- The minimum investment amount is Rs. 1,000, with no upper limit.
Documents Required for Post Office Domestic Term Deposits
The following documents are required to invest in Post Office Domestic Term Deposits:
- KYC documents such as an Aadhaar card, a PAN card, or a passport
- a photograph the size of a passport
- Account application and nomination form (if applicable)
- Utility bills, bank statements, or rental agreements are examples of proof of address (in case the address is different from the address mentioned in KYC documents)
KEY ATTRACTIONS of Post Office Domestic Term Deposits
Post Office Domestic Term Deposits are a popular investment option in India because of their appealing characteristics, such as:
- Low-risk and guaranteed returns
- Tax benefits under Section 80C of the Income Tax Act.
- The minimum investment amount is low, and there is no maximum investment amount, making it suitable for all types of investors.
- The interest rates are competitive and vary depending on the duration of the deposit, making it an excellent investment option for both short-term and long-term financial goals.
Features & Benefits of Post Office Domestic Term Deposits
Post Office Domestic Term Deposits include the following features and benefits:
- Low risk: Because the scheme is backed by the Government of India, it is a low-risk investment option.
- Guaranteed returns: The scheme guarantees the investor’s investment returns, providing financial security.
- Deposit tenure is flexible, ranging from one year to five years, allowing investors to select a tenure that best suits their financial goals.
- Attractive interest rates: The interest rates are competitive and vary depending on the duration of the deposit, making it an excellent investment option for both short-term and long-term financial goals.
- Tax advantages: The investment qualifies for tax advantages under Section 80C of the Income Tax Act.
How to Apply for Post Office Domestic Term Deposits
To apply for Post Office Domestic Term Deposits, complete the following steps:
- Visit your local post office and pick up an account opening form for the scheme.
- Fill out the form with complete personal and contact information.
- Attach any required documentation, such as KYC documents, a passport-sized photograph, and proof of address.
- Submit the form and invest by paying the bare minimum.
- Once the investment is made, the investor will receive a passbook containing all of the investment’s details.
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Frequently Asked Questions
What is the current interest rate of a post office term deposit?
The following are the interest rates for Post Office Domestic Term Deposits as of April 2023:
The interest rate on a one-year deposit is 6.8%.
The interest rate on a 2-year deposit is 6.9%.
The interest rate on a 3-year deposit is 7.0%.
The interest rate on a 5-year deposit is 7.5%.
What is a 5-year term deposit in a post office?
The Post Office 5-year term deposit is a fixed-term deposit scheme that allows investors to invest a lump sum amount for 5 years at an attractive interest rate. This scheme is backed by the Indian government and is a safe investment option with guaranteed returns.
What is the interest rate for post office term deposit 2023?
The interest rate on Post Office Term Deposits is 6.8% for a 1-year, 6.9% for a 2-year, 7.0% for a 3-year and 7.5% for a 5-year deposit as of April 2023. It is important to note that these interest rates are subject to change and may vary depending on market conditions.
