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Post Office FD Interest Rates 2021

Post Office FD Interest Rates

Last Updated 25th Nov 2020

When it comes to the FD interest rate, the highest rate offered on Post Office FD is 6.70%. Latest Post Office FD interest rate for senior citizens, on the other hand ranges between 5.50% to 6.70%.

Tenure FD interest rates Senior Citizen FD interest rates
7 days to 1 year 5.50% 5.50%
1 year 1 day to 2 years 5.50% 5.50%
2 years 1 day to 3 years 5.50% 5.50%
3 years 1 day to 5 years 6.70% 6.70%
Earn upto 6.95% on FD APPLY NOW

Post Office Fixed Deposit Features

Post Office FDs are one the best investment options available for depositors who are looking to invest in a fixed income instrument and earn higher returns than the savings account. Key Features of Post Office Fixed Deposit are:

  • Deposit Amount : Post Office FD can be opened with an amount as a low ₹ 1,000 to up to No Limit.
  • FD Tenure : Ranges between 7 days to 5 years.
  • Interest Rate Range : 5.50% p.a. to 6.70% p.a.
  • Senior Citizens FD Rate : 5.50% p.a to 6.70% p.a.
  • Highest Interest Rate : As per today’s rate, Post Office’s highest interest rate on FD is 6.70% offered for a tenure of 5 years.
  • Safety of Post Office Deposits : Post Office deposits are covered under the Deposit Insurance Scheme of RBI in which up to ₹ 5 lakh of all deposits of a depositor are insured by DICGC.
  • Loan against FD : Post Office provides loan against FD to help its depositor meet their liquidity requirements without breaking the FD.
  • Auto- Renewal Facility : Available
  • Nomination Facility : Available
  • Popular FD Schemes : National Savings Time Deposit Account

Post Office FD Interest Rates Today

Interest rates on Post Office deposits are updated regularly by the Government of India. The following are updated Post Office FD interest rates 2021:

Tenure Interest Rate
7 days to 1 year 5.50%
1 year 1 day to 2 years 5.50%
2 years 1 day to 3 years 5.50%
3 years 1 day to 5 years 6.70%

Post Office FD Rates for Senior Citizens

With an aim to attract senior citizens above the age of 60 years to invest in the fixed deposits, Post Office offers a higher interest rate to senior citizens than the general public. Listed below are the Post Office fixed deposits interest rates for senior citizens 2021:

Tenure Interest Rate for senior citizens
7 days to 1 year 5.50%
1 year 1 day to 2 years 5.50%
2 years 1 day to 3 years 5.50%
3 years 1 day to 5 years 6.70%

Best FD Plan as per Post Office FD Rates

To invest in Post Office fixed deposit, you must compare Post Office Fixed Deposit Rates for varying tenures. Post Office FD Interest Rates 2021 are best for the deposits with a tenure of 3 years 1 day to 5 years, wherein the current Post Office Fixed Deposit Interest Rates is 6.70 p.a.

If you are looking to invest in short term deposits with Post Office, the interest rate of Post Office for FD ranges from 5.50% p.a. to 5.50% p.a. These deposits are known as short term deposits and are offered with a tenure of 7 days to less than 365 days. Short term Post Office Fixed Deposit Rates for senior citizens range from 5.50% to 5.50% p.a.

If you want to invest in long term deposits, Post Office Fixed Deposit Rates with tenure ranging from 5 years to 5 years are a good choice with interest rates on deposits at 6.70%.Post Office Senior citizens FD Rates are offered at special rates with the highest deposit rates of6.70% p.a. on long term FDs.

Below-mentioned is some of the benefits of opening an FD account in Post Office:

  • Interest on deposit is paid only at the time of the maturity
  • Post Office also offers a nomination facility on its fixed deposits.
  • Extra interest of 0.25% to 0.50% is payable to the senior citizens.
  • Availability of auto-renewal facility on the deposit.
  • Earn higher returns on the money deposited.

Documents required to open Fixed Deposit Account in Post Office

  • KYC documents and Passport size photos
  • Age proof (Birth certificate, matriculation certificate, etc,)
  • Passport size photographs
  • Bank A/c details

Post Office Fixed Deposit Rates – Premature Withdrawal

You can close your Post Office FD account prematurely, however Post Office charges a penalty of 1% for premature withdrawal. Also, The penal provisions for premature closure on Post Office FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit Post Office

Post Office offers loans up to 90% against its own deposit. Note that Post Office will not give you loan against FD of any other bank. Post Office offers Loan against FD at the rate of 6.5% to 7.7%

Illustration - Mr. Rahul has opened a fixed deposit of ₹ 1,00,000 for 2 years in Post Office. The borrower later decided to take a loan against his FD. The bank has approved a credit limit of 90% against his FD at 10% interest rate. Now, if the borrower draws ₹ 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on ₹ 90,000 available for 1 month only. The amount he repays after 1 month is ₹ 90,000. So, the interest charged on the loan taken is ₹ 0.

FD Account Opening Process at Post Office

To open an Post Office Fixed Deposit, follow the steps as mentioned below:

  • Visit the official website of Post Office and log in to your FD account.
  • From the menu, choose the Fixed Deposit option, the Type of FD you want to open and click on proceed.
  • Enter the deposit amount and select the ‘Senior Citizen’ option if you are above 60.
  • Now, choose the deposit tenure and interest payout frequency.
  • Finally, click on Submit to open the Post Office FD after reading the terms and conditions.

To open a Fixed Deposit account in Post Office, you can visit the official website and login to your account. Choose the Fixed Deposit option from the menu and select the Type of FD you want to open and proceed. After this, you have to fill the deposit amount and select ‘Senior Citizen’ option if you are above 60. You have to choose the tenure of deposit and interest payout frequency. Click on Submit to open the Post Office FD after reading the terms and conditions.

Nomination Facility on Post Office FD

Post Office also offers a nomination facility on Fixed Deposit to claim the amount in case of the depositor's death. You can file the details of only 1 nominee when opening an Post Office FD account. The nominee has to submit his/her identification proof at the time of claim.

Post Office Fixed Deposit Scheme

National Savings Time Deposit Account

Description:

  • The Department of Post Ministry of Communication Government offers the Post Office Time Deposit Account (TD). It is an investment in which a lump-sum sum amount is deposited at an agreed rate of interest for a fixed period, ranging from 1 month to 5 years. Post Office Time Deposit Account (TD) can be availed at post offices. It helps in generating wealth and saving taxes. Below mentioned are the features of National Savings Time Deposit Account:
  • Account can be opened by cash or cheque
  • Nomination facility is available
  • Account can be transferred from one post office to another
  • Minor after attaining the age of 18 years has to apply for conversion of the account in his name.
  • Interest is paid annually
  • Premature withdrawal not allowed before the expiry of 6 month, If closed between 6 month to 12 month from date of Opening, Post Office Saving Accounts interest rate will be payable
  • Online Account Opening facility is available
  • The corpus under 5 Years Time Deposits qualifies for the benefit of Section 80C
  • Minimum deposit of Rs. 1000 and in multiple of Rs. 100
  • No maximum limit.

Who is eligible?

  • (i) A single adult (ii) Joint Account (Maximum 3 adults) (iii) Minor above 10 years of age (iv) A guardian on behalf of a minor or Person of unsound mind

FAQs

What is the highest fixed deposit interest rate for Post Office?

You can earn a maximum interest of 6.70% on Post Office fixed deposit.

Are there any special rates for senior citizens FD of Post Office?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 5.50% to 6.70%. Compared to this, Post Office senior citizens FD are in the range of 5.50% to 6.70%.

What are the current Post Office FD interest rates 2021?

Current interest for FD in Post Office ranges between 5.50% - 6.70%.

Is there any minimum amount that I have to give for opening a Fixed Deposit with Post Office?

The minimum deposit amount required to book an FD with Post Office is ₹ 1,000.

Did Post Office increase FD rates in 2021?

Presently, Post Office offers personal loans at an interest rate starting at 6.70%. There has been no change in personal loan rates of Post Office for a long time and continue to stand at 6.70%.

Is it possible to change the tenure of my existing fixed deposit account with Post Office?

No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.

What are the implications of opening an FD bank account without having PAN?

Following are the implications for the customers opening an FD account with Post Office without their PAN card

  • Your TDS will be deducted at the rate of 20% as against 10% under section 206AA
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

Can a customer open an FD account online in Post Office?

Yes, you can submit your application for opening an FD account on the website of Post Office. After submitting the application, you will be contacted by the bank’s representative for the further process, which includes filling an application process and submitting KYC documents.

In how many years FD will double in Post Office?

The interest rate on FD depends upon the tenure you choose. To know the time period in which your FD amount will get doubled, you need to divide 72 the 6.70%. For Post Office FD the number of years in which your FD will get doubled is; 72/6.70 = 11

Can I get monthly interest on FD in the Post Office?

Yes, you can get monthly interest on FD in the Post Office under the Post Office Monthly Income Scheme. The scheme pays interest each month and is suited for those who seek regular or supplementary income from their investments.

What is the interest of 1 lakh in the Post Office?

The interest on Post Office fixed deposit depends on the tenure of the FD for which it is deposited. Below mentioned is the Post Office FD interest rate 2021 across different tenures.

TenureInterest Rate
7 days to 1 year5.50%
1 year 1 day to 2 years 5.50%
2 years 1 day to 3 years 5.50%
3 years 1 day to 5 years 6.70%


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