MyLoanCare is a FREE of cost service for borrowers

MyLoanCare - Baat Aapke Interest Ki

MyLoanCare Customer Ratings - 4.5/5.0

India Post Office Fixed Deposit

India Post Office FD Scheme

Last Updated 25th Nov 2020

India Post Office fixed deposit is a reliable, secure and beneficial investment option that offers various benefits such as guaranteed returns, Government insurance, loan borrowing facility and flexible fixed deposit tenure.

Interest Rate 5.50% to 6.70%
Minimum Tenure 7 days
Maximum Tenure 5 Years
Deposit Amount Rs. 1000
Maximum Deposit No Limit
    Earn upto 6.95% on FD APPLY NOW

    India Post Office FD

    India Post Office is one of the leading fixed deposit providers in the country. The Bank offers FD with flexible tenures ranging between 7 days to 5 Years. Apart from that, India Post Office FD offers regular returns on fixed deposit ranging between 5.50% to 6.70%. For senior citizens, the interest rates on fixed deposits range between 5.50% to 6.70%. In addition to that, India Post Office fixed deposit plans offer tailor-made fixed deposit products for different kinds of fixed deposit investors.

    Types of India Post Office Fixed Deposit Schemes

    Different type of India Post Office term deposit products offered to the investors are listed as follows:

    National Savings Time Deposit Account

    Description:

    • 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.
    • 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 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.

    Eligibility:

    • (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

    Benefits of India Post Office FD

    India Post Office fixed deposit is a popular investment option due to a number of benefits it provides to the FD investors. Some of these are listed as follows:

    • Guaranteed returns: The best thing about India Post Office FD is that it offers guaranteed and assured returns to the investors. The return offered on fixed deposit is regulated by the Bank on a monthly, or quarterly basis, as per the Bank’s choice. Currently, India Post Office offers FD rates up to 6.70%. The interest rates offered on India Post Office FD is not only assured but also way higher than a savings account.
    • Insured by the Government: The Deposit Insurance and Credit Guarantee Corporation offers deposit insurance of ₹ 5 Lakh to fixed deposits across all banks. Investing in a FD with a FD provider with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option.Thus, India Post Office term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.
    • Loan against FD: The investment made in FD scheme is not only a reliable investment option but can also act as an asset. This is because India Post Office fixed deposit allows one to borrow a secured loan against India Post Office FD. The Bank allows a loan up to 90-95% of the FD amount. The best part about India Post Office loan against fixed deposit is that one does not need to break his or her FD to borrow the loan.
    • Flexible tenures: India Post Office FD offers the investors the flexibility to choose the investment tenure as per their convenience. India Post Office offers fixed deposit for a minimum tenure of up to a maximum tenure of 5 Years. India Post Office offers different interest rates across FD tenures.
    • Flexible investment: Apart from the flexibility of tenure, India Post Office fixed deposit offers the flexibility of funds to FD investors as funds can be invested with a minimum amount of Rs. 1000. Apart from that, one can invest in the India Post Office FD up to a maximum of No Limit.

    Premature Withdrawal Terms and Conditions

    Though a fixed deposit with India Post Office means depositing funds for a fixed period of time in expectation of a regular return. However, keeping in view the instability in the markets, the Bank allows premature withdrawals of funds from a fixed deposit. This means that investors can withdraw their funds before the date of maturity to fulfil their urgent financial conditions.

    Withdrawing funds prematurely from India Post Office will attract an interest rate lowered by Allowed below the effective rate on the date of booking the FD. The penalty charged on fixed deposits is valid only on fixed deposits with a tenure greater than seven days. In case of premature withdrawal of India Post Office fixed deposits with tenure less than seven days, the bank does not pay any interest.

    Eligibility Criteria for India Post Office FD

    India Post Office FD facility can be availed by the following type of investors:

    • Indian Citizens
    • Members of HUFs or the Hindu Undivided Family
    • Business firms
    • Local governing bodies
    • Government departments
    • Employees of private limited companies
    • Trust accounts

    Documents for India Post Office FD

    India Post Office fixed deposit requires one to submit the following documents:

    • Passport size photographs
    • Identity proofs such as Aadhar card, passport, PAN card, and driving license.
    • Address proofs such as passport, ration card, utility bills such as water, gas or electricity bill.
    • Age proof such as birth certificate, matriculation passing certificate, and Voter ID card.
    • Bank account details such as passbook and account number.

    FAQs

    What is the loan against FD repayment tenure?

    India Post Office offers the loan against FD facility to the FD investors with a repayment tenure of up to 5 Years.

    What is the minimum investment for FDs under India Post Office?

    India Post Office FD can be availed with a minimum deposit of Rs. 1000.

    What is the minimum amount for a fixed deposit in India Post Office?

    The minimum amount required for a fixed deposit investment in India Post Office fixed deposit is Rs. 1000.

    What is the current interest rate on FD in India Post Office?

    Currently, India Post Office offers an interest rate ranging between 5.50% to 6.70% on its fixed deposits.

    What is the penalty for early withdrawal?

    The penalty for early withdrawal ranges between 0.5% to 1% in most cases, based on the loan amount and tenure.

    What is the minimum FD tenure for which a fixed Deposit account can be opened in India Post Office?

    India Post Office fixed deposit can be opened with a minimum tenure of 7 days.


    Notification ×
    • Home Loan

      Home Loan starting at 6.75%. Cashback of up to ₹ 1,000 plus Free COVID Insurance of ₹ 1 lakh.

      Apply Now
    • Personal Loan

      Instant Personal Loan with Cashback of up to ₹ 1,000 or Free Corona Insurance Cover of up to ₹ 5 Lakhs.

      Check Offers
    • Fixed Deposit

      AAA rated FDs with returns as high as 6.95%.

      Invest Now
    • Demat Account

      Open Instant Demat Account and Get Cashback of ₹ 500*. *T&C Apply

      Apply Now
    • DBS Savings Account

      Open Account Online and Cashback of up to ₹ 4,800.

      Open Account
    • Gold Loan

      Instant Gold Loan starting at 9.90% with Cashback of up to ₹ 500 or Free Corona Health Cover of upto ₹ 1 Lakh.

      Apply Now
    • Loan Against Property

      Best Loan Against Property Offers starting @ 7.50%. Cashback of up to ₹ 1,000*.

      Apply Now
    • Credit Card

      Get amazing offers, discounts and welcome gift vouchers on SBI Credit Cards.

      Apply Now
    *Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
    Loader
    Please wait while your information is being processed...