Since then this agency of the government is serving India in its 23 circles with 1, 55, 000 post offices. The minimum balance required for a post office FD account is Rs.1,000. Post Office Fixed Deposit interest rates are decided by the Government of India (every quarter) under Small Saving Schemes. In case you are a new user, click the ‘New User Activation’ option. The Post Office Time Deposit (TD) Account, also known as the Post Office Fixed Deposit (FD) account, can be opened with a minimum of Rs.1,000 in multiples of Rs.100, with no maximum limit. Post Office Fixed Deposit Rates & Post Office scheme. Most of the larger size banks in the country have dropped interest rates sharply. One can check the interest they can earn on their post office FD by using an online post office FD calculator. This Page is BLOCKED as it is using Iframes. 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Account can be transferred from one post office to another anywhere in the country, Any number of accounts can be opened in any post office anywhere in the country, A single account can be converted into a joint account and vice versa, Nomination facility is available at the time of opening the account and afterwards too, A minor’s account has to be converted after attaining majority, The tenure can be extended by making an application, Interest is credited into the holder’s savings account, Maximum of three adults (in the case of a joint account), A guardian on behalf of an individual who is a minor or a person of unsound mind, To know exactly how much you will earn with interest on a Post Office Fixed Deposit account even before you open it, use an, All you have to do is enter the amount you wish to invest, the current rate of interest for the tenure you wish to invest in, and the type of interest compounding frequency, The exact amount you will earn with interest will be instantly displayed on the page. The scheme is offered by the Indian postal services, an individual can earn a guaranteed return on the money deposited to a fixed period of time. ... # Post Office Fixed Deposits (FDs) Minimum of Rs.1,000 and in multiples of Rs.100. There is a default fee of Rs 0.05 for every Rs 5 of deposit. Check INDIA POST FD rate of interest and calculate FD final amount via INDIA POST FD Calculator on The Economic Times. Please read the scheme information and other related documents carefully before investing. Range of interest rates: 5.50% p.a. Highest Post Office TD interest rate: 6.70% p.a. INDIA POST FD calculator online - Calculate INDIA POST FD Interest rate using INDIA POST Fixed Deposit calculator 2021. However, the deposits made between these limits should be in multiples of Rs. 1000. However, one can nominate even after opening the account. However, deposits can be withdrawn prematurely in case of any emergency. There is no limit on the number of accounts that can be opened. There is no maximum limit. to 6.70% p.a. The exact maturity value of an FD can be calculated by providing the basic details pertaining to your FD such as amount invested, interest rate, tenure and type of interest compounding. The New interest rate on 5 years Post office FD is 6.7%. Post Office fixed deposit interest rate, in comparison to some banks, is better and gives investors better opportunities to earn. Under online mode, the account opening facility is available online via Intra Operable Netbanking/Mobile Banking. The post office deposit can be opened with a minimum of Rs. 40,000, investors need to fill Form 15G and 15H (up to Rs. You can choose the investment plan of 1-year, 2-year, 3-year or 5-year. Liquidity: Like banks, post offices also have a deposit lock-in period. All rights reserved, Built with ♥ in India, Stock Market 200 only. Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Variable: A variable rate of interest can go up or down throughout the lifetime of a savings account. 10,000 invested every month will fetch you Rs. The return from POFD is guaranteed and backed by the government of India. Yes, you can open a post office fixed deposit account online through the mobile banking or intra-operable net banking facility. Currently, the highest interest rate offered by post office fixed deposit is 7.70% for 5 years’ tenure. However, the interest rate will be applicable as the day of maturity. The post office also accepts time deposits. Duration Rate Deposit Amount Rules Additional Interest for Seniors; 5 years: 8.60%: Must be between Rs. 2) Interest rates on these Post Office FDs would vary based on the tenure. Post office RD is basically a monthly investment for a fixed period of 5 years with an interest rate of 5.8% per annum (compounded quarterly). Recurring Deposit Interest Rate For the July-September period, interest at the rate of 5.8 per cent is paid on recurring deposits at the post office. Special Forms to Fill To avail tax waivers on total interest income of up to Rs. The fixed deposit interest rate currently varies from 6.9% to 7.7%. However, there is no maximum limit. Latest Post Office interest rates on FD for 1 to 4 years is 5.5%. This rule is applicable from 1 April 2007. 1000. 1st Floor, Proms Complex, SBI Colony, 1A Koramangala, 560034. You would have to apply with your KYC documents, passbook, and application form number 1224SB 10(B)/NC-32. Interest in post office FD is paid annually whereas these are compounded quarterly under this scheme. for a tenure of 5 years. Interest rate for a period of 3 years: 5.50% p.a. On April 1 2020, the interest on Post Office deposits was revised. Please re-enter your phone number. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Post Office Time Deposit Account. The fixed deposit rates in post office are decided periodically. The duration of these FD is 1-year, 2-years, 3-years and 5-years. To open an account in Small Savings Schemes viz Savings Account (SB), Recurring Deposit (RD), Time Deposit (TD), Monthly Income Scheme (MIS), Senior Citizen Savings Scheme (SCSS)submit Account Opening Form (AOF) duly filled in with KYC documents and deposit slip(SB 103) in desired Post Office. A time deposit account with India Post can be opened by: Know more about Post Office RD Interest Rates. This scheme of post office is utilized more as compared to bank deposits in rural areas. Address Proof that includes Electricity Bill, Water Bill, Ration Card, Aadhar Card, etc. No, this facility is not available in post offices to date. The post office fixed deposit is also known as a time deposit. Invest in top Bank fixed deposits now! The frequency of people opting for post office fixed deposits is more in rural areas as compared to bank deposit schemes. On completion of the fixed tenure of five years, RD account with Rs. These rates are in turn determined as per the performance of government securities/bills. Past performance is not indicative of future returns. How to open an account in post office and its requirements? NRI depositors cannot open a fixed deposit account in Indian Post office, Nomination can be done at the time of opening the account. To open a post office account online, one must have the following: Step 1: Visit the official website of Indian post and log in to post office e-banking using registered email id and password. The account can be opened with both cash and cheque. Investors can also re-invest in the same scheme after the maturity period if they wish to. It is convenient and alternative for the fixed deposits provided by the bank.. Privacy Policy. Customers can either opt for online or offline mode to open a post office account in India. Fixed Deposit Rates in Post Office. Timings, Benefits of Opening a Post Office Fixed Deposit Account, The post office fixed deposits’ tenure range from 1 year to 5 years, Depositors can open multiple FD accounts in any of the post offices, Minors of 10 years of age or more can also open and manage these accounts as well, Minors, however, will have to apply to convert the account in their name once they hit 18 years, The minimum deposit amount needed to open a post office FD is Rs. Also, while filing income Tax Return (ITR), one can add their FD investments in the post office to claim deduction under section 80C of the Income Tax Act, 1961. AER: AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Key features of the Post office FD are given below: 1) Post Office Fixed deposits are available for 1 year, 2 years, 3 years and 5 year tenure. Post Office Fixed Deposit Interest Rate The tenure of POFD can range between 1 to 5 years with the Post Office FD interest rates ranging from 6.6% to 7.4% per annum. The interest rates offered on these schemes are reviewed and fixed quarterly by the government. If you open a fixed deposit with the post office for a tenure of 5 years, you will be eligible to claim tax benefits under Section 80C of the Income Tax Act, 1961. To invest small fixed amounts of money at regular intervals, one can open a 5-year RD account with the post office. 4) Investments made under the 5-year fixed deposit … Post Office FD Interest Rate. Premature withdrawal of a Post Office FD or Term Deposit can be made between 6 months to 1 year of the date of opening the account. Highlights of Post Office FD Interest Rates. Definitions. Active DOP (Department of Post) ATM or debit card, Visit any nearby post office branch of India Post with all the required documents, Enquire with an official about opening the FD in a post office, Get details about the current post office FD rates, After getting a post office FD account, make sure to take the receipt for future references. The post office fixed deposit (POFD), also known as ‘post office time deposit’ is a convenient alternative to the fixed deposits provided by banks. The order is below: The latest Post Office FD interest rates vary from 6.9% for 1-year deposit to 7.7% for 5-year deposit. The rate increases with the number of years one chooses to apply. A silent account is one in which the withdrawals have not been made for more than 3 years. Through this fixed deposit scheme that is offered by the Indian Postal Services, an individual can earn a guaranteed return on the money deposited for a fixed … The India Post (Department of Posts), is the major postal system in India and is widely distributed in the world. Post Office Time Deposit, also known as Post Office Fixed Deposit, is a fixed deposit scheme similar to bank FD. The post gives the details about the same. Let’s look at both the modes separately”. What is a Post Office Fixed Deposit? The Post Office FD interest rates are one of the best rates for fixed deposits offered in India. The one-year, two-year, and three-year term deposit have no upper limit when it comes to investment, while the five-year fixed deposit allows a maximum amount of Rs.1.5 lakh per year. Interest rate for a tenure of 2 years: 5.50% p.a. What is the minimum deposit required to open a post office fixed deposit account? Assured Returns: Post office deposits are backed by the government of India and are thus completely safe to invest and ensures guaranteed returns on the investment. Post Offices like banks offer FD (Fixed Deposits) and offer very competitive interest rates. Photo ID Proof that includes Aadhaar Card, Voter ID Card, etc. For Post Office fixed deposit schemes with tenures of 2 years and above, a 1% reduction in the proposed interest is made before disbursing the funds to individuals. You can see the below table to find the post office FD interest rates 2021 for different tenures. 15 lakhs-Post Office Senior Citizens Saving Scheme Fixed Deposits Details Currently, the rate of interest ranges from 6.9% to 7.3%. Post Office Fixed Deposit Interest Rates. Certain important points related to post office FD premature withdrawal have been enlisted below: Premature withdrawal is allowed only after 6 months from the date of opening the account. The rate varies somewhere from about 7.1% to 9% something, depending upon the period you keep your deposit for. Fixed: A fixed rate of interest does not fluctuate and remains the same through out the lifetime of a savings account. You can avail a tax deduction under Section 80C of the Income Tax Act, 1961, for deposits with a tenure of 5 years. Step 3: Find the Service request and open the same. The Government of India’s Department of Posts, Ministry of Communications, offers fixed deposit accounts that offer attractive interest rates with tenures that range from 1 year up to 5 years. It needs to be mentioned here that individuals who invest in the five-year term deposit qualify for income tax benefit under Section 80C of the IT Act. It was the year 1854 when Lord Dalhousie (Governor-General of India then) formed Indian Post. ⓒ 2016-2020 Groww. The difference in interest rates widens with increase n in tenor. What is the minimum deposit required to open a post office fixed deposit account? You will receive a call shortly from our customer support. It will remain same as the rates of the period October to December 2020 for PPF, KVP, SSY, SCSS, NSC, MIS, post office savings deposit, Time deposit, Recurring deposits. Tax Implications: Depositors can claim up the tax to a maximum of Rs. This rate is applicable from 1st April 2020 to … My friend is working at a post office and yesterday I had gone with him to meet his client…this is how I came to know about it. Copyright © 2021   BankBazaar.com. The post office offers several types of deposit schemes, also known as small savings schemes. Post Office FD Rates 20 21 One year TD yields an interest rate of 5.5% per annum. If the withdrawal is made between the period of 6 to 12 months from the date of account opening, a penalty will be charged in the form of simple interest that is for a specified period of time. What is the highest Post Office fixed deposit interest rate? Leaving so soon? Investors can invest a certain amount for a fixed period for a fixed rate of interest. Mutual fund investments are subject to market risks. 0.01 lakhs - Rs. The highest Post Office FD interest rate is 6.70% for deposits maturing in 5 years. 200, There is no cap on the maximum deposit amount, Joint account can also be opened by individuals, given that the account holders are two adults, Depositors can convert these accounts from single to joint and vice versa as per the need, Deposits made for a tenure of 5 years are eligible for tax benefits under, Post Office fixed deposits can be easily transferred from one post office to another. Howdy Readers. For the Senior Citizen Savings Scheme, the interest rate was cut from 8.6 per cent per annum to 7.4 per cent per annum. Currently, the highest interest rate offered by post office fixed deposit is 7.70% for 5 years’ tenure. One of the major advantages of opening an FD account in the post office is that TDS (Tax Deducted at Source) is not deducted on the interest earned. The minimum amount required to open a Post office FD account is Rs. Uh-oh! A fixed deposit can be opened for a minimum amount of Rs.200. for a tenure of 5 years 1) Post Office Fixed Deposits: Post office offers term deposits (fixed deposits) for 1 year, 2 years, 3 years and 5 year period. FD tenure currently available is 1 yr, 2 Yrs, 3 Yrs and 5 Yrs. Follow the next appearing steps to complete the process. The minimum amount required to open a Post office FD account is Rs. You should have the following documents to open a post office fixed deposit account: Can we take a loan against Post Office FD? The time period for these fixed deposits are one year, two years, three years and five years. The interest rates under this scheme currently varies from 6.9% to 7.7%. India Post, which operates a network of more than 1.5 lakh post offices provide customers with four different lock-in periods for fixed deposits. Interest rates are ranging between 5.5% to 6.7%, … 200. What are the documents needed to open a fixed deposit account in a post office? Following points must be taken into consideration while opening a fixed deposit account offline: What is the highest interest rate Post office fixed deposit offers? Risk-free: Post office fixed deposit is totally risk-free investment as no matter what the market condition is, you will get complete returns on maturity. Withdrawal of funds before the maturity is referred to as premature withdrawal of post office fixed deposit. Fixed Deposit Rates in Post Office Senior Citizens Saving Scheme. This is because post office FD is designed to benefit the low-income group and they are exempted from any tax liability by the government. The interest is payable annually with the minimum deposit being Rs.1,000 and no maximum limit. By investing in this deposit scheme one can get taxation benefits under section 80C. This number appears incorrect / invalid. These interest rates are effective from 1 April 2020. open a fixed deposit with the post office, Highest Post Office TD interest rate: 6.70% p.a. Like bank FDs, investors earn a guaranteed return through the tenure of the post office term deposit. Enter your number below. You can transfer your account from one post office branch to another by submitting a transfer application either in the post office you are transferring from or transferring to. It offers an interest rate of 5.5 percent for one-year time deposit to three years. In India, there is a number of fixed deposit schemes offered by various public and private sector banks but still, a majority of people prefer to go with Post office fixed deposits over them owing to these reasons: Higher rate of interest: Post office FD interest rates are comparatively higher than the what market has to offer. 3) The minimum amount required to open Post Office FD account is ₹ 200 and in multiples thereof. The account gets renewed automatically upon maturity for the same period as it was opened previously. If a depositor opts for a cheque deposit, the date of payment of the cheque in the account of the government should be the date of opening the FD account. 5-year lock-in: Comes with a mandatory lock-in period of 5 years. 200 whereas there is no maximum limit under this scheme. 1,50,000 under Section 80C of the IT Act, 1961 if invested in 5-year term deposits. 50,000) for general and senior citizens respectively. Post office interest rates comparison with banks. Indian Postal Department is also known as India Post which provides its customers with Fixed Deposit options to park their surplus money and earn interest on it. Home » p » Fixed Deposit » Post Office FD Interest Rates. Indian Post has been providing access to post office net banking services to its customers since 2018, under which funds can be transferred easily within varied post offices. The trend of Post Office Interest Rates from Oct 2019 to Oct 2020. The Post Office Time Deposit (TD) Account, also known as the Post Office Fixed Deposit (FD) account, can be opened with a minimum of Rs.1,000 in multiples of Rs.100, with no maximum limit. Interest rate for a tenure of 1 year: 5.50% p.a. The interest rate offered on the fixed deposits is in the tune of 7 -7.80% per annum. *The Post Office Fixed Deposit interest rates are subject to change as per the requirements. To open an FD account with the post office, all you need are your KYC documents, deposit slip (SB 103), and a duly-filled in Account Opening Form (AOF). The interest on Post Office deposits was revised on 1 July 2019. For instance, while the one-year deposits rate for SBI is 6.5%, post office deposits rate for the same tenor is 6.9%. Request received - loud & clear!Returning you to where you were... (You can save searches, track your apps & save plenty of time!). For Post office fixed deposit and small savings schemes Interest rates from 1st Jan 2021, there is no change for the period of 01.01.2021 to 31.03.2021. However, if withdrawal is not allowed before 6 months from the date of opening the account. A fixed deposit is an investment scheme that allows one to deposit in fixed deposits in order to earn interest on the investment. Get best interest on your hard earned money with zero risk. 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