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Post Office Fixed Deposit Account – Features, Types, Interest rate, Eligibility and Benefits

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Manish Kothari
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Manish Kothari
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Post Office Fixed Deposit Account

Post Office Fixed Deposit Account vis also popular as Post Office Time Deposit Scheme, which is a government-backed scheme to provide an opportunity to the investors to park their money in any post office pan India. The investment in this scheme can be initiated with a small amount of Rs 1000.

Salient features of Post Office Fixed Deposit Account

Investment tenure1 year, 2 years, 3 years, 5 years
Minimum Investment AmountRs 1000  and later in multiple of 100
Maximum Investment AmountNo limit
Interest paymentAnnually
Interest rates5.5% - 6.7%
Premature closure/withdrawalAfter 6 months of investment*

*  If FD account is closed after 6 months but before 1 year, Interest rates of PO Savings Account will be applicable

Post Office Fixed Deposit Interest Rates

Investment tenureInterest rates
1 year5.5%
2 year5.5%
3 year5.5%
5 year6.7%

Eligibility criteria

Following are eligible for opening a Post Office Fixed Deposit Account:

  • An individual
  • Joint Account (up to 3 adults) (Joint A or Joint B)
  • a guardian on behalf of a minor
  • a guardian on behalf of an unsound mind person
  • a minor above 10 years can also open an account in his name

Account type and the Deposit facility

  • An account can be opened under this scheme for 1 year, 2 year, 3 year, or 5 year, depending on the investor’s choice.
  • An account can be started with a minimum investment of Rs 1000 and in multiples of Rs 100 thereafter. However, there is no upper limit of the investment.
  • By submitting an application, the annual interest may also be credited to the savings account of the account holder.
  • This scheme also offers tax deductions under Section 80C of the Income Tax Act, if the deposit is made for 5 years.

Facility for extension of the FD account

Upon maturity, an account holder can further extend the tenure of his account. Following are the criteria to be met for the extension:

  • For 1 year FD account: within 6 months of maturity
  • For 2 years FD account: within 12 months of maturity
  • For 3 and 5 year FD account: within 18 months of maturity

FD account can be extended further for a period by submitting a duly filled application form at the concerned Post office along with providing the passbook.

Also Read : SBI FD Interest Rates

Benefits of Post Office Fixed Deposit Account

  • This scheme offers a negligible level of risk as it is a government-backed scheme.
  • An FD account can be opened under this scheme via online or offline mode as per the convenience of the investor.
  • The account is easily transferable from one Post office to another if needed.
  • This scheme also enables minors to open an account under valid guardianship.
  • The number of FD accounts under this scheme is not limited to one. More than one account can also be opened in any post office.
  • Nominees can also be added if needed, after opening the FD account.
  • TDS is not deducted from the interest earned in this scheme.

Documents required to open Post Office FD account

To open a Post Office FD account, one may need the following documents:

  • A valid Photo ID Proof: aadhar card, Voter ID card, etc.
  • A valid Address proof: Aadhar card, Electricity bill, Ration card, Water bill, etc.
  • A PAN card
  • Passport size photographs
  • Verified KYC documentation (in case of online application)

Steps to Open Post Office FD account

Post Office FD accounts can be opened via online as well as offline mode.

To open an FD account online, you must follow the following steps:

Step 1: First Log in to Post Office e-banking

Step 2: Click on the option ‘General Services’.

Step 3: Click on the option ‘Service Request’.

Step 4: Apply for the (time-deposit) TD opening request using the ‘New Request’ option.

To open an FD account offline, you must follow the given steps:

Step 1: Collect all the necessary documents as mentioned above and visit a nearby post office.

Step 2: You must first enquire about the current Post Office FD interest rates before opening the FD account.

Step 3: Fill and submit the application form along with the required documents at the PO branch.

Step 4: Make the minimum investment and open the FD account.

Also Read : PNB FD Interest Rates

Frequently Asked Questions (FAQs)

Q. How can I open a Post office FD account ?

A. Post office FD accounts can be opened online or offline as per the convenience of the investor. So, you may either visit the nearby post office or log in to their website online.

Q. Does the Post office FD account has a lock-in period ?

A. Yes, the Post office FD account has a lock-in period of a minimum of 1 year which may range up to 5 years as per the choice of investment tenure.

Q. Can investors withdraw their deposits before maturity ?

A. Yes, the Post office FD scheme enables investors to withdraw their investment before maturity. You may withdraw your investment after 6 months of investment. If the FD account is closed after 6 months but before 1 year, Interest rates of the PO Savings Account will be applicable.

Q. What is the minimum balance requirement in the Post office FD account ?

A. The minimum balance which has to be maintained in the post office FD account is Rs 1000.

Q. In which types of savings accounts ATMs card/Net banking cannot be issued?

1. Minor Account

2. Joint A Account

3. BO Account​

Q. What are the required documents to open a post office FD account?

A. To open a Post Office FD account, one may need the following documents:

  1. A valid Photo ID Proof: aadhar card, Voter ID card, etc.
  2. A valid Address proof: Aadhar card, Electricity bill, Ration card, Water bill, etc.
  3. A PAN card
  4. Passport size photographs
  5. Verified KYC documentation (in case of online application)

Q. Is Post Office FD a safe option to invest in?

A. Yes, post office FD offers a negligible level of risk as it is a government-backed investment option. Thus, safe to invest in. 

Also Read : 

Yes Bank FD Interest Rates

Canara Bank Interest Rates

HDFC Bank FD Interest Rates

ICICI Bank FD Interest Rates

Mahindra Finance FD Rates

Get Highest FD Returns, Earn up to 8.90% Interest*