Latest Post Office Fixed Deposit Rates in India 2025
Post Office Savings Schemes, offered by India Post and backed by the Government of India, has a fixed deposit scheme called Post Office Time Deposit Account (TD).
Interest rates on Post Office fixed deposits range from 6.90% to 7.50%. There is no limit on the maximum deposit amount but an annual minimum amount of Rs. 1,000 is required to be eligible for interest.
What is a Post Office FD (Fixed Deposit)?
A Post Office Fixed Deposit (FD) is also referred to as a National Savings Time Deposit (TD) Account. It is a government-backed saving scheme. India Post provides it through its extensive network of post offices across the country. A sum of money can be deposited for a selected tenure, at a fixed and guaranteed interest rate throughout the entire tenure.
Features of Post Office FD Scheme
The main features of the Post Office FD scheme are mentioned in the table below:
Interest rates | 6.90% to 7.50% |
Tenure | 1 year, 2 years, 3 years, or 5 years |
Minimum deposit amount | Rs.1,000 |
Premature withdrawal | Allowed after six months |
Nomination facility | Available |
TDS Deduction | You can avail tax deductions under Section 80C of the Income Tax Act, 1961. |
Post Office Fixed Deposit Interest Rates
Deposit Tenure | Post Office FD rates (p.a.) |
1 year | 6.90% |
2 years | 7.00% |
3 years | 7.10% |
5 years | 7.50% |
Rates for Tax-Saving Post Office 5-year Fixed Deposit
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.
Tenure | Regular Post Office FD rates (p.a) |
60 months | 7.50% |
Post Office Time Deposit Account
There is no maximum restriction, and you can open a Post Office Time Deposit (TD) Account, also known as a Post Office Fixed Deposit (FD) account, with a minimum of Rs. 1,000 and multiples of Rs. 100.
Features of Post Office Fixed deposit (FD)
The Post Office Fixed Deposit (FD) scheme or Post Office Time Deposit is a true and government-backed, very safe investment option offered by India Post. It provides secure returns with flexible tenures and tax saving advantages for investors.
Here are the Features of the scheme:
Feature | Description |
Tax Benefits (Section 80C) | • Investments in afive-year Post Office FDqualify for deductions underSection 80Cof the Income Tax Act,1961.• Offers a secure and tax-efficient savingsoption.• Tax benefits apply only if the deposit is held for the full five-year term without premature closure. |
Annual Interest Payment | • Interest iscalculated annuallyand credited directly to the depositor’s linked savingsaccount.•Ensuresautomatic, hassle-free accumulationofreturns.• Enables steady yearly income while keeping the investment safe. |
Premature Closure | • Investors mayclose the FD before maturity, but only aftersix monthsfrom the date ofdeposit.•Providesliquidity in emergencieswhilemaintainingbasicflexibility.• Useful for those who might need funds unexpectedly. |
Interest Rate on Premature Closure | • If the FD is closed early, theinterest rate is 2% lowerthan the rate applicable for the completedtenure.•For deposits heldunder one year, thePost Office Savings Account rateappliesinstead.• Ensures fairness while discouraging frequent early withdrawals. |
Tenure Extension | • Investors canapply to extendthe FD tenure uponmaturity.•Allows the investment to continue seamlesslywithoutinterruption.• Ideal for those wanting to compound returns over a longer period. |
Minimum and Maximum Investment Limits | • Minimum deposit: Rs.1,000.•Additionaldeposits: In multiples of Rs.100.• Nomaximumlimit, making it suitable for both small and largeinvestors.• Offers flexibility across income groups. |
Unlimited Accounts | • Investors can open multiple FD accounts in any post office across India.• There is no cap on the number of accountsallowed.• Enables diversification of deposits across various tenures. |
Account Conversion and Flexibility | • The scheme allowsconversion between single and joint accountsat anytime.•Offersgreater control and adaptabilityto suit personal or family financialneeds.• Can be done with a simple application process. |
Account Transferability | • FD accounts can betransferred easilyfrom one post office to anotheranywhere inIndia.•Highly convenient for individuals whorelocatedue to work or personalreasons.• Ensures continued access to savings without administrative hassle. |
Nomination Facility | • Account holders cannominate a beneficiaryto receive the deposit in case of theirdeath.•The nomination can be madeat account openingorupdatedlater.• Simplifies inheritance and ensures financial security for loved ones. |
Minor Accounts | • A Post Office FD can beopened in the name of aminor.•When the minorattainsmajority, the account must betransferred to their namevia a formalprocess.• Encourages early financial planning and saving habits. |
Deposit via Cash or Cheque | • Accounts can be opened usingeither cash orcheque.•Providesflexibility and conveniencein choosing the paymentmethod.• Suitable for investors across both urban and rural areas. |
Types of Post Office FD Schemes
The various types of Post office FD schemes are mentioned below
- Post Office Savings Account: A Post Office Savings Account is one of the most well-known and conveniently accessible savings accounts in India.This savings account can be opened with a minimum balance of Rs.500. A single account may only be opened by the individual. The amount that can be deposited into a post office savings account is limitless.
- National Savings Monthly Income Account: The National Savings Monthly Income Account allows depositors to manage their normal expenses by providing monthly interest income.
Post Office FD Rates and Banks FD Rates – A Comparison
A comparison between Post Office FD rates and other banks FD rates
Name of the Banks | FD Rates | Post Office FD Rates |
State Bank of India | Regular FD rates – 3.05% to 6.45%Senior citizen FD rates – 3.55% to 7.05% | 6.90% - 7.50% |
HDFC Bank | Regular FD rates – 2.75% to 6.60%Senior citizen FD rates – 3.25% to 7.10% | 6.90% - 7.50% |
Axis Bank | Regular FD rates – 3.00% to 6.60%Senior citizen FD rates – 3.50% to 7.35 % | 6.90% - 7.50% |
Punjab National Bank | Regular FD rates – 3.00% to 6.60%Senior citizen FD rates – 3.50% to 7.10% | 6.90% - 7.50% |
Bank of India | Regular FD rates – 3.00% - 6.60%Senior citizen FD rates – 3.00% - 7.10% | 6.90% - 7.50% |
Canara Bank | Regular FD rates – 3.25% to 6.50%Senior citizen FD rates – 3.25% to 7.00% | 6.90% - 7.50% |
IDBI Bank | Regular FD rates – 3.00% to 6.55%Senior citizen FD rates – 3.50% to 7.05% | 6.90% - 7.50% |
Who Can Open a Post Office Fixed Deposit Account?
Those in the Post Office TD scheme are inclusive and open to a variety of account holders. The following people are permitted to open a Time Deposit Account:
- Any resident Indian over the age of 18 can open the TD account solely in their own name.
- Joint account holders: Up to three adults can open a TD account jointly. The account can be established in two different ways: Joint A Type - only the first account holder can operate the account and Joint B Type - all account holders must jointly operate the account.
- A guardian on behalf of a minor: A parent or legal guardian may open an account in the name of a minor child.
- A guardian on behalf of a person of unsound mind: Protects dependents who may reside with mental disabilities.
- A minor aged 10 or greater: A child who is a minimum of 10 years of age can open an account in their own name and operate it independently.
Documents Required for Post Office FD Scheme
The various documents required for Post Office FD scheme are mentioned below -
- Post Office FD application form
- Proof of address: telephone bill, electricity bill, passport, etc.
- Proof of identity: Aadhaar card, PAN card, driving license, Voter ID card, etc.
Available Deposit Tenures
The Post Office TD accounts offer tailored periods of investment to meet a variety of savings goals, from short-term financial planning, to longer-term goals. This period of investing provides a range of expected timelines that savers can choose in relation to their needs.
For example, someone may have needs such as short-term financial emergencies, educational needs, or retirement savings. Shorter tenures could and might be more appropriate for holiday planning, or gadget purchasing, whilst the 5-year term offers a tax advantage and is most appropriate for long-term planning. Investors can choose between:
- 1 year
- 2 years
- 3 years
- 5 years
Maturity and Repayment of TD account
1. The actual principal invested becomes eligible for payment upon maturity, or the end of a player's select deposition commitment (1, 2, 3 or 5 years) from the time the account was opened.
2. Upon maturity, the entire payment (as well as interest accrued), will be paid to the account holder. Investments which are not renewed or extended will receive no interest after the maturity date.
3. So timely renewal is important if you want the account to continue earning returns from the period of investment. This is a great assurance as it means the scheme acts as a genuine fixed deposit once provided ensuring limits to on returns, securing the capacity to repay at the end of the selected terms.
Extension of TD Account After Maturity
The Post Office TD scheme allows account holders to extend their account upon maturity for the same tenure to encourage a long-term savings habit.
Extension rules:
- 1 Year TD: Must be extended within 6 months from the maturity date.
- 2 Year TD: Must be extended within 12 months from maturity.
- 3 Year or 5 Year TD: May be extended within 18 months from maturity date.
How to Extend a Post Office Time Deposit (TD) Account
Extending the Time Deposit account allows the account holder to continue earning interest for next tenure (the same duration as the original time period). The interest rate will be the rate applicable on the date of maturity.
Follow the instructions given below for Extension:
Step 1: Ensure the account has matured. The investor can apply for an extension only after the TD reaches the end of its tenure (1, 2, 3, or 5 years).
Step 2: Visit the post office where the TD account was opened.
Step 3: Get the ‘Extension Form for Time Deposit Accounts’ from the post office or download it from the India Post website.
Step 4: Fill in details like account holder’s name, account number, type of deposit, and desired tenure extension.
Step 5: Attach the original TD passbook for verification and updates.
Step 6: Submit the form and passbook at the counter. The staff will process your request and update the maturity date.
Step 7: Collect the updated passbook showing the new maturity period.
Optional: While opening a new TD account, depositors can give a written request for automatic renewal at maturity.
Premature closure of TD Account
The option of premature closure is available for the Time Deposit to allow flexibility when and if the time arises. Although the Time Deposit encourages disciplined saving habits, some flexibility is required.
Key Rules for Premature Closure
- No withdrawal is allowed up to six months from the date the account is opened.
- If closure occurs after six months but before the end of one year, interest will be paid equal to the Post Office Savings Account interest rate.
- If closure occurs upon completion of more than one year on a 2 Year, 3 Year or 5 Year TD, interest is paid at: 2% below the TD interest rate, for the completed tenure.
- For partial years, interest is paid in accordance with the Post Office Savings interest rate.
Procedure for Termination of Post Office Time Deposit Account Before Time
Termination of Post Office Time Deposit Account Before Time simply indicates closure of the TD account before maturity. The premature closure of a TD account is allowed in accordance with certain guidelines and the account holder will earn less interest.
The procedure for termination is as follows:
Step 1: Check eligibility. Premature closure is allowed only after 6 months from the date of deposit.
Step 2: Visit the same post office where the TD account was opened.
Step 3: Get the ‘Application for Premature Closure of TD Account’ from the post office or India Post website.
Step 4: Fill in details like name, account number, and (optional) reason for closure, then sign the form.
Step 5: Attach the original TD passbook for processing and payout.
Step 6: Submit the form and passbook at the counter. The staff will verify details and begin closure.
Step 7: Receive your final payment (principal and interest, if any) via cheque, cash, or transfer to your savings account.
Step 8: Collect the acknowledgement or closure receipt as proof of the transaction.
Note: If the account holder passes away, the deposit amount is distributed to the designated nominees or legal heirs. If there are many legal heirs, the sum is distributed in the proportions determined by the account holder. If no proportions are indicated, the sum will be divided equally among all legal heirs. Account Extension of Post Office FD Scheme
Post Office Fixed Deposit Calculator
You can use a free and simple online FD calculator to determine how much interest you will receive on a Post Office Fixed Deposit account before opening one. Simply enter the amount you want to invest, the current rate of interest for the tenure you want to invest in, and the type of interest compounding frequency. The exact amount you will earn with interest will be displayed on the page immediately.
FAQs on Post Office FD Rates
- What is the minimum balance required for a post office FD?
The minimum balance required for a post office FD account is Rs.1,000
- What are the documents required to open an FD account with the post office?
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).
- What is a silent account?
A silent account is one in which the withdrawals have not been made for more than 3 years.
- Is the Post Office FD secure?
Yes, investing in a Post Office FD is safe because it is a Post Office product and is available under the National Savings Scheme. As the Indian government guarantees it, investing in it is the safest option.
- How do I transfer my account from one post office branch to another?
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. You would have to apply with your KYC documents, passbook, and application form number 1224SB 10(B)/NC-32.
- Can I open a post office FD account online?
Yes, you can open a post office fixed deposit account online through the mobile banking or intra-operable net banking facility.
- Which is preferable - a Post Office FD or a Bank FD?
Post Office FDs, also known as Small Savings Schemes, provide significantly higher yields and rates than bank accounts.
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