Post Office Fixed Deposit Rates For Senior Citizens
About Post Office FD Scheme
The Government of India’s Department of Posts, Ministry of Communications, provides fixed deposit accounts with attractive interest rates and terms ranging from one year to five years. The Indian Postal Services offers a Post Office FD Scheme, also known as a Post Office Term Deposit, as an investment option. Because it is a government-backed scheme, it is regarded as one of the most trusted investment options. Furthermore, investments in Indian post office FDs yield benefits such as a lower minimum deposit limit, higher returns, a flexible tenure, and a loan against FD facility, among other things.
- Post Office FD Scheme
- Features of Post Office FD
- Current Post Office FD Interest Rates for Senior Citizens
- Post Office FD Interest Rates
- Eligibility of Post Office FD
- How to Calculate Post Office FD Rates
- Documents required for opening FD in Post office
- How to Open a Post Office FD Account?
Features of Post Office FD for Senior Citizens
- Post office FD accounts can be opened for one year, two years, three years, or five years.
- A single post office FD account may be converted into a joint account with a maximum of three adults. A joint account, on the other hand, can be converted to a single account.
- Premature withdrawals are permitted six months after the account is opened.
- The account can be opened in both offline and online modes.
- 5-year tax-saving post office deposits are deductible under Section 80C of the Income Tax Act of 1961, up to a maximum of 1.5 lakhs per fiscal year.
- Interest is paid annually and gets credited into the depositor’s savings account.
- Accounts can be opened with either a check or cash.
Current Post Office FD Interest Rates for Senior Citizens
| Tenure | General Public Interest Rate (% p.a.) | Senior Citizens Interest Rate (% p.a.) |
| 1 year | 5.50% | 5.50% |
| 2 years | 5.50% | 5.50% |
| 3 years | 5.50% | 5.50% |
| 5 years | 6.70% | 6.70% |
Post Office FD Interest Rates Highlights:
- The highest Post Office FD interest rate is 6.70 per cent per annum for a 5-year term.
- Interest rates range from 5.50 per cent to 6.70 per cent per annum.
- For a one-year term, the interest rate is 5.50 per cent per annum.
- For a two-year term, the interest rate is 5.50 per cent per annum.
- The interest rate for a three-year period: 5.50 per cent per annum
Eligibility of Post Office FD
Individuals in the following categories are eligible to open a post office FD account:
- Individuals.
- Minors over the age of ten.
- A legal guardian acting on behalf of a person of unsound mind or a minor.
- In the case of a joint account, a maximum of three adults is allowed.
How to Calculate Post Office FD Rates
Use an online FD calculator, which is free and simple to use, to determine how much interest you will earn on a Post Office Fixed Deposit account before you open it. All you have to do is enter the amount you want to invest, the current rate of interest for the tenure you want to invest in, and the frequency of interest compounding. The exact amount you will earn with interest will be displayed on the page immediately.
Documents required for opening FD in Post office
To open a post office FD account, you will need the following documents:
- 2 passport-sized photos
- Photo ID proof, such as a voter ID card or an Aadhaar card, is required.
- PAN Card Address Proof, for example, ration card, water bill, electricity bill, and so on.
How to Open a Post Office FD Account?
There are two methods for opening a post office fixed deposit account: online and offline.
Offline Mode:
- Visit your nearest India Post post office branch with the necessary KYC documents.
- Inquire about the most recent post office fixed-term deposit interest rates.
- You will be guided through the account opening process by an authorised representative.
- Open a term deposit and remember to keep the receipt for future reference.
Online Mode:
Online account opening is possible through Mobile Banking or Intra Operable Net Banking. The following are the prerequisites for opening an online FD:
- A valid mobile phone number and email address are required.
- PAN Card is a personal identification number.
- A savings account that is currently active.
- KYC documentation has been verified.
- An active debit card or a DOP (Department of Post) ATM.
Log in to Post Office e-banking at: https://ebanking.indiapost.gov.in/ with your login ID and password.
- Select General Services.
- Now, select ‘Service Request.’
- To make the time deposit opening request, select the ‘New Request’ option.
- To finish the process, complete the remaining steps as directed.
FAQs:
What is the required minimum balance for a post office FD?
A post office FD account requires a minimum balance of Rs.1,000.
What documents are needed to create a savings account at the post office?
All you need to open an FD account with the post office is your KYC paperwork, a deposit slip (SB 103), and a properly completed Account Opening Form (AOF).
Is it better to invest in a Post Office FD or a Bank FD?
Post Office FDs are also known as Small Savings Schemes because they provide better yields and rates than bank deposits.
Which scheme offers the best return on investment?
Post office FD interest rates are higher than bank FD interest rates.
