Post Office FD Interest Rates | Post Office FD Interest Rates Today | Latest Fixed Deposit Rate 2021

Post Office FD Interest Rates

Post Office FD Interest Rates: Indian Postal Department is also called India Post which offers its prospects with Fixed Deposit choices to park their surplus cash and earn curiosity on it. The Post Office FD rates of interest are probably the greatest charges for fastened deposits supplied in India. Interest input up workplace FD is paid yearly whereas these are compounded quarterly below this scheme. The frequency of individuals choosing put up workplace fastened deposits is extra in rural areas as in comparison with financial institution deposit schemes. The minimal deposit to be made is as little as Rs. 200 whereas there isn’t a most restrict below this scheme. However, the deposits made between these limits ought to be in multiples of Rs. 200 solely.




Post Office FD Interest Rates

Tenure FD Interest Rates for General Citizens FD Interest Rates for Senior Citizens
7 days to 1 year 5.50% 5.50%
1 year 1 day to 2 years 5.50% 5.50%
2 years 1 day to 3 years 5.50% 5.50%
3 years 1 day to 5 years 6.70% 6.70%

 

Note: The above said Post Office FD charges efficiently for the interval of 1st April 2020 to thirty-first December 2020.

Read additional to know in regards to the options, eligibility standards, paperwork required to open a Post Office Fixed Deposit, and extra.




Post office Fixed Deposit Rates

  • The put up workplace fastened deposits’ tenure vary from 1 yr to five years
  • Depositors can open a number of FD accounts in any of the put up places of work
  • Minors of 10 years of age or extra also can open and handle these accounts as properly
  • Minors, nonetheless, should apply to transform the account of their title as soon as they hit 18 years
  • The minimal deposit quantity wanted to open a put up workplace FD is Rs. 200
  • There is not any cap on the utmost deposit quantity
  • Joint account will also be opened by people, on condition that the account holders are two adults
  • Depositors can convert these accounts from single to joint and vice versa as per the necessity
  • Deposits made for a tenure of 5 years are eligible for tax advantages below part 80C of the Income Tax Act of India, 1961
  • Post Office fastened deposits might be simply transferred from one put up workplace to a different
  • The account will get renewed mechanically upon maturity for a similar interval because it was opened beforehand. However, the rate of interest shall be relevant because the day of maturity.
  • NRI depositors can’t open a set deposit account in Indian Post workplace
  • Nomination might be achieved on the time of opening the account. However, one can nominate even after opening the account
  • The account might be opened with each money and cheque. If a depositor opts for a cheque deposit, the date of cost of the cheque within the account of the federal government ought to be the date of opening the FD account.




Features of Post Office Fixed Deposit Account

Particulars Details
Tenure 1, 2, 3 and 5 years
Minimum Deposit Amount Rs. 1,000
Interest Rates 5.5% – 6.7%
Interest Payment Annually
Mode of Payment Cash/Cheque
Premature Withdrawal Allowed after 6 months*
Nomination Facility Available

Note: If account is closed between 6 to 12 months from the date of opening, then Post Office Savings A/c charges shall be relevant.

Benefits of Opening a Post Office Fixed Deposit Account

In India, there may be quite a lot of fastened deposit schemes supplied by varied private and non-private sector banks however nonetheless, a majority of individuals favor to go along with Post workplace fastened deposits over them owing to those causes:

Higher charge of curiosityPost workplace FD rates of interest are comparatively larger than the what market has to supply. Currently, the speed of curiosity ranges from 6.9% to 7.3%

Assured Returns: Post workplace deposits are backed by the federal government of India and are thus utterly secure to speculate and ensures assured returns on the funding.

Liquidity: Like banks, put up places of work even have a deposit lock-in interval. However, deposits might be withdrawn prematurely in case of any emergency.

Inflation Protection: Whenever the inflation charge dips beneath the time period deposit rate of interest, the depositor earns extra

Risk-free: Post workplace fastened deposit is completely risk-free funding as it doesn’t matter what the market situation is, you’re going to get full returns on maturity.

Tax Implications: Depositors can declare up the tax to a most of Rs. 1,50,000 below Section 80C of the IT Act, 1961 if invested in 5-year time period deposits.




Benefits of Post Office Fixed Deposit Account

  • Guaranteed by the Government of India, thus traders benefit from the highest stage of safety
  • Since it’s a non-profit-making group, the principle focus is social welfare and that is the USP of POTD (Post Office Time Deposits)
  • An account might be opened offline in addition to on-line by way of Post Office Netbanking
  • Tax (TDS) will not be charged on the curiosity earned
  • Deposit made for five years qualify for tax deductions from gross wage when submitting ITR (u/s 80C for as much as Rs. 1.5 lakh/FY)
  • The deposit might be made individually or collectively (as much as 3 members)
  • Easy switch from one put up workplace to a different
  • Minors can open the time deposit account below legitimate guardianship
  • More than one fastened deposit account might be opened in any put up workplace
  • One can add a nominee even after opening the account

 

Post Office FD Calculator

One can examine the curiosity they’ll earn on their publish workplace FD through the use of an internet publish workplace FD calculator. The precise maturity worth of an FD will be calculated by offering the essential particulars pertaining to your FD reminiscent of quantity invested, rate of interest, tenure and kind of curiosity compounding.

post office fd interest rates

Post Office FD Premature Withdrawal

Withdrawal of funds earlier than the maturity is known as untimely withdrawal of publish workplace fastened deposit. Certain necessary factors associated to publish workplace FD untimely withdrawal have been enlisted under:

Premature withdrawal is allowed solely after 6 months from the date of opening the account

If the withdrawal is made between the interval of 6 to 12 months from the date of account opening, a penalty will likely be charged within the type of easy curiosity that’s for a specified time period.

 

Who Should Invest in Post Office FD?

Post Office fastened/time deposit scheme is well-suited for many who belong to the low-middle earnings group. Housewives also needs to direct their financial savings in the direction of this scheme since TDS (Tax Deducted at Source) isn’t relevant to the investments made in Post Office FD.

 

If you may have youngsters above 10 years, it’s best to encourage them to speculate on this scheme. This would assist inculcate the behavior of saving which might show helpful in future.

Since the scheme is introduced by India Post, which is a wholly-owned enterprise by the Government of India, the protection of your cash is prime.

All being mentioned, it’s best to count on modest returns and retain for an excellent 3-5 years to reap the utmost advantages.




Post Office FD: TDS Implication/Taxation

One main benefit of investing in Post Office fastened/time deposit is that tax (TDS*) isn’t deducted on the curiosity earned. This is as a result of it’s designed to particularly profit the low-income group and tax legal responsibility is taken away from their shoulders by the federal government.

When submitting Income Tax Return (ITR), one can add their investments of fastened deposit in Post Office to assert deduction u/s 80C of the Income Tax Act, 1961. The higher restrict for deductions underneath the mentioned part of the IT Act, 1961 is maxed at Rs. 1.5 lakh, each monetary 12 months.

 

How to Open Post Office FD?

Customers can both go for on-line or offline mode to open a publish workplace account in India. Let’s have a look at each the modes individually

Online Mode

Under on-line mode, the account opening facility is out there on-line by way of Intra Operable Netbanking/Mobile Banking. Indian Post has been offering entry to publish workplace web banking companies to its prospects since 2018, underneath which funds will be transferred simply inside different publish places of work.

To open a publish workplace account on-line, one should have the next:

  • A legitimate lively financial savings account
  • PAN Card
  • Verified KYC documentation
  • Active DOP (Department of Post) ATM or debit card
  • A legitimate cell quantity and e-mail id

 

Steps to Open Post Office FD Online

Step 1: Visit the official web site of Indian publish and log in to publish workplace e-banking utilizing registered e mail id and password. In case you’re a new consumer, click on the ‘New User Activation’ choice.

Step 2: Click on General Services

Step 3: Find the Service request and open the identical.

Step 4: Make the time deposit (TD) opening request utilizing the ‘New Request’ choice

Follow the following showing steps to finish the method.

Offline Mode

Following factors should be considered whereas opening a set deposit account offline:

  • Visit any close by publish workplace department of India Post with all of the required paperwork
  • Enquire with an official about opening the FD in a published workplace
  • Get particulars concerning the present to publish workplace FD charges
  • After getting a publish workplace FD account, be sure that to take the receipt for future references

 

Important Aspects

  • Once the FD matures and the depositor doesn’t withdraw the identical, there will likely be no additional curiosity payable post-tenure
  • Minors, on attaining 18 years of age, should get the account transformed of their identity
  • If the deposit is made by way of cheque, then the date of realization of the cheque would be the opening date of FD and curiosity shall be calculated from this date solely
  • Deposits will be made in multiples of Rs. 100
  • A depositor could, at his will, get the curiosity credited to their financial savings account




Post Office FD Interest Rates – FAQs

What is the best rate of interest Post workplace fastened deposit provides?

Currently, the best rate of interest supplied by publish workplace fastened deposit is 7.70% for five years’ tenure.

What is the minimal deposit required to open a publish workplace fastened deposit account?

The minimal quantity required to open a Post workplace FD account is Rs. 1000.

What are the paperwork wanted to open a set deposit account in a publish workplace?

You ought to have the next paperwork to open a publish workplace fastened deposit account:

  • Photo ID Proof that features Aadhaar Card, Voter ID Card, and so on.
  • Address Proof that features Electricity Bill, Water Bill, Ration Card, Aadhar Card, and so on.
  • PAN Card
  • Passport measurement images (2 or extra)

Can we take a mortgage in opposition to Post Office FD?

No, this facility isn’t out there in publish places of work thus far.

Q. Can one avail mortgage in opposition to Post Office FD?

At current, this facility isn’t talked about.

Q. How many members can open this FD collectively?

It will be opened with a most of three members.

Q. Can one declare 80C deductions for funding executed in publish workplace time deposit account?

An funding made for a interval of 5 years will be claimed for tax deductions u/s 80C of the Income Tax Act, 1961.

Q. Do I’ve to pay tax on investments made in Post Office fastened deposit scheme?

TDS is NOT charged on time deposit/ fastened deposit or recurring deposit made in publish places of work.




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