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The Postal Department of India has been serving the people of the country with more than 1.5 lakh post offices across the nation with its widely distributed network. Not only does the Indian post department deliver couriers and posts, they have also been serving people with insurance services for a long time now. We have several Post Office schemes such as savings accounts, recurring deposit accounts, and fixed deposit accounts with good interest rates to choose from.
Further, the postal department of India also offers other investment policies such as Postal Life Insurance, Senior Citizen Savings Scheme, Small Savings Schemes, National Savings Certificate etc. for the benefit of the common people.
In this post, we are discussing the Fixed Deposit plans and Post Office FD rates in India.
The postal department of India offers FD investment plans with attractive returns. Depending on the tenure of the FD, which ranges from one to five years, the interest rates of post office FD plans are decided. The table below shows the updated Post Office interest rates.
|FD Tenure||Interest Rate for Regular Citizens||Interest Rate for Senior Citizens|
|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%|
Unlike in banks, the Post Office FD schemes do not allow any additional interest to senior citizens as you can see in the table above. Hence, the earnings in post office interest rates are the same for everyone alike.
Below is a comparison of Post Office fixed deposit interest rate with that of interest rates on FDs offered by Indian banks
|Bank Name||FD interest Rates 2023 (Banks) For Regular Citizens||FD interest Rates 2023 (Banks) For Senior Citizens||FD Interest Rates 2023 (Post Office)|
|State Bank of India||2.9% – 5.5%||3.4% – 6.3%||5.5% – 6.7%|
|Axis Bank||2.5% – 5.75%||2.5% – 6.5%||5.5% – 6.7%|
|HDFC Bank||2.5% – 5.6%||3.00% – 6.35%||5.5% – 6.7%|
|Punjab National Bank||2.9% – 5.25%||3.4% – 5.75%||5.5% – 6.7%|
|Union Bank of India||3% – 5.5%||3% – 5.5%||5.5% – 6.7%|
|Canara Bank||2.9% – 5.25%||2.9% – 5.75%||5.5% – 6.7%|
|Bank of India||2.85% – 5.05%||3.35% – 5.55%||5.5% – 6.7%|
|IDBI Bank||2.7% – 5.5%||3.2% – 6%||5.5% – 6.7%|
The basic features of Post Office fixed deposit interest rates table 2022-23 are mentioned below:
|Rate of Interest||5.50% to 6.70%|
|FD Tenure||1, 2, 3 and 5 years|
|Minimum Deposit Amount||INR 1,000|
|Premature Withdrawal||Available after 6 months|
|Payment Mode||Cheque / Cash|
Below are some of the factors which makes Post Office FD Scheme one of the ideal choices for many:
This is another huge advantage of investing in Post Office FD since the investor can get tax benefits under this scheme. No TDS is deducted on the post office FD interest earned. Post Office FDs are specially meant for people with low-income and thus these schemes are not levied with tax liability.
However, if the interest amount earned by the investor in a financial year is above INR 40,000 for regular customers and INR 50,000 for senior citizens, they may be levied with TDS. For tax saving, an investor can claim for Post Office FD tax deduction under section 80C of Income Tax of up to INR 1.5 lakh per financial year.
Know More: Post Office Monthly Income Scheme
To be eligible for opening a Post Office FD Account, one has to be:
You must provide the below-mentioned documents to open an FD account in a Post Office:
Once you are sure about your investment in the post office FD scheme, it is better to use a post office FD calculator so that you know the FD interest rates. One can use the freely available online FD calculator to know the applicable interest rates of post office FD.
All you need is to supply the tool with information such as the deposited amount, Post Office FD interest rate, and tenure of the FD to get accurate results.
|Investment in INR||Interest Rate (in %)||Policy Tenure||Returns (on Interest earned)||Returns (on Maturity amount|
|1 Lakh||6.7||3 years||21,477||1,21,477|
|5 Lakhs||6.7||3 years||1,07,384||6,07,384|
|10 Lakhs||6.7||3 years||2,14,768||12,14,768|
The Post Office Fixed Deposit account can be either opened online or via offline mode:
To open an FD account in a post office, one can use the net banking facility. Below are the steps:
Below are the steps for opening a Fixed Deposit account offline:
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What is the maximum interest rate offered on the FDs of the Post Office?
At present, the Post Office FDs provide a maximum interest rate of 6.70% interest for a tenure of five years.
Which is better - Post Office FD or Bank FD?
It actually depends on the needs and requirements of individuals. However, the Post Office FDs are regarded as Small Savings Scheme and they allow comparatively better rates and returns as compared to FDs of banks.
Can I save in the Post Office FD? Are they safe?
Yes, Post Office FDs are safe as they are offered by government run post offices. Further, the Post Office FDs also come under the National Savings Scheme.
Which FD scheme (Bank or Post Office) gives the highest interest rate?
In most cases, the Post Office FD interest rate is high as compared to Bank FD interest. But it depends from bank to bank.
Do I get a loan against my Post Office FD?
Yes, the Post Office allows customers to get loans against their FD amount.
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