A Post Office fixed deposit, better known as Post Office Time Deposit Account, is a kind of FD introduced by the Indian Postal services. The Government of India guarantees the backup of your fixed deposits in India Post. The main motive of this service is to provide the citizens with secure money savings. In this article, we will discuss FD in post office interest rate 2021.
Table of Contents
What is the FD rate in Post Office?
When we think of fixed deposits, we think of security and assurance of our money. These are among the safest investment avenues that banks, NBFCs, or India Post provide us with. PO fixed deposits are introduced for those individuals who are looking for a safe and secure investment avenue.
Post Office FD Interest Rate 2021
Post Offices provide you with certain interest rates on your fixed deposits in their banks. The FD in Post Office interest rate 2021 is evaluated by the Government of India. The PO FD interest rate has been distributed among several small savings schemes. The FD in Post Office rate of interest is, however, determined by the performance of Government securities or bills.
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Features
Having an FD account in the India Post opens you to several features and services. Below, we have added short tables that will help you understand what you will be getting after opening an FD account in India Post.
| Particulars | Details |
| Tenure | 1,2,3, and 5 years |
| Minimum deposit amount | Rs.1,000 |
| Interest rates | 5.5% P.A to 6.7% P.A |
| Interest payment | Annually |
| Mode of Payment | Cash or Cheque |
| Premature Withdrawal | Allowed after 6 months |
| Nomination Facility | Available |
Benefits
When you open an FD account in India Post, you get multiple amazing benefits and services. PO fixed deposits come among the most secured investment avenues of all. Below, we have mentioned some of the major benefits you will get by opening an FD account in the India Post.
1. PO FD accounts are backed by the Government of India that allows you complete security and assurance.
2. India Post is a non-profit organization and the main motive of this organization is to provide the customers with social welfare services.
3. You can open fixed deposits in India Post both using online and offline methods.
4. You will not be charged any TDS on the interest rate earned from your fixed deposits.
5. You alone or in a group (of up to 3 members) are allowed to make deposits in the India Post.
6. The amount from your FD account in India Post can easily be transferred to other accounts without any issue.
7. You can add a nominee to your account even after its opening
8. If you are a minor, you can also get your account opened under valid guardianship.
9. You can open more than one fixed deposit account using the same identity.
Eligibility Criteria
To open fixed deposits in India Post, you just need to pass some simple eligibility criteria. We have mentioned below the simple yet important eligibility criteria set by the India Post for an individual to open an FD account.
1. The applicant must be a single adult
2. Joint Account (up to 3 adults)
3. A guardian can open an account on behalf of a minor.
4. A guardian on behalf of a person of unsound mind.
5. A minor above the age of 10 years can get his/her fixed deposit account opened in India Post.
6. The applicant must be a legal citizen of India.
Fixed Deposit Post Office Interest Rates Table 2021
The FD in Post Office rate of interest is announced every quarter based on the yield on government bonds since April 1, 2016. All these changes and amendments are executed under the small savings schemes. Below, we have created the Post Office FD interest rates table 2021. It will help you understand what is the interest rate for FD in Post Office in 2021?
Post Office FD Interest Rate Table 2021
| Tenure | Interest Rate |
| 1 Year | 5.5% P.A |
| 2 Year | 5.5% P.A |
| 3 Year | 5.5% P.A |
| 5 Year | 6.7% P.A |
Post Office FD Interest Rate 2021 for Senior Citizens
The post office FD interest rate senior citizen is also equal to other individuals.
The above mentioned are the post office FD interest rate today. However, the interest rate in FD in Post Office may change when the Government of India announced rate of interest for small savings schemes every quarter.
Post Office FD Interest Rate Calculator
Before making any deposit in your fixed deposit account, you need to understand the Post Office fixed deposit interest rate calculator.
A Post Office FD rate calculator is a tool that helps you evaluate the average amount you will be earning after depositing a certain amount for a particular period.
To evaluate your earnings from the PO Time deposit rates, you need to enter your deposit amount, tenure, and the current FD interest rate for the current tenure.
After entering all the required details, click on calculate to evaluate the total amount you will get after the end of the tenure.
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Premature Withdrawals
India Post also provides you with the facility of premature withdrawals. It refers to the withdrawal of funds from your FD account before the maturity of the account. India Post doesn’t allow you to withdraw the funds from your pre-mature FD account before 6 months of the account opening.
Frequently Asked Questions
1. What is the highest interest rate on fixed deposits accounts in India Post?
According to the latest information, the highest interest rate on fixed deposits is 6.70% per annum.
2. At what time will my amount be doubled in the PO fixed deposit account?
When taking the interest rate of 6.7% per annum, you will need to put your money in PO FD account for about 11 years to get it doubled.
3. Are the post office FD rate for Sr. citizen equal to other individuals?
Yes, the Post Office FD interest rate for senior citizens is equal to other individuals.
4. Is it safe to invest in Post Office?
Yes, these FD accounts backed by the Indian Government and they hold the responsibility if any issue occurs.
Final Thoughts
Opening an FD in India Post can be a very wise decision you can make for your savings. Fixed deposit accounts used to save a high amount of money to get reasonable interest on that. The FD in Post Office rate of interest has been quite impressive as compared to other banks. Along with reasonable interest rates, you will get the sovereign backup of the Indian government on your PO fixed deposits.
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