Post Office Fixed Deposits (FDs) are a popular investment option for many people in India. They offer a safe and secure way to grow your money, safely, backed by the government.As the oldest form of investment offered by postal services, Post office FD shines as a great option for anyone looking to invest. This blog post will help you know everything about post office FD interest rates.
To help you make a choice, We have discussed the types of FDs, interest rates, minimum deposit amount, and the tax implications. This article will also provide some tips on how to choose the right post office fd scheme for your needs.
What is a Post Office FD?
- Post Office FD’s aresaving schemesoffered by the Indian Postal Service. When you open an FD, you deposit a lump sum of money with the post office, and they agree to pay you interest on that money for a fixed period of time.
- The interest rates on Post Office FD schemes are set by the government, and they are reviewed every quarter.
The current post office fd interest rates rates for term deposit with different tenures are as follows:
| Tenure | Interest Rates |
| 1 year | 6.8% |
| 2 years | 6.9% |
| 3 years | 7% |
| 5 years | 7.5% |
Some important point while joining for Post Office fixed deposit scheme-
- Senior citizens are eligible for a higher interest rate of 0.5% on all tenures.
- The minimum deposit amount for a Post Office FD is Rs. 1,000, and there is no maximum limit. You can open an FD in your own name, or you can open a joint FD with another person.
Types of Post Office FD Schemes
Post Office Time Deposit (POTD):
| Feature | Details |
| Minimum Investment Amount | Rs. 100 |
| Maximum Investment Amount | No Maximum limit |
| Interest rates | Varies from 5.5% to 7.4% per annum depending on the tenure |
| Interest Payment | At the end of the maturity period |
| Tenure | 1 year to 10 years |
| Liquidity | Can be withdrawn before maturity, but there will be a penalty |
| Eligibility | Any Indian citizen |
Tax Benefits: Interest earned is taxable.
Post Office Monthly Income Scheme (MIS):
| Feature | Details |
| Minimum Investment Amount | Rs. 1500 |
| Maximum Investment Amount | Rs. 4.5 lakh |
| Interest rates | 7.4% per annum |
| Interest Payment | Monthly |
| Tenure | 5 years |
| Liquidity | Can be withdrawn before maturity, but there will be a penalty |
| Eligibility | Any Indian citizen |
Tax Benefits: Interest earned is taxable, but it is exempt from income tax up to Rs. 30,000 per annum for individuals and Rs. 60,000 per annum for Hindu Undivided Families (HUFs).
Senior Citizen Savings Scheme (SCSS):
| Feature | Details |
| Minimum Investment Amount | Rs. 1000 |
| Maximum Investment Amount | Rs. 15 llakh |
| Interest rates | 7.4% per annum |
| Interest Payment | Quaterly |
| Tenure | 5 years |
| Liquidity | Can be withdrawn before maturity, but there will be a penalty |
| Eligibility | Any Indian citizen |
Tax Benefits: Interest earned is taxable, but it is exempt from income tax up to Rs. 50,000 per annum for individuals and Rs. 1 lakh per annum for Hindu Undivided Families (HUFs).
National Savings Certificate (NSC):
| Feature | Details |
| Minimum Investment Amount | Rs. 100 |
| Maximum Investment Amount | No maximum limit |
| Interest rates | 7.7% per annum |
| Interest Payment | At the end of maturity period |
| Tenure | 5 years |
| Liquidity | Can be withdrawn before maturity, but there will be a penalty |
| Eligibility | Any Indian citizen |
Tax Benefit: Interest earned is taxable, but it is exempt from income tax up to Rs. 1.5 lakh per annum for individuals and Rs. 3 lakh per annum for Hindu Undivided Families (HUFs).
Kisan Vikas Patra (KVP):
| Feature | Details |
| Minimum Investment Amount | Rs. 100 |
| Maximum Investment Amount | No maximum limit |
| Interest rates | 7.7% per annum |
| Interest Payment | At the end of maturity period |
| Tenure | 5 years |
| Liquidity | Can be withdrawn before maturity, but there will be a penalty |
| Eligibility | Any Indian citizen |
Tax Benefit: Interest earned is taxable, but it is exempt from income tax up to Rs. 1.5 lakh per annum for individuals and Rs. 3 lakh per annum for Hindu Undivided Families (HUFs).
Mahila Samman Saving Scheme Post Office:
| Feature | Details |
| Minimum Investment Amount | Rs. 100 |
| Maximum Investment Amount | Rs. 1.5 lakh |
| Interest rates | 7.6% per annum |
| Interest Payment | Monthly |
| Tenure | 10 years |
| Liquidity | Can be withdrawn before maturity, but there will be a penalty |
| Eligibility | Only women can open an account under this scheme. |
Tax Benefits:Interest earned is exempt from income tax up to Rs. 30,000 per annum for women.
How to Choose the Right Post Office FD for You?
There are a few factors to consider when choosing the right Post Office FD for you:
- The tenure: The tenure of your FD will determine the interest rate you earn. The longer the tenure, the higher the interest rate.
- Your risk appetite: If you are looking for a safe and secure investment, then a Post Office FD is a good option. However, if you are looking for a higher return, you may want to consider other investment options.
- Your liquidity needs: If you need access to your money before the maturity date, a short term FD is your top choice. However, if you are not planning to withdraw your money before the maturity date, you can choose a longer-term FD to earn a higher interest rate.
Post Office FD schemes are a safe and secure investment option that offers a guaranteed return. They are a good option for people looking for a low-risk investment with a steady income.
If you are considering investing in a Post Office FD, be sure to compare the interest rates offered by different post offices and choose the option that is right for you.
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FAQs
Q.Which FD scheme is best in the post office?
A.The best FD scheme in the post office depends on your individual needs and their capacity to bear risks.
Q.What is the FD rate in post offices for senior citizens?
A.The FD rate in post offices for senior citizens is currently 7.4% per annum for a maturity period of 5 years. This is 0.5% higher than the FD rate for general citizens.
Q.What is the monthly interest of 1 lakh in the post office?
A.The interest rate on FDs in post offices is revised every quarter by the Government of India. You can check the current interest rates on the post office website.
Q.What is the interest rate of 2 lakh FD in the post office?
A.The interest rate of 2 lakh FD in post office depends on the tenure of the FD.
Q.Which scheme is best for monthly income in the post office?
A.The Post Office Monthly Income Scheme (MIS) is the best scheme for monthly income in the post office.
Q.What is the interest on a 5 years fixed deposit in the post office?
A.The interest on a 5-year fixed deposit in the post office is currently 7.4% per annum.
