Post Office Fixed Deposit Interest Rates 2022 | PO (Dak Khana) FD Current Rate

The Department of Posts, Ministry of Communications, of the Government of India, offers fixed deposit accounts with excellent interest rates and terms ranging from one year to five years. The interest is paid on a yearly basis, with a minimum deposit of Rs.1,000 and no upper limit. This article will explain to you details related to the Post Office Fixed Deposit Interest Rates

Post Office Fixed Deposit Interest Rates

Post Office Fixed Deposit Features

Post Office Fixed Deposits Interest Rates are one of the greatest investment options for depositors who want to invest in a fixed income instrument and earn higher returns than a savings account. The following are some of the key characteristics of a Post Office Fixed Deposit:

  • Deposit Amount: A Post Office FD can be opened with as little as ₹ 1,000 with no upper limit
  • FD TenureTenure of FDs varies from 7 days to 5 years.
  • Interest Rates: 5.50 percent to 6.70 percent per annum
  • Senior Citizens FD Rate:  5.50 percent p.a. to 6.70 percent p.a.
  • Highest Interest Rate: According to today’s rate, the highest interest rate on a Post Office FD is 6.70 percent for a 5-year term.
  • Post Office Deposits are protected by the Deposit Insurance Scheme of the Reserve Bank of India, which insures up to 5 lakh of a depositor’s total deposits.
  • Loan against FD: The Post Office offers a loan against FD to its depositors to enable them fulfil their liquidity needs without having to break their FD.
  • Auto-renewal service is available.
  • Nomination service is available.
  • Popular FD Plans: Time Deposit Account with the National Savings

SBI Fixed Deposit Interest Rate 

Today’s Post Office Fixed Deposit Interest Rates

The Government of India updates interest rates on Post Office deposits on a regular basis. Updated Post Office Fixed Deposit Interest Rates for 2021 are as follows:

TenureInterest Rate
7 days to 1 year5.50%
1 year 1 day to 2 years5.50%
2 years 1 day to 3 years5.50%
3 years 1 day to 5 years6.70%

Post Office Fixed Deposit Interest Rates for Senior Citizen

In order to encourage older individuals over the age of 60 to invest in fixed deposits, the Post Office pays them a higher interest rate than the general public. The following are the fixed deposit interest rates for elderly citizens in Post Office 2021:

TenureInterest Rate for Senior Citizens
7 days to 1 year5.50%
1 year 1 day to 2 years5.50%
2 years 1 day to 3 years5.50%
3 years 1 day to 5 years6.70%

Open Post Office Savings Account

Premature Withdrawal – Post Office Fixed Deposit Rates 

You can shut your Post Office FD account early, however, there is a 1% penalty for early withdrawal. Also, the penalties for prematurely closing a Post Office FD are subject to change and may vary depending on the deposit scheme.

Nomination Facility on Post Office FD

For the Post Office FD, there is a nomination facility. On Fixed Deposits, the Post Office also provides a nomination service that allows the depositor’s family to claim the money in the event of the depositor’s death. When opening a Post Office FD account, you can only nominate one person. At the time of claim, the candidate must provide identity verification.

Description of the National Savings Time Deposit Account

The Post Office Time Deposit Account is offered by the Department of Post, Ministry of Communication (TD). It is a type of investment in which a lump-sum sum of money is invested for a set period of time, ranging from one month to five years, at a predetermined rate of interest. At post offices, you will be able to open a Post Office Time Deposit Account (TD). It aids in the creation of wealth as well as the reduction of taxes. The following are the characteristics of the National Savings Time Deposit Account:

  • Cash or check can be used to open an account.
  • It is possible to nominate someone.
  • Accounts can be transferred from one post office to another.
  • Minors must apply for account conversion in their own name once they reach the age of 18.
  • Interest is paid once a year.
  • Premature withdrawals are not permitted before the six-month period has expired; however, if the account is closed between six and twelve months from the date of opening, the interest rate on the Post Office Savings Account will be payable.
  • There is an option to open an account online.
  • The corpus under 5 Years’ Time Deposits qualifies for the benefit of Section 80C.
  • A minimum deposit of Rs. 1000 in multiples of Rs. 100 is required.
  • There is no upper limit.

What is Mutual Fund

Who is Eligible to Participate?

  • A single adult.
  • Minor above 10 years of age.
  • Joint Account (Maximum 3 adults).
  • A guardian on behalf of a minor or Person of unsound mind.

How to Earn up to 33,500 per lakh from Post Office Fixed Deposit

To earn 33,500 per lakh on a 60-month online FD: –

  • Investment Amount – ₹ 1,00,000
  • Calculation formula – Simple interest
  • FD Interest Rate – 6.70%
  • FD Maturity Amount – ₹ 1,33,500
  • Tenure – 60 months
  • Interest Payout – ₹ 33,500

Note: Before you invest in a fixed deposit account, compare the rates given by several financial organizations. You can earn the most money this way.

Documents Required to Open Fixed Deposit Account in Post Office

  • KYC documents and Passport size photographs.
  • Passport size photographs
  • Age proof (Birth certificate, matriculation certificate, etc,)
  • Bank A/c information

Bank with Highest Interest Rate on Fixed Deposit

Opening an FD Account at the Post Office

Follow the steps outlined below to open a Post Office Fixed Deposit:

  • Log in to your FD account on the Post Office’s official website.
  • Select Fixed Deposit from the menu, then the type of FD you want to open, and then click Proceed.
  • If you are over 60, enter the deposit amount and pick the Senior Citizen option.
  • Select the duration of the deposit and the frequency with which interest is paid out.
  • After reading the terms and conditions, click Submit to open the Post Office FD.

Loan Against Fixed Deposit Post Office

The Post Office provides loans of up to 90% against its own deposit. Please keep in mind that the Post Office will not lend you money if you have an FD with another bank. A loan against FD is available from the Post Office at a cost of 6.5 percent to 7.7%.

The maximum loan tenure is limited to the FD’s maximum term.

Post Office Timings in India 

FAQ’s

What is the Post Office’s highest fixed deposit interest rate?

On Post Office fixed deposit accounts with a 10-month term, you can earn up to 6.70 percent interest.

Are there any special Post Office FD rates for senior citizens?

Yes, when compared to FD rates, older persons receive higher interest on their savings. Regular FD interest rates range from 5.50 percent to 6.70 percent. In comparison, senior citizens FD at the Post Office range from 5.50 percent to 6.70 percent.

What are the current interest rates on Post Office FDs for 2021?

Current interest in Post Office FDs ranges from 5.50 percent to 6.70 percent for various tenures.
On a tenure of 6.70 months/years, the greatest rate is available. Interest rates for senior citizens range from 5.50 percent to 6.70 percent.

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