Want To Open A Fixed Deposit Account In Post Office? All You Need To Know

Want To Open A Fixed Deposit Account In Post Office? All You Need To Know

India Post or Department of Posts, the postal system of the country, provides a range of services. The Department of Posts offers several savings schemes with different interest rates. Interest rates on post office saving schemes move in line with the government’s interest rates on small savings schemes, which are revised on a quarterly basis. One such savings scheme offered by India Post is time deposit or fixed deposit account. Interest rate on the time deposit account is payable annually but calculated quarterly.

Here are key things to know about post office fixed deposit account:


Opening of account

Post office fixed deposit account can be opened by an individual by cash or cheque. In case of a cheque, the date of realisation of cheque in government’s account shall be the date of opening of account.


The minimum amount required to open a post office FD account is Rs. 200 and in multiple thereof. However, there is no maximum limit.

Interest rate and tenure

The fixed deposit account in a post office offers interest rate in the range of 6.9-7.7 per cent for a period of 1-5 years. For 1 year, 2 years and 3 years period, post office offers an interest rate of 6.9 per cent. On a 5-year period, investors get 7.7 per cent.

Income Tax benefits

Investments made under the 5-year fixed deposit account qualify for income tax benefits under Section 80C of the Income Tax Act, 1961.

Other facilities

Nomination facility is available at the time of opening and also after opening of account. The account can be opened in the name of a minor and a joint account can be opened by two adults.