Post Office FD Interest Rate | Updated Returns & Features

Key Insights

1. The Post Office offers a fixed deposit interest rate ranging from 6.9% to 7.5% p.a.
    
2. Post Office FD Interest Rate tenure ranges from 1-year to 5 years.
    
3. You can start investing in a post office fd with ₹1,000 and there is no maximum limit.

The Post Office FD is known as a Time Deposit in the Post Office. The Post Office FD offers 6.9% to 7.5% to our customers in India.

You can start the Fixed Deposit in the Post Office with a minimum fund of ₹1,000 and a maximum of ₹1,00,000 with different types of tenures; each tenure offers a different fixed deposit interest rate at the Post Office.

A month ago, I checked my bank account and realised that ₹80,000 was lying idle. I decided to put it to better use by investing it in a 5-year Post Office FD. I visited the post office, completed the simple formalities and turned my idle money into an investment earning 7.5% per annum.

In this blog, you can learn about the latest interest rate of the Post Office FD 2025, Fixed Deposit schemes, features, comparison with other bank FD rates and eligibility criteria.

Post Office FD Interest Rates 2025

When you're up to date with the Fixed Deposit interest rate, you can easily plan for your goals and future with the Post Office. Here is the list of Interest Rates for 2025 at the Post Office FD:
 

This table helps you understand the latest interest rate of Post Office FD with different tenures.

Types Of Post Office FD

As per economic times, the following are the types of post office FD schemes:
 

From the above-mentioned table, you can see the latest post office FD types and interest rates.

Features and Benefits of Post Office Fixed Deposit

The Post Office offers services for everyone, whether they're lower, middle, or upper class. Here is the list of features and benefits of the Post Office fixed deposit:
 

• Starting with 1 year of tenure and finishing at 5 years.
• You can open multiple Fixed Deposit accounts in the Post Office.
• You can begin a Fixed Deposit Account with a minimum deposit of 1000.
• There is no cap on the maximum deposit amount
• You can open the joint account, and given that the account holders are two adults.

These features help you grow your money with consistency without fear of market influence.

Comparison of Post Office FD Rates with Other Banks

How do we know that the Ujjivan Fixed Deposit is Best for us? The answer is to compare the Post Office Fixed Deposit interest rate with that of other banks. 

Here is the comparison of Post Office Fixed Deposit with other banks:
 

You can compare the Fixed Deposit interest rate with that of other banks and choose the best schemes according to your financial goals in the Post Office.

Eligibility Criteria for Post Office FD Interest Rates

If you want to open a Post Office Fixed Deposit Account, you have to meet the eligibility criteria and provide some required documents. Here is the list of eligibility criteria for Post Office Fixed Deposit:
 

• An individual who is a resident citizen of India
• A single adult
• Joint Account for up to three adults, available as either Joint A or Joint B type
• Joint A-type accounts require all depositors, or the surviving depositors, to jointly operate the account.
• Joint B-type accounts can be operated by any one of the depositors, or by any surviving depositor, individually.
• A guardian on behalf of a minor
• A guardian on behalf of a person of unsound mind (now termed as an Authorised Account)

These eligibility requirements apply to the Post Office Fixed Deposit Account.

Tax Implications on Post Office FD

The Tax deduction in the post office is under section 80C of the Income Tax Act. The maximum amount you can claim is ₹1,50,000 under Section 80C. If the TDS is not deducted, it must be clearly declared in the taxpayer's income tax return.

For senior citizens of India:

The interest paid to senior citizens of the post office is tax-exempt. The interest income is exempt from taxation under Section 80TTB of the Income Tax Act.

Post Office Bank FD Premature Withdrawal 

The FD's premature withdrawal is the act of the owner who wants to close the FD account before the maturity date. 

Premature withdrawal

The premature closure of accounts after 1, 2, 3, or 5 years before 1/12/2011, if the customer withdraws our money after 6 months but before the expiry of 1 year, will result in simple interest being payable to the customer through the post office.

The premature closure of accounts after 1, 2, 3, or 5 years from 1/12/2011 will result in the customer being able to withdraw funds. If the customer chooses to cancel after the specified years have expired, interest will be calculated at the applicable rate.

Post Maturity interest:

The interest shall be simple and calculated at the rate applicable to single or joint savings accounts. For payment of interest, any period less than one month shall be ignored.

The interest shall be paid to the depositor in a lump sum at the time of repayment of the amount due.

Bonus Tip: Do you know? If you want to duplicate a passbook issuance, it costs ₹50, and for the issuance of a statement of account or deposit receipt is ₹20 per case.

How to Invest in Post Office FD?

You can follow these steps to open a fixed deposit account.
 

• You can open a fixed deposit account at your city's post office. You can find it through the Post Office branch locator.
• Fill out the opening form of a fixed deposit in the branch.
• You can fill out the post office deposit account form.
• You have submitted documents such as address proof, ID proof, and PAN Card.
• Now you can decide the tenure and amount of the deposit.

These steps are simple to open a fixed deposit account in the post office.

Conclusion

The Post Office offers a fixed deposit account for Indian people, which guarantees a return unaffected by the stock market, and you can open multiple fixed deposit accounts in the Post Office.

You can open a post office fixed deposit account with a minimum of ₹1000, and there is no maximum limit. You can also open a joint account in the Post Office.

FAQs

Can Post Office FD interest rates increase if I reinvest the maturity amount into a new FD?

Yes, the new FD will earn the prevailing rate on the renewal date, which may be higher.

Do Post Office FD rates change immediately after RBI adjusts the repo rate?

Not instantly. Post Office FD rates are reviewed quarterly by the government, not directly by RBI.

Is the interest earned on the Post Office FD taxable?

Yes, the interest you earn through Post Office FD schemes is taxable.

Will breaking my Post Office FD early change the effective interest rate?

Yes, premature withdrawal leads to reduced interest based on the remaining tenure.
 

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.