The Department of Posts 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.
Post Office FD Rates
| Deposit Tenure | Post Office FD rates (p.a.) |
| 1 year | 5.50% |
| 2 years | 5.50% |
| 3 years | 5.50% |
| 5 years | 6.70% |
Post Office FD Account
The Post Office FD Account can be started with a minimum of Rs. 1,000 and a maximum of Rs.10,000 in multiples of Rs.100.
Post Office FD Rates Highlights
- The highest Post Office FD interest rate is 6.70 percent per annum for a 5-year term.
- Interest rates range from 5.50 percent to 6.70 percent per annum.
- For a one-year term, the interest rate is 5.50 percent per annum.
- For a two-year term, the interest rate is 5.50 percent per annum.
- Interest rate for a three-year period: 5.50 percent per annum
Withdrawal of Post Office FDs Before Due Date
A Post Office FD or Term Deposit can be withdrawn prematurely between 6 months and 1 year after the account is opened. If withdrawal is not permitted within six months of account opening, the account will be closed.
On Post Office FDs, TDS is deducted.
Deposits having a 5-year term are eligible for a tax deduction under Section 80C of the Income Tax Act of 1961. This rule will take effect on April 1, 2007. You can take the aid of the post office fixed deposit calculator for further information!