Latest Post Office Fixed Deposit Rates in India 2025

Post Office Fixed Deposit Interest Rates

Rates for Tax-Saving Post Office 5-year Fixed Deposit

If you open a fixed deposit with the post office for a tenure of 5 years, you will be eligible to claim tax benefits under Section 80C of the Income Tax Act, 1961.

Post Office Time Deposit Account

There is no maximum restriction, and you can open a Post Office Time Deposit (TD) Account, also known as a Post Office Fixed Deposit (FD) account, with a minimum of Rs. 1,000 and multiples of Rs. 100.

Features of Post Office Fixed deposit (FD)

The Post Office Fixed Deposit (FD) scheme or Post Office Time Deposit is a true and government-backed, very safe investment option offered by India Post. It provides secure returns with flexible tenures and tax saving advantages for investors.  

Here are the Features of the scheme: 

1. Account Transferability: The Post Office FD accounts can be transferred from one post office to another post office anywhere in the country comfortably. This added advantage is convenient and allows flexibility for those who have moved due to work or personal reasons. 

1. Unlimited Accounts: The investors are allowed to open many fixed deposit accounts in a post office anywhere in the country. There is no cap on how many FD accounts one can open. 

1. Account Conversion and Flexibility: This scheme allows you to be flexible with your account. You can freely convert a single account to a joint account, or a joint account to a single account, if the account holder so desires. 

1. Nomination Facility Holders:  The account holder may nominate a person who will receive the amount of the deposit in case of the death of the depositor. This nomination facility is available both upon the opening of the account, and thereafter, facilitating the addition or updating of nominees. 

1. Deposit via Cash or Cheque: The account may also be opened via cash or cheque, thus providing ease regarding deposit depending on the convenience of the investor. 

1. Minimum and Maximum Investment Limits: The minimum amount of investment is Rs. 1,000; future investment may be made in multiples of Rs. 100. There is no maximum limit to the deposit amount, thus making this suitable for both small and large investors. 

1. Minor Accounts: A fixed deposit account can be opened in the name of a minor. However, when the minor attains majority the account must be transferred to their name through the proper application process. 

1. Tenure Extension: An investor can apply to the post office to extend the FD tenure. This will allow them to proceed with their investment without missing a beat. 

1. Annual Interest Payment: Post Office FD interest is calculated annually and credited directly to the depositor's savings account. This is easy and allows the interest to accrue without concern. 

1. Tax Benefits Operative Section 80C: An FD can be deducted from Tax under section 80C of the Income Tax Act, 1961 if it is for a five-year period. This can make it ideal for tax-saving investments.  

1. Premature Closure Allowed: Investors can terminate the FD account before the maturity date but can only terminate it six months after the date of deposit. This does provide some liquidity if necessary. 

1. Interest Rate Upon Premature Closure: Upon termination of investment prior to the maturity date: The interest rate will be 2% less than the rate applicable for the period completed or if the period was less than a year, the rate applicable will be the current Post Office Savings Account interest rate. 

Types of Post Office FD Schemes 

The various types of Post office FD schemes are mentioned below 

1. Post Office Savings Account - A Post Office Savings Account is one of the most well-known and conveniently accessible savings accounts in India. The minimum and maximum balances that can be stored are both Rs.500. A single account may only be opened by the individual. The amount that can be deposited into a post office savings account is limitless. 
2. National Savings Monthly Income Account - The National Savings Monthly Income Account allows depositors to manage their normal expenses by providing monthly interest income. 

Post Office FD Rates and Banks FD Rates – A Comparison 

A comparison between Post Office FD rates and other banks FD rates 

Who Can Open a Post Office Fixed Deposit Account?

Those in the Post Office TD scheme are inclusive and open to a variety of account holders. The following people are permitted to open a Time Deposit Account: 

1. Any resident Indian over the age of 18 can open the TD account solely in their own name. 

1. Joint account holders: Up to three adults can open a TD account jointly. The account can be established in two different ways: Joint A Type - only the first account holder can operate the account and Joint B Type - all account holders must jointly operate the account. 

1. A guardian on behalf of a minor: A parent or legal guardian may open an account in the name of a minor child. 

1. A guardian on behalf of a person of unsound mind: Protects dependents who may reside with mental disabilities. 

1. A minor aged 10 or greater: A child who is a minimum of 10 years of age can open an account in their own name and operate it independently. 

Documents Required for Post Office FD Scheme 

The various documents required for Post Office FD scheme are mentioned below - 

1. Post Office FD application form 
2. Proof of address – telephone bill, electricity bill, passport, etc. 
3. Proof of identity – Aadhaar card, PAN card, driving license, Voter ID card, etc. 

Available Deposit Tenures 

The Post Office TD accounts offer tailored periods of investment to meet a variety of savings goals, from short-term financial planning, to longer-term goals. This period of investing provides a range expected timelines that savers can choose in relation to their needs. 

For example, someone may have needs such as short-term financial emergencies, educational needs, or retirement savings. Shorter tenures could and might be more appropriate for holiday planning, or gadget purchasing, whilst the 5-year term offers a tax advantage and is most appropriate for long-term planning. Investors can choose between:  

1.  1 year 

1.  2 years 

1.  3 years 

1.  5 years 

Maturity and Repayment of TD account 

The actual principal invested becomes eligible for payment upon maturity, or the end of a player's select deposition commitment (1, 2, 3 or 5 years) from the time the account was opened.  

Upon maturity, the entire payment (as well as interest accrued), will be paid to the account holder. Investments which are not renewed or extended will receive no interest after the maturity date. 

So fairly renewal is important if the account is to continue to earn returns from the period of investment. This is a great assurance as it means the scheme acts as genuine fixed deposit once provided ensuring limits to returns, securing the capacity to repay at the end of the selected terms.

Extension of TD Account After Maturity 

The Post Office TD scheme allows account holders to extend their account upon maturity for the same tenure to encourage a long-term savings habit.  

Extension rules:  

1. 1 Year TD - Must be extended within 6 months from the maturity date. 

1. 2 Year TD - Must be extended within 12 months from maturity. 

1. 3 Year or 5 Year TD - May be extended within 18 months from maturity date. 

How to Extend a Post Office Time Deposit (TD) Account  

Extending the Time Deposit account allows the account holder to continue earning interest for another tenures (the same duration as the original time period). The interest rate will be the rate applicable on the date of maturity. 

Follow the instructions given below for Extension: 

1. Step 1: Ensure the Account Has Matured. The investor must wait until the TD account has matured. The account holder can only apply to extend the account after it has reached the end of the tenure, which is either 1 year, 2 years, 3 years, or 5 years. 

1. Step 2: Attend the Post Office Location of the Account. The investor or account holder must attend the post office branch the TD account was opened in to process the extension. 

1. Step 3: Obtain Extension Form. Request the prescribed format ‘Extension Form for Time Deposit Accounts’ at the Post Office. It may also be possible to download the form from the official India Post website. 

1. Step 4: Fill Out the Required Information. Complete the extension form with the correct details, which includes the name of the account holder, the account number, type of deposit and the tenure for extension required. 

1. Step 5: Attach Required Original Passbook. In addition to submitting the completed extension form, the account holder must attach their original Time Deposit passbook, since updates will be made to it, and it will be returned to the investor, or account holder.  They serve both as a verification tool to ensure accuracy of information, as well as to provide an updated record. 

1. Step 6: Submit the Documents to the Post Office. Submit the form and passbook at the appropriate counter. Staff will process your extension request and record the new maturity date. 

1. Step 7: Collect the Updated Passbook. After the extension is approved, you will receive the updated passbook showing that the maturity for the account has been extended. 

1. Optional Step: On the date of opening a new TD account, depositors can also submit a written request to automatically renew the account at maturity. The post office will be able to complete the renewal as requested without the need for subsequent written request. 

Premature closure of TD Account  

The option of premature closure is available for the Time Deposit to allow flexibility when and if the time arises. Although the Time Deposit encourages disciplined saving habits, some flexibility is required. 

Key Rules for Premature Closure  

1. No withdrawal is allowed up to six months from the date the account is opened.  

1. If closure occurs after six months but before the end of one year, interest will be paid equal to the Post Office Savings Account interest rate. 

1. If closure occurs upon completion of more than one year on a 2 Year, 3 Year or 5 Year TD, interest is paid at: 2% below the TD interest rate, for the completed tenure.  

1. For partial years, interest is paid in accordance with the Post Office Savings interest rate. 

Procedure for Termination of Post Office Time Deposit Account Before Time 

Termination of Post Office Time Deposit Account Before Time simply indicates closure of the TD account before maturity. The premature closure of a TD account is allowed in accordance with certain guidelines and the account holder will earn less interest. 

The procedure for termination is as follows: 

Step 1: Eligibility for premature account closure. The premature closure of the Time Deposit Account is permitted only after a period of six months from the date of deposit. 

Step 2: Go to the Post Office where the TD Account was opened. The premature closure request has to be made to the same post office where the TD account was originally opened. 

Step 3: Obtain application form for premature closure. Get the prescribed 'Application for Premature Closure of TD Account' either from the Post Office counter or from the India Posts official website (if available). 

Step 4: Filling out the Premature Closure Form. Fill in the necessary details like the account holder name, account number, reason for premature closure (the reason for premature closure is optional), and sign the form. 

Step 5: Attaching original Passbook. Once you filled the closure form, attach the original TD passbook for processing the closure as well as issuing the payout. 

Step 6: Submitting the Documents to the Post Office. You should take the filled form and the passbook and present them at the counter. They will check the details and start the closure process.  

Step 7: Get your final payment. Once the post office process is verified, the post office will process the closure and pay you the maturity payment (principal and interest, if any) by cheque, cash or transferring the amount to your associated savings account. 

Step 8: Receive Acknowledgement or Closure Receipt. Once the closure has taken place, obtain a stamped acknowledgement or receipt that indicates the premature closure. Using this receipt will lead to better memory for a formal document that will act as an immutable minimum record of the transaction. 

Note: If the account holder passes away, the deposit amount is distributed to the designated nominees or legal heirs. If there are many legal heirs, the sum is distributed in the proportions determined by the account holder. If no proportions are indicated, the sum will be divided equally among all legal heirs. Account Extension of Post Office FD Scheme 

Post Office Fixed Deposit Calculator 

You can use a free and simple online FD calculator to determine how much interest you will receive on a Post Office Fixed Deposit account before opening one. Simply enter the amount you want to invest, the current rate of interest for the tenure you want to invest in, and the type of interest compounding frequency. The exact amount you will earn with interest will be displayed on the page immediately.