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Earn interest up to 7.75% p.a. by investing in a Bajaj Finance Fixed Deposit | Stable Rating - CRISIL’s FAAA & ICRA’s MAAA

Post Office Fixed Deposit (FD) Rates

A Post Office fixed deposit is a fixed deposit investment issued by the Indian Postal Services. It lets you invest your money for a fixed tenor and interest rate, with a guaranteed interest income at the time of maturity. The higher your tenor, the higher the interest rates offered. A lot of people choose to invest in this type of FD because of the safety it offers and also the attractive Post Office FD rates.

 A Post Office fixed deposit is backed by the sovereign guarantee of the government of India. Therefore, people who want a risk free and guaranteed investment option can opt for a Post Office fixed deposit. Given below is the list of the Post Office FD interest rates.

Post Office FD Rates

A Post Office fixed deposit is available for a tenor of 1, 2, 3 and 5 years. The Post Office FD rates are decided by the government of India. Currently, the NBFC & Bank FD rates are the same for a tenor of up to 3 years. For a tenor of 5 years, the Post Office FD rates 2021 are higher. The rates are revised by the government every quarter under Small Saving Schemes, depending on the performance of government securities/bills. A Post Office FD with a tenor of 5 years has an interest rate mark up to 0.25% over the yield of comparable government securities. Let’s have a look at the Post Office FD interest rates 2022.

Tenor (In Years)

Int Rate in Post Office (% per annum)

1 year

5.5%

2 years

5.5%

3 years

5.5%

5 years

6.7%

 

Post Office Fixed Deposit vs Bajaj Finance Fixed Deposit

Bajaj Finance FD on Bajaj MARKETS is one of the best options to earn a guaranteed interest income in a risk-free environment as compared to a Post Office fixed deposit. The most important thing to note is that the interest rates offered by Bajaj Finance FD are higher than the Post Office interest rates. For the same tenor as that of a Post Office FD, you can earn more with Bajaj Finance FD.

Senior citizens also get an additional 0.25% of interest rate benefits. All of this can be availed by a hassle-free online paperless application process. Let’s have a look at the higher interest rates offered by Bajaj Finance FD as compared to the Post Office FD interest rates 2022.

Tenor (In Years)

Interest Rate in Post Office FD (% per annum)

Bajaj Finance FD Interest Rate (% per annum)

1 year

5.5%

5.75%

2 years

5.5%

6.40%

3 years

5.5%

7.00%

5 years

6.7%

7.00%

 

How to Invest in Post Office FD?

Now that you know the Post Office fixed deposit interest rates, check out the step-by-step guide to invest in Post Office FD online:

  1. Go to the official e-banking portal of Post Office

  2. Log in via your registered ID and password

  3. Click on ‘Service Request’ under the ‘General Services’ tab

  4. Follow the directions provided on the screen and click on ‘New Request’ to invest in Post Office fixed deposit

Features of Post Office Fixed Deposits

  • Your account can be transferred from one Post Office to any other PO within the country

  • You can open any number of accounts in any Post Office within the country

  • You can convert a single account into a joint account and vice versa

  • You can nominate someone while opening the account or any time afterwards too

  • You can open the account using cash or cheque

  • Minimum deposit amount is ₹1000

  • No maximum limit on the principal amount

  • You must convert a minor’s account after turning 18

  • You can always extend your tenor

  • Interest is paid annually

  • Interest on FD is credited into the holder’s savings account

Eligibility Criteria for Post Office FD

Here’s who can avail the benefits of high Post Office fixed deposit rates.

  1. A single adult

  2. A joint account with maximum 3 account holders

  3. A minor over the age of 10

  4. A guardian can open an FD account on behalf of a minor or a person of unsound mind

Documents Required to Open Post Office FD

You need to submit the below documents to open a Post Office fixed deposit account.

  • Identity proof (Aadhaar card, Voter ID, Passport, PAN card)

  • Address proof (electricity bills, passport, driving address, etc.)

  • Job card issued by NREGA and signed by the State Govt. Officer

  • A letter issued by the National Population Register containing details like name and address

  • 2 passport-size photos

Premature Withdrawal from FD

For a premature withdrawal of FD, you must submit an application in Form 4. Withdrawal is allowed only after 6 months from the date of deposit. If you make a premature withdrawal after 6 months but before 12 months, interest shall be payable for the completed number of months.

Extension of Post Office FD

You can extend the tenor of your Post Office FD, but only for a few months. Once this window expires, you cannot extend your tenor, meaning you would be asked to withdraw your money on maturity. Even if you don’t withdraw your money, you won’t receive interest on the maturity amount.

Extension of the FD tenor is allowed only twice. You can choose to extend your maturity at the time of opening an FD account, and even opt out of it any time before the end of maturity. Here’s the rule w.r.t. extension post maturity:

Category

Period within which the extension option must be exercised (from the date of repayment)

1-year FD

6 months

2-year FD

12 months

4-year FD

18 months

5-year FD

18 months

 

Pledge Against Post Office FD

With Post Office FD, you also get the option to pledge or transfer it as security. To pledge or transfer your Post Office FD, you need to submit an application in Form 5 along with an acceptance letter from the pledgee. You can transfer your FD account to the following:

  • The President of India or the Governor of a State in official capacity

  • The Reserve Bank of India or a Scheduled Bank or a Cooperative Society/Bank

  • A public or private corporation or a Government company

  • A local authority

  • A housing finance company approved by the National Housing Bank and notified by the Central Government

Payment on Account of Death of the Account Holder

In case a single or all account holders of a deposit account die, the amount will be paid to the nominee or the legal heir. If there is more than 1 nominee, the amount shall be distributed as prescribed by the account holder. If the proportion is not mentioned, the amount shall be distributed among the nominees equally. In case of the death of one account holder, the surviving account holders will be considered as the owner of the account.

Types of Form for a Post Office FD Account

Let’s check out the type of forms required to be submitted to the Post Office of India for different purposes.

Form

Purpose

Form 1

To open an FD account

Form 2

To close an FD account

Form 3

To extend your FD maturity date

Form 4

For premature withdrawal

Form 5

To pledge your FD account

 

While Post Office FD rates are higher as compared to most bank FD schemes, NBFCs like us, at Bajaj MARKETS offer interests that go up to 7.60%. Bajaj Finance FD offers maximum security, flexible premature withdrawal, auto-renewal feature, online account tracking, and so much more. Invest in Bajaj Finance FD and let your money grow rapidly!

FAQs

✔️What is a Post Office Fixed Deposit (POFD)?

A Post Office fixed deposit is a fixed deposit investment tool issued by the Indian Postal Services with the sovereign guarantee of the government of India.

✔️What is the best company FD?

Bajaj Finance FD is one of the best FD investment options as it offers lucrative interest rates that are as high as 7.45% in a safe market environment. All of this can be availed in a hassle-free paperless online application process.

✔️What are the benefits of Bajaj FD Finance?

As mentioned above, Bajaj Finance FD on Bajaj MARKETS offers one of the best interest rates available in the market that are as high as 7.45%. You can invest in a flexible tenor ranging from 12 to 60 months. It also comes with an FAAA rating by CRISIL and MAAA rating by ICRA, offering the highest safety for your amount. With periodic interest payout options, you can start your investment in an easy paperless online process and doorstep document collection facility as well. You can also manage any emergency expense by taking a loan against a fixed deposit of up to 75% of your FD amount.

✔️How can I open a Bajaj Finance FD account?

You can open a Bajaj Finance FD account by filling the online application form available on the official website. The existing customers can also go to the online investment form and start their FD right away. Apart from this paperless process, you can also visit the nearest Bajaj Finance FD branch and start your investment using a debit card or a cheque.

✔️What are the Post Office FD interest rates?

The Post Office FD interest rate 2021 is 5.5% for a tenor of 1, 2 and 3 years. For a tenor of 5 years, the interest rate is 6.7%.

✔️How much can I deposit in a Post Office Time Deposit (TD) account?

You can deposit any amount of more than ₹1,000 as there is no upper limit to invest in a Post Office time deposit.

✔️What are the best Post Office TD interest rates?

The highest interest rate offered by a Post Office FD or Post Office TD is 6.7% for a tenor of 5 years.