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What is a Post Office FD?

A Post Office Fixed Deposit (POFD) is a financial instrument that allows you to invest safely in a specific kind of FD. It is offered by the Department of Posts under the Ministry of Communications of the Government of India.


The interest from this FD is based on the interest rates fixed at the time of investment for the tenor you select. You can choose from different investment tenors and earn interest during this period.  


Just like a regular fixed deposit, the Post Office FD offers security for your investment amount as well as returns. All in all, it offers a safe and secure avenue for wealth accumulation. 


Read on to learn more about Post Office Fixed Deposit and its interest rate in comparison to other issuers. 

Post Office Fixed Deposit Calculator

A Post Office FD calculator is a digital tool that you can use to get an estimate of your earnings. Using this online tool is easy. All you need to do is enter your investment amount, the Post Office FD rate, and the tenor applicable. 


The Post Office Fixed Deposit calculator provides instant results regarding the returns on your FD. Moreover, it is a great way to compare the earnings for different tenors and make an informed decision.


Since Post Office FD rates are identical for investors across age groups, the Post Office FD calculator for senior citizens is also the same. 

Deposit Amount
Interest Rate
Interest Payout
Your Total Maturity Amount is
Your Total Maturity Amount is
Total Investment
Total Interest Earned

Post Office Fixed Deposit Interest Rate

Before you book a Post Office FD, you must know the Post Office FD rates and how they impact your earnings. A higher rate results in higher earnings and vice versa. FD Interest rates offered by the Post Office are revised periodically, and so it helps to be informed. 


Remember, the interest you earn is compounded quarterly but paid annually. The following table depicts the Post Office FD interest rate across different tenors:

Deposit Tenor

Post Office FD Interest Rate

1 year


2 years


3 years


5 years


Post Office FD Interest Earned Across Tenors

If you decide to make a deposit in your PO FD account, you can choose a tenor ranging from 1 year to 5 years. Subsequently, your earnings will also change as you increase the tenor of your deposit.


Given below is a table that gives you an estimate of your earnings for different tenures with an investment of ₹1 Lakh.

Deposit Tenor

Post Office FD Interest Rate

Interest Earned

Maturity Amount

1 year




2 years




3 years




5 years




Senior Citizens Post Office FD Interest Rates

The Post Office Fixed Deposit interest rates are the same for senior citizens as well as for citizens below the age of 60. So, the interest rates and payouts across tenors will be the same as shown above for deposits held by senior citizens.


post office IR

Compare Post Office FD Rates with Bank FD Rates

Before investing, compare the Post Office FD rate of interest with interest rates from other FD issuers. Use the Post Office Fixed Deposit calculator or any other FD calculator to get an idea about which FD offers the best returns. 


Here are the interest rates from some of the top FD offers:


FD interest rates (in p.a.)

Min. investment amount

Max. investment tenor

Post Office FD

6.8% - 7.5%


5 years

Bajaj Finance FD

7.11% - 8.35% (Additional 0.25% for senior citizens)


5 years

Mahindra Finance FD

7.05% - 8.05% (Additional 0.25% for senior citizens)


5 years

PNB Housing Finance FD

6.79% - 7.85% (Additional 0.25% for senior citizens)


10 years


3.00% - 6.75% (Additional 0.50% for senior citizens)


20 years


3.00% - 6.75%


10 years

AU Small Finance Bank

3.75% - 8.00% (Additional 0.50% for senior citizens)


10 years

YES Bank

3.25% - 7.75% (Additional 0.50% for senior citizens)


10 years

Features and Benefits of the Post Office Fixed Deposit Scheme

Low Minimum Investment Limit

You can start investing in a Post Office FD with as little as just ₹1,000. This makes postal fixed deposits extremely affordable investment options.

Tax Benefits

The amount that you invest in a Post Office FD for 5 years is also eligible for tax deductions. You can claim tax benefits of up to ₹1.5 Lakhs from your total taxable amount under Section 80C of the Income Tax Act, 1961. 

Attractive Interest Rates

The rates of interest on Post Office Fixed Deposits are periodically revised. Currently, the interest rates go up to 7.50% p.a., making them attractive investment avenues. 

No Limit on the Number of Accounts

There is no limit on the number of fixed deposit accounts that you can hold with the Post Office. So, you can plan to invest as per your requirements and book multiple FDs to ladder your investment. 

Premature Withdrawal

Premature withdrawal or closure of the Post Office FD is permissible after 6 months from the date of investment. Keep in mind that you will be charged a penalty for the same and your interest rates may also be revised. 

Easy Accessibility

The eligibility criteria for opening a Post Office FD account are quite relaxed. This makes the scheme more accessible to all.

Eligibility Criteria for a Post Office Fixed Deposit

The eligibility requirements for opening an FD account in the Post Office are simple. Here is a list of the categories of persons who are eligible to invest in a Post Office Fixed Deposit.  

  • A single adult (for a single account)

  • A guardian or a parent on behalf of a minor

  • Up to 3 adults (for a joint account)

  • A minor above the age of 10 (in their own name)

  • A guardian on behalf of a person of unsound mind

How is the Post Office FD Maturity Amount Calculated?

The formula given below helps calculate the maturity amount for your Post Office FD.


Maturity Value = Principal amount x (1 + r/n)(nt)


Here, r is the rate of interest, t is the investment tenor, and n is the number of times the interest is compounded annually. 


Here is an example to show you how this formula works. For instance, say you invest ₹5 Lakhs in a Post Office FD for a tenor of 3 years. 


Consider that the interest rate on this deposit is 5.8% per annum, and that the interest will be compounded on a quarterly basis. Putting all these values into the formula, we get the following results.


Maturity Value 

= Principal amount x (1 + r/n)(nt)

= ₹5,00,000 x (1 + 0.058/4)(4x3)

= ₹5,00,000 x (1 + 0.0145)12

= ₹5,00,000 x (1.0145)12

= ₹5,00,000 x 1.1886

= ₹5,94,285

Doing such a calculation once may be easy. However, doing multiple calculations to check different investment amounts and tenors can be quite cumbersome. Manual errors can affect your investment planning. 


This is why using a Post Office FD calculator ensures that your decision is based on accurate estimates. The digital tool is easy, quick, accurate, and free of cost. 

How to Open an FD in Post Office

1. Online Method

With digitisation, you can book a Post Office FD online in just a few clicks by following the steps given below.

  • Step 1: Visit the official post office e-banking website

  • Step 2: Log in to your account with your registered ID and password

  • Step 3: Navigate to the ‘Service Request’ tab under ‘General Services’

  • Step 4: Follow the instruction displayed on the screen

  • Step 5: Click on ‘New Request’

Your Post Office Fixed Deposit account will be activated once you transfer the investment amount.

2. Offline Method

To invest in a fixed deposit plan offered by the Indian Postal Department, you need to follow the steps outlined below. 

  • Step 1: Find the Post Office branch nearest to you

  • Step 2: Visit the branch in person and ask for the FD account opening form

  • Step 3: Fill in the form and attach any supporting documents and photographs that may be required

  • Step 4: Submit the form along with a cheque or Demand Draft for the sum that you wish to deposit

That’s all you need to do. Your FD account will then be opened, and your deposit will be made for the tenor chosen by you

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Documents Required to Open an FD in Post Office

To open an FD in any Post Office, you will have to submit the following documents along with the application form:  

  • Proof of address such as your Aadhaar, passport, driving license, or utility bills

  • Proof of identity such as your PAN, Aadhaar, voter ID, or passport

  • 2 passport-size photographs 

Different Types of Post Office Tax Saving Schemes

The 5-year Post Office FD qualifies for deduction u/s 80C up to an investment amount of ₹1.5 Lakhs. Aside from this, there are many other Post Office tax-saving schemes that you can consider for your investment portfolio. Here is a list of some such plans. 

  • Senior Citizens Savings Scheme (SCSS): SCSS is India Posts’ retirement benefits scheme for senior citizens that allows a maximum deposit of ₹30 Lakhs. 

  • National Savings Certificate (NSC): The NSC is a government-backed bond certificate that allows you to invest for a period of 5 years. You can start with an investment of just ₹1000. 

  • Sukanya Samriddhi Account: The Sukanya Samriddhi Account is a small savings account to cater to the financial needs of a girl child. It allows a minimum deposit of ₹250 and a maximum of ₹1.5 Lakhs in a financial year.

  • Public Provident Fund (PPF): PPF  is a long-term investment scheme that guarantees a fixed interest rate on the parked sum. It offers tax savings and a risk-free way to save for retirement. 

TDS on Post Office Fixed Deposit

Like other fixed deposits, your Post Office FD will also fall under the purview of tax deduction at source. TDS on Post Office FD will be deducted from the interest you earn.


TDS applies if the total annual interest you earn during the financial year exceeds ₹40,000 (₹50,000 if you are a senior citizen). The rate of tax deduction is as follows: 

  • 10% for resident Indian depositors

  • 20% if you have not provided your PAN details

  • 30% for non-resident Indian depositors 


However, if your total annual income does not exceed the basic exemption limit, TDS will not apply. However, you will need to submit Form 15G (or Form 15H if you are a senior citizen) to ensure that tax is not deducted at source. 

Premature Withdrawal of Post Office FD

Premature withdrawal of funds from your Post Office FD account is permitted only after 6 months from the date of deposit. In case of premature account closure, interest/penalty will apply as follows.

  • If the deposit is closed after 6 months but before 1 year from the date of deposit: Interest will be levied at the Post Office Savings Account interest rate 

  • If the deposit is closed after 1 year from the date of deposit: Interest will be levied at 2% less than the Post Office FD interest rate applicable for any completed years

Extension of Post Office Fixed Deposit account

You can also extend your Post Office Fixed Deposit investment for a tenor equal to the period for which you originally opened the deposit. The Post Office FD interest rate prevailing at the time of original maturity will be applicable on the extended deposit. 

Your Post Office fixed deposit account can be extended from the date of maturity within the prescribed period as listed below.

  • For 1-year deposits: Within 6 months of maturity

  • For 2-year deposits: Within 12 months of maturity

  • For 3-year and 5-year deposits: Within 18 months of maturity

Loan Against Post Office Fixed Deposit

As mentioned above, when you prematurely withdraw from your Post Office FD, your earnings reduce. This loss of interest income can affect your future goals.


However, you can avail a loan against your Post Office FD. Doing so will ensure that you do not lose out on your earnings. 


The interest rate for a loan against Post Office FD is generally lower than the market rates, making it an even better alternative. 


The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQs on Post Office Fixed Deposit Interest Rates

The Post Office FD interest rate for a tenor of 1 year is 6.8%.

The Post Office FD interest rate for a tenor of 1 year is 7.5%. This FD also allows you to enjoy a tax exemption.

The interest earned on an investment of ₹3 Lakhs in Post Office FD for a period of 5 years will be ₹1,34,984.

You can earn an interest of 7.5% on Post Office Term Deposit for a tenor of 5 years. The interest rate for a 5-year FD issued by the Post Office is generally the highest.

No, the interest earned on the Post Office 5-year FD is not tax-free but is taxed as per your tax slab. However, you can claim tax benefits of up to ₹1.5 Lakhs under Section 80C on your invested amount

Yes, the Post Office FD is considered to be safe as it is backed by the Government of India.

Yes, you can withdraw the funds from your Post Office FD prematurely. However, this is allowed only after 6 months from the date of deposit.

Yes, after the maturity of your POFD, you can extend your account for the same tenor for which you originally opened the account. You can extend the FD account from the date of maturity within the prescribed period. 


For 1-year FDs: Within 6 months of maturity. For 2-year FDs: Within 12 months of maturity. For 3-year and 5-year FDs: Within 18 months of maturity.

Yes, you can pledge your Post Office FD to avail of a loan. You can also transfer it as a security to the Reserve Bank of India, or any scheduled bank, co-operative society, co-operative bank, etc.

In case of the account holder’s demise, the deposit amount will be paid out to the nominee mentioned by the account holder. If there is more than one nominee, they will each receive the deposit in the proportion mentioned by the account holder. 

If nothing is mentioned by the account, then the proportion will be equal for all nominees. In case there is no nominee appointed, the account holder’s legal heir is entitled to receive the sum in the fixed deposit account.

There are different forms available for a Post Office FD plan. These include the form for opening your account, for extending the account, for premature closure of the account and for pledging the fixed deposit as a loan.

A Post Office FD calculator is an online tool that allows you to compute the earnings from your deposit over your preferred investment tenor. You just need to feed key details into the calculator. 

These details include the amount you wish to deposit, the tenor and the applicable interest rate. The Post Office Fixed Deposit Calculator will then display the interest you will earn and the maturity amount. 

You can claim a refund of the TDS deducted on your Post Office FD by filing your Income Tax Return on time. The due date for the same is July 31 of the relevant assessment year. 


To do this, visit the Income Tax website at https://www.incometax.gov.in/iec/foportal. Then, log into your account using your user ID (which is your PAN) and your password. 


Finally, select the ITR applicable to you and fill in the details required. Once done, submit your ITR online and verify your return promptly. The excess tax paid or deducted will be refunded to you within a reasonable period of time. 

The time taken for a TDS refund request to be processed can range from 3-6 months from the date of verification of your ITR. 

You can calculate the maturity amount from your Post Office fixed deposit using the formula shown below. 

Maturity Value = Principal amount x (1 + r/n)(nt)

Here, n denotes the number of times the interest is compounded annually, r is the rate of interest and t is the investment tenor. Alternatively, you can use a Post Office FD calculator to ensure accuracy and instant results.

The FD interest rates in Post Office FD plans are the same for senior citizens and for deposit account holders aged below 60 years of age. 


Currently, the rates of interest up to June 30, 2023, for 1-year fixed deposit are 6.8% per annum, and 2-year fixed deposit are 6.9% p.a. The interest rate for 3-year fixed deposit is 7.0% per annum and for a 5-year fixed deposit is 7.5% per annum.

You can invest in a Post Office FD plan with a minimum initial deposit of just ₹1,000 with no maximum limit. The deposit amount above ₹1,000 has to be in multiples of ₹100.

You can transfer your Post Office FD account from one branch to another by submitting a transfer application. Submit it either in the branch that you are transferring to or the branch that you are transferring from.

Yes, you can do so by downloading the form from the official India Post website and registering an account as a retail user.

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