|Head Quarters||New Delhi|
|Listed on exchange as||NA|
|Tenure||Regular customers||Senior citizens|
A Post Office FD can be opened in any post office across India using online and offline methods-
1) Online Method
The Post Office Fixed Deposit account can be opened online by using internet banking-
2) Offline Method
One can visit the nearest India Post branch and collect the form for opening a new Post Office Fixed Deposit account. After submitting the copies of the necessary documents with completely filled-up forms, the post office administrators will guide you regarding the additional directions for the process.
The following people are eligible to operate a Postal fixed deposit-
NRIs, trusts, companies and other organisations, however, are not allowed to avail fixed deposit investments through Post Office.
Investors must furnish the following documents to deposit in the POTD scheme -
Moreover, the investor must provide details of a nominee for the FD. A witness must be present when he/she signs the investment papers as well.
The 5-year Post Office FD or National Savings Term Deposit qualifies for a tax deduction under section 80C. It offers a tax deduction of up to Rs 1,50,000 of the deposit.
Note that the post office fixed deposit interest will be taxable for the depositors. The interest is taxable for those taxpayers whose age is less than 60. Although, interest up to Rs 50,000 is entirely exempt from tax for senior citizens above the age of 60.
Loan against FD of India Post Office provides the loan up to 90-95% of the Fixed Deposit amount. The interest charged on loan against FDs are typically low and are around 2-3% higher than the Fixed Deposit interest rate.
An investor can withdraw after six months from the date of deposit. Before this period, no withdrawals can be made.
Note that if an investor makes a premature withdrawal after the expiry of 6 months but before 12 months, then interest will be payable for the completed months.
Any interest already paid to the depositor will be recovered from the deposit repayment amount and the interest payable on the withdrawal amount.
What is the highest interest rate Post office fixed deposit offers?
Currently, the highest interest rate offered by post office fixed deposit is 7.50% for 5 years’ tenure.
What is the minimum deposit required to open a post office fixed deposit account?
The minimum amount required to open a Post office FD account is Rs. 200.
Can we take a loan against Post Office FD?
No, this facility is not available in post offices to date.
What are the documents needed to open a fixed deposit account in a post office?
You should have the following documents to open a post office fixed deposit account: