Post Office Special FD Schemes

India Post, which operates our country's post offices, offers post office FD interest rates ranging from 5.50 to 6.70% p.a. for tenures ranging from one year to five years.

For the general public - the interest rate on the Post Office Tax Saving FD is 6.70% p.a. Because they are guaranteed by the Union Ministry of Finance, these FD schemes provide the highest level of capital protection and income predictability to depositors. 

These FD plans, like other modest savings schemes, are run by the National Savings Institute, which is part of the Union Ministry of Finance's Department of Economic Affairs. Post Office Fixed Deposits (PO FD) are also known as National Savings Time Deposit as a result.

Post Office Fixed Deposit Plan

The interest rate on the post office FDs is determined for each tenure. The post office provides a variety of fixed deposit programs from which to choose.

This is the list of few of the best deposit schemes in the post office-

a) Time Deposit of the Post Office

A post office time deposit account is a fixed deposit account that any eligible individual can open and manage. It functions similarly to any other fixed deposit account in that the individual deposits a specified amount of money into the account once and gets interested in the amount placed until the policy's term expires.

The account has a five-year investing period. Premature account closure is permitted.

b) Senior Citizen

A senior citizens savings scheme is one that is specifically created for people over the age of 60. The account has a five-year maturity period. Deposits can only be made once and must be made in multiples of Rs.1,000, with a maximum deposit of Rs.15 lakh.

c) PF

The Public Provident Fund, also known as the PPF, is one of the best-fixed deposit programs given by post offices. Deposits can be made in either a flat sum or in 12 monthly installments. The current interest rate on the fixed deposit account is 7.1%. The account cannot be closed prematurely.

d) Monthly Income

A monthly income plan (MIS) is one of the fixed deposit schemes offered by India's post offices. Any eligible person can open an account at a recognized post office. The deposit must be made in multiples of Rs.1,000, with a maximum investment of Rs.4.5 lakh. This account has a 5-year maturity period.

Characteristics of FDs from the Post Office

Post Office Special FD Schemes have the following characteristics:

• You can open an unlimited number of FD accounts at different post office branches.
• The term of the FD account ranges from one to five years.
• This account is also open to minors aged ten and up.
• Accounts can also be opened jointly.
• Accounts can be moved from one post office to another.
• There is a nomination option available.
• The account can be opened with either a check or cash.
• There is an option for automatic renewal.

The Post Office FD Interest Rates of 2023

Here is the table to show the post office high-interest scheme-

Benefits of the FD Schemes from the Post Office

The following are the advantages of Post Office Special FD schemes-

• Post office deposit schemes are government-backed and come with guaranteed additions.
• Liquidity - After the lock-in period, you might make a premature withdrawal.
• Because they provide total returns on maturity, these are risk-free investments.
• Section 80C of the Income Tax Act, 1961 lets you claim a tax deduction of up to Rs. 1,50,000.

Who is Eligible for a Fixed Deposit from the Post Office?

You can open a Post Office FD account by filling out Form-1 and sending it to the Post Office of India. You can apply in person at any Post Office branch or online through the Post Office's website.

Remember to meet the following eligibility requirements before opening an account:

• An account can be opened by a single adult.
• A joint account can have up to three joint account holders.
• A minor more than the age of ten can also open an account in his or her own name.
• A minor or an individual person who is of unsound mind can have a guardian open an account on their behalf.

Documents Required 

To open a Post Office account and complete KYC, you must submit the following documents:

• A passport, Aadhaar Card, Voter ID, Driving Address, and PAN Card are all acceptable forms of identification.
• Address Proof- Utility bills such as power bills, passports, driving licenses, and so on.
• NREGA issued a job card that was signed by a State Government officer.
• The National Population Register sent you a letter with your name and Address on it.
• Photographs in passport size 2.

FAQs

Q1. What is the best FD plan in the post office?

Each FD plan from the post office has been made to suit the different needs of the people.

Q2. I have an eight-year-old child. Can I set up a post office FD in his or her name?

No, your child must be at least ten years old to open a post office FD in their name. You can open an FD account in the child's name once they are eligible.

Q3. Is it possible to remove funds from an FD account early?

No, you can only remove money from your account before six months have passed since you opened the fixed deposit account.

Q4. Which is preferable, a bank FD or a post office FD?

Bank FDs and Post Office FDs are nearly identical. However, there are several key differences between the two.

Bank FDs are managed by individual banks. Hence interest rates differ by bank. Post Office FD is run by post offices, and interest rates are modified at the beginning of each quarter. Bank FDs are available for terms ranging from four days to ten years. POFDs are offered for one, two, three, or five years. Post office FDs can only be opened in person at a post office or a bank, whereas bank FDs can be created online. 

Furthermore, post office FDs are more secure because they are backed by the government.

Q5. Can I extend the due date or maturity of my FD account?

The maximum tenure available is five years. However, you can file a request to extend the duration of your FD account from the maturity date when you start the account.

Q6. What is the maximum deposit amount for a post office time deposit account?

A Post Office fixed deposit has no maximum deposit limit. The initial deposit is Rs 1,000. Furthermore, the deposit must be in multiples of Rs 100.