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Post Office Fixed Deposit: Get FD done in the post office, you will get attractive interest rates and all these facilities, know details

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Post Office Fixed Deposit: Get FD done in the post office, you will get attractive interest rates and all these facilities, know details

Post Office Time Deposit: Post Office Time Deposit is like an FD in a bank. The special thing is that the citizen investing in this scheme gets a guaranteed return after a fixed period. The minimum amount to open this account is Rs 1,000 while there is no maximum limit. Apart from this, income tax exemption and premature withdrawal facility is also available on investment.


New Delhi: If you are thinking of getting an FD in the post office, then there can be no better option than post office time deposit. POTD is also known as Post Office Fixed Deposit. It is like an FD in a bank. The special thing is that the citizen investing in this scheme gets a guaranteed return after a fixed period. Any Indian citizen can open a post office time deposit account. It can be opened both by cash and cheque. Whereas the date of check is recorded as the date of account opening.

The minimum amount to open this account is Rs 1,000 while there is no maximum limit. This account can also be opened jointly by a maximum of three persons. At the same time, any person can open multiple accounts without any restrictions. Apart from this, he also has the option to transfer his account from one post office to another within the country.

Lock in period

Any person can invest his money through this account for a period of one, two, three or five years. At the same time, the period of the account can also be extended by applying to the post office.

Rate of Interest on Post Office Fixed Deposit

The interest rate under this scheme is revised regularly and is calculated on a quarterly basis. Whereas the payment is made on an annual basis. The new revised rates for Post Office Time Deposits as on Q2 of FY 2021-22 are as follows:

  • 1 year – 5.5%
  • 2 years – 5.5%
  • 3 years – 5.5%
  • 5 years – 6.7%

Income tax exemption on investment

Depositors investing in this scheme can also claim income tax exemption. Under Section 80C of the Income Tax Act, 1961, a deduction of up to Rs 1.5 lakh can be claimed. However, this exemption is available only for a lock-in period of five years.

Premature withdrawal condition

In Post Office Time Deposit, a person is not allowed to withdraw the deposited amount before 6 months. If the amount is withdrawn between six months and 12 months, then the interest earned on it will be like interest on savings account. This post office plan is very good for those people who do not want to invest their money in other risky schemes.

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