Post Office FD Interest Rate 2025

Post Office Fixed Deposits (FDs) have long been a popular choice for risk-averse investors in India, offering the safety and security of government backing coupled with decent returns. As of March 2025, Post Office FD interest rates range from 6.90% to 7.50% per annum, depending on the deposit tenure.

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Information About Post Office Fixed Deposit (Time Deposit Account)

The basic features of a Post office fd interest rates account are mentioned below:

Features of Post Office FD Interest Rates	Details
FD Tenure	1, 2, 3, and 5 years
Rate of Interest	6.90% to 7.50%
Minimum Deposit Amount	Rs. 1,000
Interest Payment	Annually
Premature Withdrawal	It is allowed after 6 months
Payment Mode	Cheque / Cash
Facility of Nomination	Available

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Note: It is advised to use an FD calculator to get an estimate of returns that can be earned before making an investment decision.

Comparison Of Post Office FD Interest Rates 2025 With Indian Banks

BANKS	GENERAL CITIZENS	SENIOR CITIZEN
SBI FD Interest Rates	3.00% - 7.10%	3.50% - 7.60%
HDFC Bank FD Rates	3.00% - 7.25%	3.50% - 7.75%
ICICI Bank FD Rates	3.00% - 7.10%	3.50% - 7.60%
Axis Bank FD Rates	3.50% - 7.10%	3.50% - 7.85%
PNB FD Interest Rates	3.50% - 7.25%	4.00% - 7.75%
Yes Bank FD Rates	3.25% - 7.75%	3.75% - 8.25%
Kotak Mahindra FD Rates	2.75% - 7.25%	3.25% - 7.75%
Bandhan Bank FD Rates	3.00% - 5.85%	3.75% - 8.50%
Union Bank of India FD Rates	3.00% - 6.70%	3.50% - 7.20%
Indusind Bank FD Rates	3.50% - 7.50%	4.25% - 8.25%
Canara Bank FD Rates	4.00% - 7.25%	4.00% - 7.75%
Bank of Baroda FD Rates	3.00% - 7.25%	3.50% - 7.75%
IDFC Bank FD Rates	3.50% - 7.25%	4.00% - 7.75%
Indian Bank FD Rates	2.90% - 5.15%	3.40% - 5.65%
DBS Bank FD Rates	2.50% - 5.50%	2.50% - 5.50%
UCO Bank FD Rates	2.55% - 5.05%	3.80% - 6.30%
Bank of India FD Rates	2.85% - 5.35%	3.00% - 6.50%
IDBI Bank FD Rates	2.90% - 5.30%	3.40% - 5.90%
Central Bank of India FD Rates	2.75% - 5.15%	3.25% - 5.65%

What are the Features and Benefits of the Post Office FD Interest Rate Scheme?

Below are the features and benefits of the Post Office FD Interest rate:

Flexible Tenure

Post office FD interest rate offers tenures ranging from 1 to 5 years.
Multiple Accounts

Depositors can open multiple FD accounts in any post office.
Minors' Access

Minors aged 10 and above can open and manage accounts, with conversion options at 18.
Low Minimum Deposit

A minimum deposit of Rs. 200 is required to open a post office FD.
No Maximum Limit

There is no cap on the maximum deposit amount.
Joint Accounts

Joint accounts can be opened by two adults, with easy conversion options.
Tax Benefits

Deposits for 5 years qualify for tax benefits under Section 80C of the Income Tax Act.
Transferability

Post office FD Interest Rate accounts can be easily transferred between post offices.
Automatic Renewal

Accounts are renewed automatically on maturity, maintaining the same tenure.
Exclusion for NRIs

NRI depositors cannot open fixed deposit accounts in Indian post offices.
Nomination Facility

Nomination can be done at account opening or even after.
Payment Flexibility

Accounts can be opened with cash or cheque, with the cheque date as the account opening date.

Eligibility to Open a Post Office FD Interest Rate Account

To open a Post Office Fixed Deposit (FD) account, you must meet the following eligibility criteria:

Any Indian individual can apply.
Minors above 10 years of age can open an account in their name.
A guardian can open an account on behalf of a minor or a person of unsound mind.

Not Eligible:

NRIs, trusts, and companies are not permitted to open a Post Office FD account.

Documents Required to Open a Post Office FD

You need to submit the following documents to open an FD account at the post office:

Proof of Identity (Any one of the following):
- Aadhaar Card
- Voter ID Card
- PAN Card
- Driving License
- Passport
Proof of Address (Any one of the following):
- Aadhaar Card
- Utility bills (electricity, water, gas)
- Ration Card

What are the Different Types of Post Office FD Schemes?

National Savings Time Deposit Account

The National Savings Time Deposit Account (TD) is a fixed deposit scheme designed for individuals looking for guaranteed returns with flexible tenure options.

Key Features
- Tenure Options: Available for 1, 2, 3, or 5 years, allowing investors to align their savings with financial goals.
- Interest Rates: Government-set interest rates are revised periodically, ensuring competitive returns similar to bank FDs.
- Interest Payment: Interest is credited annually but compounded quarterly. If not withdrawn on time, no additional interest is added.
Premature Withdrawal:
- Allowed after 6 months from the deposit date.
- If a 1-year FD is withdrawn early (after 6 months), it earns interest at the Post Office Savings Account rate.
- For 2, 3, or 5-year FDs, premature withdrawal after 1 year results in a 2% lower interest rate for completed years.
Investment Limits:
- Minimum deposit: ₹1,000
- No maximum investment limit
Tax Benefits:
- The 5-year deposit qualifies for tax deduction under Section 80C of the Income Tax Act.
National Savings Monthly Income Account

The National Savings Monthly Income Account (MIS) is a great option for those looking for a regular monthly income from their investment.

Key Features

Investment Limits:
- Minimum deposit: ₹1,000
- Maximum for an individual: ₹4.5 lakh
- Maximum for joint accounts: ₹9 lakh
- Separate limit applies for accounts opened by guardians on behalf of minors.
Interest Payment:
- Interest is paid monthly from the account opening date until maturity.
- Unclaimed interest does not earn additional interest.
- Interest earnings are taxable.
Tenure:
- Fixed tenure of 5 years.
- Can be extended for another 5 years after maturity.
Premature Withdrawal:
- Allowed after 1 year from the deposit date.
- If closed between 1-3 years: 2% of the deposit is deducted.
- If closed between 3-5 years: 1% of the deposit is deducted.

What is the Process of Opening a Post Office FD Account Online and Offline?

Online
- Download the India Post Mobile Banking app from the Google Play Store.
- Access the app by entering your login credentials.
- Navigate to the 'Requests' tab within the app.
- Choose 'Open POFD Account' from the options.
- Complete the necessary details in the application and submit it.
Offline
- Head to your closest Post Office branch.
- The application form for Post Office Fixed Deposit.
- Complete the essential details and attach the required documents.
- Submit the filled application form along with the deposit amount.

What are the TDS Implications and Taxation for Post Office FD Interest Rate Account?

A significant advantage of placing funds in a post office fixed deposit is the absence of Tax Deducted at Source (TDS) on the interest accrued. When filing for Income Tax Return (ITR), individuals have the option to include their post office fixed deposit investments to qualify for deductions under section 80C of the Income Tax Act, 1961. The maximum deduction limit under this section of the IT Act, 1961 is capped at Rs. 1.5 lakh per financial year.

Post Office FD Calculator

Total Investment

₹

₹500 ₹30L

Enter Total Investment

Rate of Interest (Yearly)

%

1% 15%

Rate of Interest (Yearly)

Time Period

Years

1 Year 15 Years

Enter Time Period

Total Investment

Interest Earned

Maturity Amount

Post Office FD Interest Rates – FAQs

What is the eligibility criteria for opening a post office FD account?
- Any resident of India can open this either individually or jointly.
- Minors are also eligible to open a post office FD account. However, it should be under the guidance of some legal guardian.
- Companies, trusts, NRIs, and other organizations are not eligible to avail of the benefits or open an FD account.
How can I calculate my post office fd returns?

You can use the Post Office FD Calculator. It is an online tool designed to help users determine the maturity amount of their Fixed Deposit (FD) investments in the Post Office.
What are the tax benefits for Post Office FDs?
- Tax-free interest for low-income groups.
- No TDS under Rs. 40,000/Rs. 50,000 interest (regular/senior).
- Claim deductions under section 80C (up to Rs. 1.5 Lakhs).
- Tax benefits vary with tax law changes.
What is the procedure for Premature Withdrawal for Post Office FD?
- Visit the local Post Office.
- Fill Form-1 with details.
- Deposit amount & tenure chosen.
- Submit KYC docs, payment.
- Get a Deposit Certificate.
- Premature withdrawal via Form-4.
- No withdrawal in the 1st 6 months.
- After 6 months but within 12, partial interest paid.
- Rates vary with tenure.
Is Post Office FD 100% safe?

The sovereign guarantee provided by the Government of India makes post office fixed deposits (FDs) a favored choice for individuals seeking a secure investment opportunity. This guarantee ensures the safety of the investment, making post office FDs a reliable avenue for risk-averse investors.
What is the interest rate for 1 lakh FD for 3 years with the existing interest rate in the post office?

Interest Earned: Rs. 22.5 K

Maturity Amount: Rs. 1.23 L
What are the maximum interest rates offered on the FDs of the Post Office?

Currently, the Post Office FDs provide a maximum interest of 7.50% for a tenure of five years.
Which is better Post Office FD or Bank FD?

The Post Office FDs are also called Small Savings Scheme and they offer comparatively better returns and rates than deposits of banks.
Which scheme gives the highest interest rate?

FD scheme provides the highest post office interest rate than Bank FD interest. It is suggested to use FD calculator online tool to analyse the returns on FD.
Does the Post Office provide loans?

Post Office allows its customers to get loans against their FDs value.