The post office fixed deposit (POFD) also known as post office time deposit is great alternatives to the banks fixed deposits. The post office fixed deposit schemes offered by Indian Postal Service provides guaranteed return to the individual and helps them to accumulate wealth for a specific period of time. Depending on the maturity tenure as chosen by the investors, the Post Office Fixed Deposits offers attractive returns on investment. Let’s read further to know in detail about Post Office Fixed Deposit scheme.
Let’s take a look at the benefits offered by Post Office Fixed Deposit.
The interest rate of POFD is revised by the government of India on quarterly basis of the final year. The tenure of these scheme ranges between 1 year and 5 years. Let’s take a look at the post office fixed deposit interest rate.
|Period||Interest Rate for Q4 of FY 2020-21*|
*Please note that the interest rate on post office fixed deposit remains the same for senior citizens as well as for regular customers.
Any Indian resident can open an individual or joint post office time deposit account. Minors are also eligible to invest in post office fixed deposit scheme, managed by their legal guardian. However, NRIs, companies, trust are not eligible to invest in Post Office Fixed Deposit account.
These are the documents that should be kept handy while opening post office FD account.
Also, the subscriber must provide the detail of the beneficiary for the FD. It is also important for subscriber to present a witness while signing the investment paper.
An individual can use either online or offline method to open Post office fixed Deposit or time deposit account.
Read Also: Post Office MIS Calculator
The post office FD schemes offer the facility of premature withdrawal. However, before making an premature withdrawal, here are some of the aspects that should be kept in mind.