Post Office Fixed Deposit | ROI 2023 | Features | Online

Post Office Fixed Deposit 2021

What is Post Office Fixed Deposit?


The post office Fixed Deposit (FD), also known as ‘National Savings Time Deposit Account(TD)’ is a convenient alternative to the fixed deposits provided by banks.
Through this fixed deposit plan that is offered by the Indian Postal Services, an individual can earn a guaranteed return on the money deposited for a fixed period of time.
These are backed by the Government and hence there should be no difficulty in getting your maturity and principal amount, even for a slightly longer duration.
The five-year deposits quality for tax exemption under Section 80C of the IT Act 1961, though the interest earned is fully taxable under the hands of investors.

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To open an FD account with any post office in India, a person should be any of the following:
A single adult.
Joint Account (up to 3 adults).
A guardian on behalf of a minor (a minor above 10 years in his own name).

Also Read How to Open NPS Account in Post-Office?

Features of Post Office Fixed Deposit

  1. Deposit Limit
    FD account can be opened with a minimum of Rs 1000/- and in multiple of Rs 100/-.
    No maximum limit for investment.
    Interest shall be payable annually, No extra interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
    The annual interest may be credited to the savings account of the holder by submitting an application.
  2. Extension of Account
    On maturity, the depositor may further extend the FD account for another tenure for which the account was initially opened.
    FD account can be extended from the date of maturity within the following prescribed period.
    1 year FD = within 6 months of maturity.
    2-year FD = within 12 months of maturity.
    3 or 5 year FD = within 18 months of maturity.
    At the time of opening of FD, account depositors can submit a request for an extension of the account from the date of maturity.
    FD account can be extended after maturity by submitting the prescribed application form at the concerned Post Office along with the passbook.
  3. Maturity tenure
    The deposit amount shall be repayable after the expiry of 1 year, 2 years, 3 years, and 5 years from the date of opening FD.
  4. Tax Benefit
    The investment under a 5-year FD qualifies for the benefit of section 80C of the Income Tax Act, 1961.
  5. Nomination Facility
    A nomination Facility is available for the same.
  6. Loan
    Loan facility is not available.
  7. Type of Accounts
    There shall be four categories of FD accounts, namely, One year, Two years, Three years, and Five-year accounts in which a deposit may be made for a period of 1 year, 2 years, 3 years, and 5 years respectively.

Premature Withdrawals


Premature closure of an FD account shall be allowed on an application by the account holder in Form-4, subject to the following terms and conditions, namely.

  1. No deposit shall be withdrawn before the expiry of 6 months from the date of deposit.
  2. Where a deposit in a 1-year, 2-year, 3-year or 5-year account is withdrawn prematurely after 6 months, but before the expiry of 1 year from the date of deposit, interest shall be payable to the FD account holder at the rate applicable to PO Savings Account for the completed months.
  3. If a 5 year FD account is closed after 4 years from the date of deposit, the rate admissible for 3 year FD account shall be applicable for the calculation of interest.
  4. FD account can be closed prematurely by submitting the prescribed application form with pass book at the concerned Post Office.

Also Read Post Office Savings Account | Online | Interest Rate | Features |

Interest Rates on Post Office Fixed Deposit

1 Year Time Deposit6.9 (Annual Interest ₹708 for ₹10,000/-)Quarterly
2 Year Time Deposit​​7.0 (Annual Interest ₹719 for ₹10,000/-)Quarterly
3 Year Time Deposit​​7.0 (Annual Interest ₹719 for ₹10,000/-)Quarterly
5 Year Time Deposit7.5 (Annual Interest ₹771 for ₹10,000/-)Quarterly
  • Interest shall be compounded every quarter and payable to the FD account holder at the end of each year during the period of deposit.
  • The rate applicable on the date of opening of the FD account shall apply till maturity.
  • The interest shall be payable annually and the year shall be calculated from the date on which the FD account is opened.
  • If the date of payment of interest falls on a nonworking day or national holidays, the payment shall be deemed to be due on the working day immediately preceding.
  • The annual interest may be credited to the PO savings account of the account holder at his option.

Post Office Interest Rates on FD for Senior Citizens


PO FD schemes do not offer any extra interest to senior citizens people.
Hence, the interest earnings on a particular sum are the same regardless of whether the investor is over or under 60 years of age.

Also Read Senior Citizen: Top 4 Risk-Free Saving Schemes with Best Comparison


  • An account can be opened offline or online via Post Office Net-banking.
  • TDS (Tax Deducted at Source) is not charged on the interest earned.
  • Deposits made for Five years qualify for tax deductions from gross salary when filing ITR (under section 80C for up to Rs 1.5 lakh/FY).
  • The deposit can be made individually or jointly.
  • Guaranteed by the Government, thus investors enjoy the highest level of security.
  • Easy transfer from one PO to another.
  • Minors can open the FD account under valid guardianship.
  • More than one FD account can be opened in any post office.
  • One can add a nominee even after opening the FD account.
  • since it is a nonprofit making organization, the main focus is social welfare and this is the unique selling proposition of the National Savings Time Deposit Account (TD).

Documents Required

Proof of IdentityAadhaar card, Voter’s ID card, Pan Card, etc.
Proof of AddressAadhaar card, Electricity bill, Water bill, Ration card, etc.
Photographs2 recent passport-sized photographs

How to Open a Post Office Fixed Deposit?


You can open a PO FD in any post office across India using both online/offline Modes. Both the modes are discussed below.



To offline open an FD account, the following points must be considered.

  • Download the Registration form & fill required mandatory fields.
  • Collect the needed documents and visit any nearby post office branch of India Post.
  • Submit copies of all the mandatory documents along with a duly filled-up application form.
  • On the successful opening of FD, make sure to take the receipt for future references.

Download Form



Visit your PO branch, fill the pre-printed application form, and submit it along with the required documents. Your Department of Post (DOP) internet banking will get activated from the next working day.

1: Log in to Post Office e-banking using your registered User ID and password.
2: Go to General Services then click on the ‘Service Request’ option.
3: Follow the on-screen directions and click on the ‘New Request’ option to initiate the POFD or TD opening request.

Post Office has been providing access to net banking services to its customers since 2018, under which amounts can be transferred easily within varied post offices.