Post Office Fixed Deposit (FD) Account: How It Works, Interest Rates, Tax Benefits, Other Details

Post office time deposit (TD) or Fixed Deposit (FD) account can be opened by cash or cheque.

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post office savings scheme

India Post, the postal network of the country, offers several savings schemes for small investors. One popular savings scheme offered by India Post is the Time Deposit (TD) or Fixed Deposit (FD) account. In a post office fixed deposit (FD), one can deposit a lump sum of money for a specific period and avail of features like guaranteed returns and choice of interest payout. Post office time deposit (TD) or Fixed Deposit (FD) account offers interest rates across four maturities: one year, two years, three years, and five years, noted India Post on it’s official website-

Here are 10 things to know about Post office Fixed Deposit (FD) account:

  1. Post office time deposit (TD) or Fixed Deposit (FD) account can be opened by cash or cheque.
  2. The minimum amount that one requires to open a fixed deposit with the post office is Rs.200. There is no maximum limit available. 
3.Interest is payable annually but is calculated quarterly. This account offers interest rates across four maturities. The following FD interest rates are applicable on deposits according to India Post’s official website –
Period Rate
1yr.A/c 6.90%
2yr.A/c 7.0%
3yr.A/c 7.20%
5yr.A/c 7.8%
  1. The investment under 5 years fixed deposit qualifies for the benefit of Section 80C of the Income Tax Act, 1961, mentioned India Post.
  2. Nomination facility is available at the time of opening and also after opening of account.
  3. Account can be transferred from one post office to another.
  4. Any number of accounts can be opened in any post office.
  5. Account can be opened in the name of minor and a minor of 10 years and above age can alos open and operate the account. However, minor after attaining majority has to apply for conversion of the account in his name
  6. Joint FD account can be opened by two adults. 
  7. Single account can also be converted into joint and vice versa, noted India Post.

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