Post Office FD Rates- Fixed Deposit Rates in Post Office for 2019

Postal services have been one of the most widely used services in India. Post office even gives the option of investing safely. Fixed deposit is a prevalent tool for investment, and the bank is not the only source providing this investment option. Post offices offer this service as well which is known as post office fixed deposit or POFD. Post office fixed deposits are a very convenient alternative to the fixed deposits offered by banks as Post Office fixed deposit rates do not change with market rates or inflation.

Since the Post Office FD rates are not susceptible to market rates, investors can earn a fixed guaranteed return for the tenure. Moreover, the individual obtains the interest at the end of the period along with the return.

Post Office Fixed Deposit Interest Rate

The tenure of POFD can range between 1 to 5 years with the Post Office FD interest rates ranging from 6.6% to 7.4% per annum. The rate increases with the number of years one chooses to apply. The post office deposit can be opened with a minimum of Rs. 200. There is no maximum upper limit. The table below displays the tenure with its respective rate of interest.


Post Office FD Rate (Annually)

1 Year

6.6 Percent

2 Years

6.7 Percent

3 Years

6.9 Percent

5 Years

7.4 Percent

However, the Post Office FD senior citizen interest rates are different than the interest rates by regular deposits. The interest rates on deposits made by senior citizens is 8.3% per annum. Further, details is given in the SCSS scheme below.

Post Office FD Benefits

Post office fixed deposits come with various benefits. Given below are some of its benefits.

  • As mentioned above, Post Office FD rates are not affected by market rates, and therefore give one a fixed rate.
  • POFD offers short and medium-term fixed deposits at competitive interest rates.
  • There is no limit to the number of FD accounts an individual can open.
  • An individual can invest an amount as low as Rs. 200, an option which is hardly offered by any other investment source.
  • There is no limit on the maximum amount that can be deposited.
  • On maturity, the account automatically renews for the same tenure it was booked initially.
  • Investments made within 5 years are eligible for tax benefits and deductions.
  • The rate increases with the number of years an individual chooses to apply for.
  • The account holder can withdraw the amount before the end of its maturity period. However, this is subject to specific terms and conditions laid by the post office.
  • One can convert the POFD account from single to joint account and vice versa.

How to Invest Post Office FD schemes?

There are many schemes one can avail in the POFD. To start investing in post office FD scheme, one needs to open a POFD account. Visit the nearest branch to fill out the FD opening form and provide the relevant original documents such as address proof and ID proof. Any individual can open the POFD account and can nominate a person while doing so. He/she can also nominate a person with an existing POFD account. The account can be opened by cheque or cash.

Moreover, the account can be opened in the name of a minor which shall be operated by the parent or the legal guardian. This account can be ported from one post office to another easily. But, NRIs cannot invest in the time deposit schemes offered by the post office. Once an individual opens the account, he/she can benefit from the POFD schemes. The various types of post office savings schemes are as follows:

Post office Savings account

The minimum balance which needs to be maintained in the account is Rs. 50. The feature includes benefits such as ATM card, cheque.

The interest rate offered: 4 %

Senior Citizen Savings Scheme (SCSS)

Scheme for Post Office FD senior citizen comes with a lock-in period of 5 years. Any interest received by the senior citizen from deposits in post office would be exempt up to Rs.50,000.

The interest rate offered: 8.3%

Tenure: 5 years lock-in

Maximum amount: Rs. 15 lakhs

Post office Time Deposit account (TD)

The interest rate offered: 6.6% to 7.6%

Tenure: 1 to 5 years

Minimum amount: Rs. 200

Post office Monthly Income account (MIS)

MIS scheme pays an assured rate of interest on a monthly basis.

The interest rate offered: 7.3%

Public Provident Fund Account (PPF)

This is a long-term investment scheme where one can avail tax exemptions.

The interest rate offered: 7.6%

Tenure: 5 years

National savings certificate (NSC)

This is a bond issued by the India post which can be purchased for a minimum amount of Rs. 100.

The interest rate offered: 7.6%

Kisan Vikas Patra (KVP)

In KVP, investment doubles up in 115 months.

Minimum amount: Rs.1000

Sukanya Samriddhi accounts (SSA)

This is a special savings scheme for the girl child which the parents or the child’s guardian can purchase.

The interest rate offered: 8.1%

Minimum annual amount: Rs.1,000

Maximum amount: Rs.1,50,000

Post Office FD Calculator

Calculating the amount gained at maturity can be somewhat complicated. But, this task can be made easy with the Post Office FD calculator. One can calculate the maturity value of an FD accurately in just seconds.

How to Calculate Post Office Fixed Deposit Interest Rate?

The best way to calculate the Post Office FD interest rates and the maturity amount quickly and correctly is by using the POFD Calculator. Enter details such as rate of interest, the amount invested, type of interest compounding frequency, and the tenure of investment into the Post Office FD calculator to get the results.

Through, the utilization of POFD is seen more in the rural areas, individuals from urban areas who are highly conservative regarding safety and risk involved in FD can invest in POFD as well because Post Office fixed deposit rates are not affected by market risks. While, sometimes POFDs provide higher interest rates than the bank FDs.