A Post Office fixed deposit, also known as a Post Office term deposit, is an FD issued by the Indian Postal Services. Post Office FDs are backed by the sovereign guarantee of the Government of India.
Fixed Deposit is one of the safest investment avenues offered by banks, Non-Banking Financial Companies (NBFCs) and post offices. Post Office Fixed Deposit, also known as Post Office Term Deposits, are investment instruments offered by the Indian Postal Services. It is a preferred investment option for those looking for a safe investment avenue, these post office FDs are backed by the sovereign guarantee of the Government of India.
| Particulars | Details |
| Tenure | 1, 2, 3 and 5 years |
| Minimum Deposit Amount | Rs. 1,000 |
| Interest Rates | 5.5% – 6.7% |
| Interest Payment | Annually |
| Mode of Payment | Cash/Cheque |
| Premature Withdrawal | Allowed after 6 months* |
| Nomination Facility | Available |
*If account is closed between 6 to 12 months from the date of opening, then Post Office Savings A/c rates will be applicable.
Post Office Fixed Deposit interest rates are decided by the Government of India (every quarter) under Small Saving Schemes. These rates are in turn determined as per the performance of government securities/bills. A Post Office fixed deposit with a tenor of 5 years has an interest rate mark-up of 25 bps over the yield of comparable government securities.
| Tenor (years) | Post Office FD Interest Rates |
|---|---|
| 1 year | 5.5% |
| 2 years | 5.5% |
| 3 years | 5.5% |
| 5 years | 6.7% |
Here’s a comparison of latest FD interest rates offered by post offices, with FD rates offered by Bajaj Finance Limited.
| Tenor (years) | Post Office FD Interest Rates | Bajaj Finance FD Interest Rates |
| 1 year | 5.5% | 5.65% |
| 2 year | 5.5% | 6.10% |
| 3 year | 5.5% | 6.50% |
| 5 year | 6.7% | 6.50% |
Bajaj Finance offers additional 0.10% higher FD interest rates on investing in an end-to-end online FD for non-senior citizens. This rate benefit is not applicable for senior citizens, as they can get 0.25% additional returns on their deposit.
| Interest Rate | Ranging from 5.65% to 6.75% |
|---|---|
| Minimum Tenor | 1 Year |
| Maximum Tenor | 5 Years |
| Deposit Amount | Minimum deposit of Rs. 25,000 |
| Application Process | 100% online process |
| Online Payment Options | Netbanking and UPI |
While you can think of redirecting the interest earned from Post Office FD into various other post office schemes, you should also consider alternative options such as high-yielding company FDs offering a similar guarantee with zero to low risk.
Even though post office FD may offer a higher interest rate as compared to bank FD, it cannot match the interest rate offered by Company FDs. You can ensure maximum returns with company FDs which are guaranteed by well-financed and liquid companies like Bajaj Finance. Let us see how you can benefit even further with a Bajaj Finance FD.
Bajaj Finance also accepts deposits from NRIs, and is rated high on the safety and stability ranking, which makes it one of the best investment options for those with lower risk appetite. To help you compare the features of Post Office Fixed Deposit and Bajaj Finance Fixed Deposit, here’s a table detailing the differences between the two:
| FEATURE | POST OFFICE FD | BAJAJ FINANCE FD |
| High-Interest Rate | No | Yes |
| Quarterly Interest Rate Revision | Yes | No |
| Flexible Premature Withdrawal | No | Yes |
| Online Account Management | No | Yes |
| Multi-deposit Facility | No | Yes |
| Auto-Renewal Facility | Only at CBS-enabled branches | Yes |
| NRI FD | No | Yes |
With 2.35 lakh customers and a total deposit book size of more than 20,000+ crores, you can trust a Bajaj Finance FD to give you maximum returns at little to no risk. Bajaj Finance offers higher FD interest rates to senior citizens and those applying online.
Documents Required to Open FD Account
Earn UP TO 6.75%* on Fixed Deposit
