Post Office FD Interest Rate 2024

Post Office FD interest rates in India 2024 - Find latest post office Fixed Deposit interest rates, features and benefits, and scheme details online.
Post Office FD rates
4 mins
1 June 2024

Fixed deposit is one of the safest investment avenues offered by banks, Non-Banking Financial Companies (NBFCs), and post offices. A post office fixed deposit, also known as a post office term deposit, is a fixed deposit issued by the Indian postal services. Post office fixed deposits are backed by the sovereign guarantee of the Government of India. The post office FD interest rates range from 6.90% p.a. – 7.50% p.a. for tenures ranging from 1 year to 5 years, offering investors stable growth.

Due to its backing by a sovereign guarantee provided by the Union Ministry of Finance, these FD schemes provide the highest level of capital protection and income predictability for depositors. These FD programs are run by the National Savings Institute, which is a division of the Department of Economic Affairs within the Union Ministry of Finance, just like other modest savings programs. Post Office Fixed Deposits (PO FD) are also referred to as National Savings Time Deposits as a result.

Pro tip

Enjoy higher interest rate with Bajaj Finance Digital FD. Unlock returns of up to 8.85% p.a. by investing for 42 months via our website and app.

Post Office FD Rate 2024

Post office FD is a preferred investment option for a safe investment avenue. These post office FDs are backed by the sovereign guarantee of the Government of India.

Post office offers FD interest rate ranges between 6.90% – 7.50% p.a. for a tenure of 1 year to 5 years. The Post Office FD interest rate on tax saving FD is up to 7.50% p.a. for general citizens.

The below-mentioned table shows the updated Post Office FD interest rates 2024:

Particulars

Details

Tenure

1, 2, 3 and 5 years

Minimum deposit amount

Rs. 1,000

Interest rates

6.90-7.50% p.a.

Interest payment

Annually

Mode of payment

Cash/ cheque

Premature withdrawal

Allowed after 6 months*

Nomination facility

Available


All interest rates shown above are as on 1 June 2024. Interest rates from 1 January 2024 to 31 March 2024 Disclaimer: Bajaj Finserv refrains from endorsing, rating, or recommending any specific insurer or insurance product provided by insurers.

Post Office Fixed Deposit interest rates 2024

The Government of India (every quarter) decides post office fixed deposit interest rates 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 tenure of 5 years has an interest rate mark-up of 25 bps over the yield of comparable government securities.

Note: All interest rates shown below are as on 1 June 2024. Interest rates from 1 January 2024 to 31 March 2024. The below table shows the updated post office FD interest rates for 2024 (January 1, 2024, to March 31, 2024)

Tenure (years) Post office FD interest rates
1 year up to 6.90% p.a.
2 years up to 7.00% p.a.
3 years up to 7.10% p.a.
5 years up to 7.50% p.a.


If you open a fixed deposit with the post office for a tenure of 5 years, you will be eligible to claim tax benefits under Section 80C of the Income Tax Act, 1961.

Here is a comparison of the latest FD interest rates post offices against those offered by Bajaj Finance Limited.

Tenure (years) Post office FD interest rates Bajaj Finance FD interest rates
1 year up to 6.90% p.a.
up to 7.40% p.a.
2 years up to 7.00% p.a.
up to 7.80% p.a.
3 years up to 7.10% p.a. up to 8.10% p.a.
5 years up to 7.50% p.a. up to 8.10% p.a.


Senior citizens can get additional rate benefits of up to 0.40% p.a. Check the return you will get on Bajaj Finance Fixed Deposit with an FD interest calculator.

How to invest in Post Office FD?

You can invest in Post Office Fixed Deposit (FD) using either of the following methods:

Online Method:

  1. Download the India Post Mobile Banking app from Google Play Store.
  2. Log in to the app using your credentials.
  3. Click on the ‘Requests’ tab.
  4. Select ‘Open POFD Account’.
  5. Fill in the required details and submit the application.

Offline Method:

  1. Visit your nearest Post Office branch.
  2. Collect the Post Office FD application form.
  3. Fill in the required details and attach the necessary documents.
  4. Submit the application form along with the deposit amount.

Eligibility to Open a Post Office FD Account

Here are the eligibility criteria to open a Post Office Fixed Deposit (FD) account:

  • Any Individual.
  • A minor above 10 years of age on his/her name.
  • A guardian on behalf of a minor or a person of unsound mind.
  • NRIs, trusts, companies are not allowed to open post office FD account.

Documents Required to Open Post Office FD

To open a Post Office Fixed Deposit (FD) account, you will need to provide the following documents:

  • Proof of Identity: Aadhaar card, Voter ID Card, PAN Card, Driving License, Passport, etc.
  • Proof of Address: Aadhaar card, Utility bills (such as electricity bill, water bill), Ration Card, etc.

Types of Post Office FD Schemes

1. National Savings Time Deposit Account

National Savings Time Deposit Account is a fixed deposit scheme offered by the Indian Post Office. It is designed for investors looking for a secure investment avenue with guaranteed returns. Here are the key features of this scheme:

  • Tenure Options: This scheme offers flexible tenure options, typically ranging from 1 year to 5 years. Investors can choose the tenure that best aligns with their financial goals.
  • Interest Rates: The interest rates for National Savings Time Deposit Accounts are set by the government and are subject to periodic revisions. The rates are competitive and often similar to those offered by banks for their fixed deposits.
  • Interest Payment: Interest on a Post Office Fixed Deposit account is credited annually but compounded quarterly. If the account holder does not withdraw the interest on the due date, no further interest is added to the interest amount.
  • Premature Withdrawal: Any deposit in a Post Office Fixed Deposit account can only be withdrawn after a minimum of 6 months from the deposit date. The following conditions apply for account closure:
    • If a 1-year Post Office Fixed Deposit account is closed after 6 months, the applicable interest rate will be the same as that of a Post Office savings account.
    • If a 2, 3, or 5-year Post Office Fixed Deposit account is closed after 1 year, the interest rate will be reduced by 2% compared to the Post Office Fixed Deposit rate for the completed years. For the period less than a year, the interest rate applicable will be that of a Post Office savings account.
  • Minimum and Maximum Investment: The minimum deposit amount for opening a National Savings Time Deposit Account is just Rs. 1,000 which is quite low, making it accessible to a wide range of investors. There is no maximum investment limit.
  • Tax Benefits: The 5-year Post Office FD scheme offers tax benefits under Section 80C of the Income Tax Act, enabling investors to claim deductions for their investments up to a certain limit.

2. National Savings Monthly Income Account

The National Savings Monthly Income Account is another popular post office FD scheme designed for individuals seeking regular monthly income. Here are its key features:

  • Investment Limit: Under this scheme, an account can be opened with a minimum deposit amount of just Rs. 1,000. The maximum deposit limit is Rs 4.5 lakh for an individual account and Rs 9 lakh for a joint account. In the case of an account opened by a guardian on behalf of a minor, the limit will be distinct.
  • Interest Payment: Interest is disbursed at the conclusion of each month starting from the account opening date and continuing until maturity. If the depositor does not claim the due interest at the end of a month, no additional interest will be accrued on the unclaimed interest amount. It's important to note that the interest income is subject to taxation for the depositor.
  • Tenure: The tenure for the National Savings Monthly Income Account is generally set at 5 years. Investors can choose to extend the account after maturity for an additional 5 years.
  • Premature Withdrawal: Any deposit in the National Savings Monthly Income Account can only be withdrawn after 1 year from the date of deposit. The following conditions apply for account closure:
    • If the account is closed after 1 year but before 3 years from the account opening date, 2% of the deposit amount will be deducted.
    • If the account is closed after 3 years but before 5 years from the account opening date, 1% of the deposit amount will be deducted.
  • In summary, the National Savings Time Deposit Account and the National Savings Monthly Income Account are two significant post office FD schemes that offer safety, regular income, and competitive interest rates. Investors should carefully assess their financial goals and needs to determine which of these schemes aligns best with their investment objectives.

Features and benefits of Bajaj Finance Fixed Deposit

Here is a table of the features and benefits offered by Bajaj Finance.

Interest rate Up to 8.85% p.a.
Minimum tenure 1 year
Maximum tenure 5 years
Deposit amount Minimum deposit of Rs. 15,000
Application process 100% online process
Online payment options Net banking and UPI


Post Office FD: TDS implication/ taxation

One significant benefit of investing in post office FD is that (TDS*) isn't deducted on the interest earned.

While documenting Income Tax Return (ITR), one can add their investments of fixed deposit in post office to claim deduction u/s 80C of the Income Tax Act, 1961. The upper limit for deductions under the said section of the IT Act, 1961 is maxed at Rs. 1.5 lakh, every financial year.

Post office fixed deposit vs Bajaj Finance Fixed Deposit

Suppose you are thinking of redirecting the interest earned from the post office FD. In that case, you can consider an alternative option of investing in high-yielding companies that offer similar guarantees with zero to low risk on FD.

Even though post office FD may offer a higher interest rate than bank FD, it cannot match the interest rate provided by company FDs. You can ensure maximum returns on FDs guaranteed by well-financed and liquid companies like Bajaj Finance. Let us see how you can benefit even further with a Bajaj Finance FD.

  • Investment rate – Bajaj Finance FD offers higher interest rates of up to 8.85% p.a., which is higher than any other fixed-income option given the current state of the economy. A post office FD will allow a maximum of up to 7.50% p.a., which can be further reduced if the government securities (G-sec) yield falls.
  • Flexibility – Bajaj Finance FD offers flexible terms for premature withdrawal (compared to post office FD). It also provides an option to avail of loan against FD at a marginal interest rate.
  • Ease of access – While a post office FD may not offer you many online features, you can easily invest in a Bajaj Finance online FD that enables you to reap the benefit of an end-to-end online paperless procedure. Additional features of doorstep document pickup, multi-deposit, and auto-renewal make it even more convenient. You can open a Bajaj Finance online FD account by just using a debit card at a few locations.

Bajaj Finance also accepts deposits from NRIs and is rated high on the safety and stability ranking, making it one of the best investment options for those with a lower risk appetite. To help you compare the features of post office fixed deposit and Bajaj Finance Fixed Deposit, here is a table detailing the differences between the two:

Feature Post office FD Bajaj Finance FD
Special tenure No Yes
Quarterly interest rate revision Yes No
Flexible premature withdrawal No Yes
Online account management No Yes
Multi-deposit facility No No
NRI FD No Yes


With a total deposit book size of more than Rs.50000 crores, you can trust Bajaj Finance FD to give you maximum returns at little to no risk.

Frequently Asked Questions

What is the Digital FD offered by Bajaj Finance?

Bajaj Finance has launched a new FD variant called "Bajaj Finance Digital FD" for a period of 42 months. Bajaj Finance is providing one of the highest interest rates of up to 8.85% p.a. for senior citizens and for the customers below the age of 60 they are providing up to 8.60% p.a. The Digital FD can be opened and managed only through the Bajaj Finserv website or app.

What is the highest Post Office fixed deposit interest rate?

The top Post Office Fixed Deposit interest rate is 7.50% for deposits with a maturity period of 5 years. This rate is effective from 01.01.2024 to 31.03.2024.

In how many years will an FD double in the post office?

The time it takes for a Post Office fixed deposit to double depends on the interest rate. You can use the Rule of 72 to estimate it. Divide 72 by the annual interest rate to find the approximate number of years for doubling.

Which is better, Bank FD or Post Office FD?

The choice between Bank FD and Post Office FD depends on your financial goals and preferences. Both have their pros and cons, so it's advisable to compare the interest rates, tenure options, and other factors to make an informed decision.

Can Post Office Fixed Deposit be opened online?

Yes, you can open a Post Office Fixed Deposit online.

What is the maximum deposit amount to open a time deposit account in a post office?

There is no maximum limit to open a Post Office FD.

Is Post Office FD safe to invest in?

Yes, Post Office Fixed Deposits are considered safe and are backed by the Indian government. They offer capital protection and guaranteed returns.

Is it possible to break the Post Office fixed deposit?

Yes, you can prematurely withdraw a Post Office fixed deposit, but certain conditions and penalties may apply. It's advisable to check specific details for premature withdrawal before investing.

How many members can open this FD jointly?

In a Post Office Fixed Deposit, joint accounts can have a maximum of three account holders.

Can one claim 80C deductions for investments made in a Post Office time deposit account?

An investment held for a duration of 5 years is eligible for tax deductions under Section 80C of the Income Tax Act, 1961.

Do I have to pay tax on investments made in the Post Office fixed deposit scheme?

As per Section 80TTB of the Income Tax Act, for regular investors Post Office Fixed Deposit TDS is applicable, if the interest earnings exceed Rs. 40,000 annually.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.