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Things to keep in mind before investing in Post Office Fixed Deposit scheme

Before you make any investment, it is always a good idea to get a better idea of the finer details involved. That way, you can make a more informed decision about the investment you plan to make. And for investors looking for safe investment to park their funds in, the post office fixed deposit scheme is a good option to consider. You can also use a post office fixed deposit calculator and get the amount of interest you stand to earn from your FD investment.

If you’ve been considering investing in this scheme, here are some key things to keep in mind before you do.

1.       Interest on post office FDs

The interest rates on the deposits made under this scheme are decided by the postal services department of the government. The interest rates depend on the tenure of investment. Here are the latest interest rates.

Period of deposit Interest rate
1 year 5.5%
2 years 5.5%
3 years 5.5%
5 years 6.7%

As mentioned earlier, to get a better idea of the interest you will earn from your post office FD investment, you can make use of a post office FD calculator. A post office time deposit calculator, as it’s also know, is basically an online tool that helps you calculate the maturity amount, and therefore, the interest on your deposit. You can find many post office FD calculators available online free of charge. The FD calculator on Finserv MARKETS can also help you get a better idea of the interest you’ll earn from your deposit.

2.       Features of a post office FD account

A post office FD also has several distinct features. Some of these are listed here.

  • These fixed deposits offer a nomination facility.
  • They are backed by the sovereign guarantee – which makes them highly safe investment options.
  • Your FD account can be transferred from one post office to another.
  • There is a facility to open an account online, so it’s easier to start investing.
  • The minimum amount to invest in a post office FD is Rs. 1,000. Thereafter, you can invest higher amounts in multiples of Rs. 100.
  • There is no maximum limit on investment.

3.       Eligibility criteria to open a post office FD account

The following people are eligible to invest in an FD account in the post office FD scheme.

  • Any single adult
  • A maximum of 3 adults for a joint account
  • A minor above 10 years of age
  • A guardian on behalf of a minor or Person of unsound mind

4.       Documents needed to open an account

To open an account, you will need to submit the following documents to the India Post Office:

  • Passport size photographs
  • Identity proofs such as Aadhar card, passport, PAN card, and driving license
  • Address proofs such as passport, ration card, utility bills such as water, gas or electricity bill
  • Age proof such as birth certificate, matriculation passing certificate, and Voter ID card
  • Bank account details such as passbook and account number


So, that should give you a fair idea of the things you need to know before opening a post office FD. Remember to make use of a post office FD calculator on Finserv MARKETS beforehand, so you can plan your finances smartly. If you’re looking for more FD options to select from, check out the products available on Finserv MARKETS. You’re sure to find a fixed deposit scheme that suits your needs.

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