Post Office FD Interest Rate 2019

Post Offices like banks offer FD (Fixed Deposits) and offer very competitive interest rates. The latest Post Office FD interest rates vary from 7% for 1-year deposit to 7.8% for 5-year deposit. The post gives the details about the same.

Post Office FD Interest Rate

As with all other Small Saving Schemes like PPF, SCSS, Post Office FD rates are also declared every quarter. The Post Office FD Interest Rate for 2019 (Jan to Jun) are as follows:

  • 1 Year FD – 7.0%
  • 2 Year FD – 7.0%
  • 3 Year FD – 7.0%
  • 5 Year FD – 7.8%

Interests are compounded quarterly under this scheme. There is no additional interest for senior citizens, as they can choose to invest in Senior Citizen Saving Scheme.

Also Read: 7 High Rated Companies Offering more than Bank Fixed Deposits

Post Office Fixed Deposit Scheme – Features

Who can open FD Account?

Any adult (more than 18 years of age) Indian can open Post Office FD Account. This can be either on one or joint names.

Accounts can also be opened by minor with more than 10 years of age along with an adult (parents or legal guardian).

NRIs are not eligible to open Post Office FDs.

Nomination can be done at the time of account opening or afterwards.

Post Office FDs still cannot be opened online.

If required the account can be transferred from one post office to other.

Also Read: Should you invest in Small banks Fixed Deposits?

Post Office FD Investment Rules:

The minimum investment amount is Rs 200 and there is no maximum investment limit.

The money can be deposited either in cash, cheque or demand draft. However, in case of cheque or demand draft, the date of account opening is the day they get encashed.

There is no limit to the number of FD accounts you can create in post office. Essentially each FD created is like different account.

On maturity the account can be renewed with the same tenure as it was initially opened. The applicable interest rate would be as available on the day of maturity.

Premature withdrawal is allowed only after the completion of 6 months of the FD tenure. There may be penalty for the same.

Also Read: Kisan Vikas Patra – Double your money on maturity

Tax on Post Office FD Scheme:

The 5-year Post Office Fixed deposit is eligible for Tax benefit u/s 80C (up to Rs 1.5 Lakhs).

The interest earned is subject to TDS @ 10% if the annual interest paid is more than Rs 40,000 [Budget 2019]

You can fill Form 15G/H in case you are eligible to avoid TDS

The interest received is fully taxable at applicable marginal income tax rates.

Effective April 1, 2018 Interest income up to Rs 50,000 is exempted from tax for Senior citizens u/s 80TTB [Budget 2018]

Download: Free ebook for Income Tax Planning for FY 2019-20

Post Office FD Interest Rate

Post Office FD Interest Rate

Post Office Fixed Deposit Interest Rate History:

Post Offices started offering fixed deposits (also know as time deposits) from 1987 and the table below gives the interest rate since then for different tenures.

The highest interest ever offered was 13.5% for 5 years FD from 1st October 1991 to 1st September 1993.

After April 1, 2016 – Quarterly Interest Reset:

For Post Office 1 year FD:

Financial yearApr – JunJul – SepOct – DecJan – Mar
2019 – 207.00%   
2018 – 196.60%6.60%6.90%7.00%
2017 – 186.90%6.80%6.80%6.60%
2016 – 177.10%7.10%7.00%7.00%

For Post Office 2 year FD:

Financial yearApr – JunJul – SepOct – DecJan – Mar
2019 – 207.00%   
2018 – 196.70%6.70%7.00%7.00%
2017 – 187.00%6.90%6.90%6.70%
2016 – 177.20%7.20%7.10%7.10%

For Post Office 3 year FD:

Financial yearApr – JunJul – SepOct – DecJan – Mar
2019 – 207.00%   
2018 – 196.90%6.90%7.20%7.00%
2017 – 187.20%7.10%7.10%6.90%
2016 – 177.40%7.40%7.30%7.30%

For Post Office 5 year FD (also eligible for tax deduction u/s 80C):

Financial yearApr – JunJul – SepOct – DecJan – Mar
2019 – 207.80%   
2018 – 197.40%7.40%7.80%7.80%
2017 – 187.70%7.60%7.60%7.40%
2016 – 177.90%7.90%7.80%7.80%

Also Read: Best Tax Saving Investments u/s 80C

Before April 1, 2016:

Financial YearTime Period1 Year2 Years3 years5 Years
2015 – 16 8.40%8.40%8.40%8.50%
2014 – 15 8.40%8.40%8.40%8.50%
2013 – 14 8.20%8.20%8.30%8.40%
2012 – 13 8.20%8.30%8.40%8.50%
2011 – 121 Dec 2011 to 31 March 2012 7.70%7.80%8.00%8.30%
2011 – 121 March 2003 to 30 Nov 2011 6.30%6.50%7.30%7.50%
2010 – 11 6.30%6.50%7.30%7.50%
2009 – 10 6.30%6.50%7.30%7.50%
2008 – 09 6.30%6.50%7.30%7.50%
2007 – 08 6.30%6.50%7.30%7.50%
2006 – 07 6.30%6.50%7.30%7.50%
2005 – 06 6.30%6.50%7.30%7.50%
2004 – 05 6.30%6.50%7.30%7.50%
2003 – 04 6.30%6.50%7.30%7.50%
2002 – 031 March 2003 to 30 Nov 20116.30%6.50%7.30%7.50%
2002 – 031 March 2002 to 28 Feb 20037.30%7.50%8.30%8.50%
2001 – 021 March 2002 to 28 Feb 20037.30%7.50%8.30%8.50%
2001 – 021 March 2001 to 28 Feb 20027.50%8.00%9.00%9.00%
2000 – 0115 Jan 2000 to 28 Feb 2001 8.00%9.00%10.00%10.50%
2000 – 011 Jan 1999 to 14 Jan 2000 9.00%10.00%11.00%11.50%
1999 – 00 9.00%10.00%11.00%11.50%
1998 – 99 9.00%10.00%11.00%11.50%
1998 – 991 Jan 1999 to 14 Jan 2000 9.00%10.00%11.00%11.50%
1998 – 992 Sep 1993 to 31 Dec 199810.50%11.00%12.00%12.50%
1997 – 98 10.50%11.00%12.00%12.50%
1996 – 97 10.50%11.00%12.00%12.50%
1995 – 96 10.50%11.00%12.00%12.50%
1994 – 95 10.50%11.00%12.00%12.50%
1993 – 942 Sep 1993 to 31 Dec 199810.50%11.00%12.00%12.50%
1993 – 9416 Dec 1991 to 1 Sep199312.00%12.00%13.00%13.50%
1992 – 93 12.00%12.00%13.00%13.50%
1991 – 92 12.00%12.00%13.00%13.50%
1990 – 9116 Dec 1991 to 1 Sep199312.00%12.00%13.00%13.50%
1990 – 911 Oct 1991 to 15 Dec 199110.00%11.00%13.00%13.50%
1990 – 911 Apr 1991 to 30 Sep 19919.50%10.00%10.50%11.00%
1989 – 90 9.50%10.00%10.50%11.00%
1988 – 89 9.50%10.00%10.50%11.00%
1987 – 88 9.50%10.00%10.50%11.00%

Also Read: How to Pay 0 Income Tax on Rs 20 Lakh Salary?

Post Office Vs Bank FD:

 Post Office FDBank FD
Interest RateUsually Higher. As of today offers 7% for 1,2 & 3 Years tenure and 7.8% for 5 Year TenureLower than Post Office FD. SBI offers 6.8% for less than 5 Years and 6.85% for 5 Years
TenureFixed Tenures of 1, 2, 3 and 5 YearsFlexible Tenure – can choose from 45 days to 10 Years
SafetyExtremely Safe as guaranteed by Government of IndiaInsured up to Rs 1 Lakh deposit only. Nationalized banks are safe followed by Large Private Banks. Stay cautious of cooperative banks
Ease of Investmentcan be done only offline and so have to physically visit post office. Involves paperworkCan be done online in most banks without much hassle
Extra IncentiveNo special rates for Senior Citizens. They can opt for Senior Citizen’s Saving Scheme which has higher interest rateBanks usually offer 0.25% to 0.6% higher interest rate for Senior Citizens

Also Read: Highest Interest Rate on Bank FDs (compared across 44 banks)

Should you Invest in Post Office FD?

The interest rates offered by Post Office FDs are generally higher than most Nationalized banks. However, the process of investment requires physical visit to the post office and paperwork. In case you are comfortable with the same it makes sense to invest in Post Office FDs.


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