Post Offices like banks offer FD (Fixed Deposits) and offer very competitive interest rates. The latest Post Office FD interest rates vary from 6.9% for 1-year deposit to 7.7% 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 2020 (Jan to Mar) are as follows:
- 1 Year FD – 6.9%
- 2 Year FD – 6.9%
- 3 Year FD – 6.9%
- 5 Year FD – 7.7%
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.
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]

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 year | Apr – Jun | Jul – Sep | Oct – Dec | Jan – Mar |
2019 – 20 | 7.00% | 6.90% | 6.90% | 6.90% |
2018 – 19 | 6.60% | 6.60% | 6.90% | 7.00% |
2017 – 18 | 6.90% | 6.80% | 6.80% | 6.60% |
2016 – 17 | 7.10% | 7.10% | 7.00% | 7.00% |
For Post Office 2 year FD:
Financial year | Apr – Jun | Jul – Sep | Oct – Dec | Jan – Mar |
2019 – 20 | 7.00% | 6.90% | 6.90% | 6.90% |
2018 – 19 | 6.70% | 6.70% | 7.00% | 7.00% |
2017 – 18 | 7.00% | 6.90% | 6.90% | 6.70% |
2016 – 17 | 7.20% | 7.20% | 7.10% | 7.10% |
For Post Office 3 year FD:
Financial year | Apr – Jun | Jul – Sep | Oct – Dec | Jan – Mar |
2019 – 20 | 7.00% | 6.90% | 6.90% | 6.90% |
2018 – 19 | 6.90% | 6.90% | 7.20% | 7.00% |
2017 – 18 | 7.20% | 7.10% | 7.10% | 6.90% |
2016 – 17 | 7.40% | 7.40% | 7.30% | 7.30% |
For Post Office 5 year FD (also eligible for tax deduction u/s 80C):
Financial year | Apr – Jun | Jul – Sep | Oct – Dec | Jan – Mar |
2019 – 20 | 7.80% | 7.70% | 7.70% | 7.70% |
2018 – 19 | 7.40% | 7.40% | 7.80% | 7.80% |
2017 – 18 | 7.70% | 7.60% | 7.60% | 7.40% |
2016 – 17 | 7.90% | 7.90% | 7.80% | 7.80% |
Also Read: Best Tax Saving Investments u/s 80C
Before April 1, 2016:
Financial Year | Time Period | 1 Year | 2 Years | 3 years | 5 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 – 12 | 1 Dec 2011 to 31 March 2012 | 7.70% | 7.80% | 8.00% | 8.30% |
2011 – 12 | 1 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 – 03 | 1 March 2003 to 30 Nov 2011 | 6.30% | 6.50% | 7.30% | 7.50% |
2002 – 03 | 1 March 2002 to 28 Feb 2003 | 7.30% | 7.50% | 8.30% | 8.50% |
2001 – 02 | 1 March 2002 to 28 Feb 2003 | 7.30% | 7.50% | 8.30% | 8.50% |
2001 – 02 | 1 March 2001 to 28 Feb 2002 | 7.50% | 8.00% | 9.00% | 9.00% |
2000 – 01 | 15 Jan 2000 to 28 Feb 2001 | 8.00% | 9.00% | 10.00% | 10.50% |
2000 – 01 | 1 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 – 99 | 1 Jan 1999 to 14 Jan 2000 | 9.00% | 10.00% | 11.00% | 11.50% |
1998 – 99 | 2 Sep 1993 to 31 Dec 1998 | 10.50% | 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 – 94 | 2 Sep 1993 to 31 Dec 1998 | 10.50% | 11.00% | 12.00% | 12.50% |
1993 – 94 | 16 Dec 1991 to 1 Sep1993 | 12.00% | 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 – 91 | 16 Dec 1991 to 1 Sep1993 | 12.00% | 12.00% | 13.00% | 13.50% |
1990 – 91 | 1 Oct 1991 to 15 Dec 1991 | 10.00% | 11.00% | 13.00% | 13.50% |
1990 – 91 | 1 Apr 1991 to 30 Sep 1991 | 9.50% | 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% |
Post Office Vs Bank FD:
Post Office FD | Bank FD | |
Interest Rate | Usually Higher. As of today offers 7% for 1,2 & 3 Years tenure and 7.8% for 5 Year Tenure | Lower than Post Office FD. SBI offers 6.8% for less than 5 Years and 6.85% for 5 Years |
Tenure | Fixed Tenures of 1, 2, 3 and 5 Years | Flexible Tenure – can choose from 45 days to 10 Years |
Safety | Extremely Safe as guaranteed by Government of India | Insured up to Rs 1 Lakh deposit only. Nationalized banks are safe followed by Large Private Banks. Stay cautious of cooperative banks |
Ease of Investment | can be done only offline and so have to physically visit post office. Involves paperwork | Can be done online in most banks without much hassle |
Extra Incentive | No special rates for Senior Citizens. They can opt for Senior Citizen’s Saving Scheme which has higher interest rate | Banks 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.
Mujhe post ofiice k mutual fund k bare me detail information de sakte hai eg.kitne se satart kr sakte hai kitne time k liye bech me withdrow kr sakte hai ki nhi? Or ye kitna safe hai?