What are the latest Post Office FD Interest Rates?

Published on: 29 August 2023

Post Office FD interest rates are usually revised every quarter and with the recent revision, you can earn good returns of up to 7.50%. Post Office Savings Schemes have been in existence since India’s independence and were meant to promote a habit of saving among citizens since their launch. 

The Time Deposit or Fixed Deposit is one among other such schemes, such as National Savings Recurring Deposit (RD), Public Provident Fund (PPF)​ and National Savings Monthly Income Account (MIS). As such, it is a traditional route to save and holds the trust of investors across the country. 

As with other FDs, the Post Office FD scheme is non-market linked. It is regulated by the Post Office of India and backed by the government, making it an ideal choice to reduce the risk exposure of your investment portfolio. 

Read on to know the Post Office latest interest rates for FDs as per the tenure. 

Post Office FD Interest Rates 2023 

The Post Office Fixed Deposit (FD) scheme ensures the safety of your investment. By understanding fixed deposit Post Office interest rates, you can capitalise on your investment and save for future needs. Keep in mind that your interest is computed every quarter and paid annually in such deposits. 

The Post Office latest interest rates for FDs vary based on the tenure, so check the table below to see what you stand to earn. 

These rates are valid up to August 30, 2023 and you can check the latest rates before you invest to ensure you are making the right choice. 

Also Read: Best banks for saving accounts in India

Features of the India Post Fixed Deposit

There are several beneficial features as mentioned below of this Time Deposit offered by the Post Office.

• Simple choices of tenure and low starting value: As you can see in the table above, you can start your investment for 1, 2, 3 or 5 years. The best part is that you need not delay your investment as you only need ₹1,000 to book an FD. There is no upper limit as long as you increase your investment in multiples of 100. 

• Easy extension of the duration: You have the option to extend your account once it matures. If you choose to do so, you can continue the account for the same period as the original tenure. Simply follow the prescribed period to notify the Post Office of your decision to do so:
  • for a 1-year FD, you can extend within 6 months of maturity
  • for a 2-year FD, you can extend within 12 months
  • for 3- or 5-year FD, you can extend within 18 months

• Tax benefits: Apart from the high Post Office 5-year FD interest rate of 7.50%, you can 

enjoy the advantage of tax exemptions on your investment as per Section 80C of the Income Tax Act, 1961.

• Easy access to liquidity: You can close your FD account earlier than your chosen tenure if you need access to cash. However, this is permitted only after 6 months. In such cases, an interest penalty will apply based on when you withdraw your investment. 

• Open to all and no restriction on the number of accounts: As an individual, you can start your investment in a Post Office FD without any restrictions. In fact, you can open an account on your own or a joint account with two other individuals. Guardians can start this FD for minors and minors can also start this investment if they are above the age of 10 years.
  What’s more, you can benefit from laddering by opening multiple FDs as there is no cap on the number of accounts you open. 

These benefits of Post Office Fixed Deposits allow you to grow your money and secure your financial future with ease. However, make sure you check the prevailing rates of other FDs in the market before making your choice. 

To avoid prematurely withdrawing your FD, you can avail of a Personal Loan up to Rs.5 lakhs from Fibe. It takes just a few minutes to apply online, so download our Personal Loan App or register on the website today! 

FAQs on Post Office FD Interest Rates

What is the interest on ₹1 lakh in a Post Office FD?

The interest you earn on an FD of ₹1 lakh in a Post Office FD will depend on the specific tenure you choose and the prevailing Post Office FD interest rates. If you invest for 1 year as of August 2023, you can earn approximately ₹7,081. 

Which fixed deposit is best in Post Office FD?

The best fixed deposit tenure depends on your financial goals, as different tenures come with varying interest rates. You can get a return rate ranging from 6.90% to 7.50%. If you want to earn high returns and get tax benefits, go for the 5-year Tax-Saver FD.

What are Post Office FD interest rates in 2023?

The fixed deposit Post Office interest rates in 2023 vary based on the tenure. The rates start at 6.90% and go up to 7.50%. 

Is the Post Office FD 100% safe?

Yes, investing in Post Office FD is considered safe as it is backed by the Government of India. It is a secure investment option with guaranteed returns.

Can I double my money in 5 years with a Post Office FD?

No, as of now, you can get an interest of 7.50% on 5-year Post Office FDs, which does not double your investment.  

What is the maximum FD amount I can invest in a Post Office?

There is no maximum limit for investing in a Post Office FD. You can start your investment with ₹1000 and up in multiples of 100.

Is it good to invest in Post Office FD?

Investing in Post Office FD can be a good option for secure and guaranteed returns. It provides a fixed interest rate, making it suitable for conservative investors seeking stability.