Interest rates offered by various Nationalized banks and post office

Indian Post Office Fixed Deposit Interest Rates range between 5.50% and 6.70%. Senior citizens may earn higher rates; 0.25% to 0.50% additional on existing rates. The tenure of the Fixed Deposit (FD) is from 7 days to 5 years. The schemes come with a fixed rate of interest and earning. So, you can consider Post Office FD plans for safe and secured investment. You will also receive an insurance cover on the deposited amount up to a limit.

In this post, we will discuss Indian Post Office FD Interest Rate features, details about National Savings Time Deposit Account, loan against FD, most feasible plans, application procedure, documents required, and frequently asked questions.

Features of Indian Post Office FD Rates

Here are the features:

• You can deposit as less as Rs. 1,000. There is no upper limit to the deposit amount.
• Tenure of the Post Office Fixed Deposit is between 7 days and 5 years.
• The most popular scheme is the National Savings Time Deposit Account.
• The range of interest rate per annum is from 5.50% to 6.70%. It is the Government of India that decides the Indian Post Office Fixed Deposit Interest Rates on a regular basis.
• You can choose to apply for a loan against FD to fulfil any cash liquidity. For this, you do not have to break the fixed deposit.
• You will receive facilities such as nomination and auto-renewal.
• The deposits of up to Rs. 5 lakhs are covered under the RBI’s Deposit Insurance Scheme, insured by the DICGC.

Loan against FD Indian Post Office

You can also choose to take a loan on the Indian Post Office FD.

• The maximum tenure of the loan is the maturity date of the FD.
• The applicable rate on the loan is 6.5% to 7.7%.
• The maximum loan amount offered against the fixed deposit depends on the decision of the authorities.

Most Lucrative FD Scheme by the Indian Post Office

Before you invest in the Indian Post Office FD scheme, you must know the varying tenures and the corresponding interest rates. This will give you an idea as to which scheme will provide you the highest return. For instance, the tenure of 3 years 1 day to 5 years provides the highest rate at 6.70% per annum. But if you are not into long-term deposits, then you may look for a short-term scheme.

The interest rate for short-term schemes is 5.50%. The tenure for the same is 7 days to less than 365 days. Remember that the interest on the FD is applied at the time of maturity. Senior citizens may get an additional 0.25% to 0.50% on the standard rates.