Post Office Fixed Deposit Interest Rates

Features: Premature withdrawal

                Tax facilities

Number of Nominees: 1

Institution type: NBFC

Rates for Post Office 5-year Fixed Deposit

The 5-year Post Office Fixed Deposit comes with tax benefits under Section 80C of the Income Tax Act 1961.

The rate of interest* for 5-year Post Office FD:

Interest rates From 01.01.2019

Highlights of Post Office FD rates

• Highest Post Office TD interest rate: 7.80% p.a. for a tenure of 5 years
• Range of interest rates: 7.00% p.a. to 7.80% p.a.
• Interest rate for a tenure of 1 year: 7.00% p.a.
• Rate of interest for a maturity of 2 years: 7.00% p.a.
• FD rate for a maturity period of 3 years: 7.00% p.a.
• FD rate for a maturity period of 5 years: 7.80% p.a.

Salient features including Tax Rebate

• Account may be opened by individual
• Account can be opened by cash /Cheque and in case of Cheque the date of realization of C heque in Govt. account shall be date of opening of account
• Nomination facility is available at the time of opening and also after opening of account
• Account can be transferred from one post office to another
• Any number of accounts can be opened in any post office
• Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account
• Joint account can be opened by two adults.
• Single account can be converted into Joint and Vice Versa
• Minor after attaining majority has to apply for conversion of the account in his name
• *In CBS Post offices ,when any TD account is matured, the same TD account will be automatically renewed for the period for which the account was initially opened . Example 2 Years TD account will be automatically renewed for 2 Years. Interest rate applicable on the day of maturity will be applied
• The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Categorization of Post Office FD applicants

The applicants for the Term Deposit scheme are divided into three categories based on the total savings in all their individual savings accounts.

• Low Risk: Net balance is up to Rs.50,000
• Medium Risk: Total balance is above Rs.50,000 to Rs.10 lakh
• High Risk: Sum balance is above Rs.10 lakh

KYC Documents to submit during Post Office TD application

• Applicant must submit attested photocopies of the following documents.
• Identity proof (any one)
  • Aadhaar Card
  • Electoral ID Card
  • Ration Card
  • Driving License
  • Post Office ID Card
  • Government-issued ID Card
  • Pension Payment Order (if applicable)
  • Below Poverty Line (BPL) Card (if applicable)
  • MGNREGA Card (if applicable)
  • ID Card issued by a valid educational institute
  • Permanent Account Number (PAN) Card (for medium-risk and high-risk customers)
• Residential proof (any one)
  • Passbook issued by a bank or Post Office
  • Passport
  • Ration Card
  • Aadhaar Card
  • Electricity or Telephone bills (< 3 months old)
  • Salary slip issued by employer
  • Certificate issued by a Branch Postmaster/Gram Dak Sewak Delivery Agent/Public Authority/Postman
• In case of joint accounts, both the account holders must submit their respective ID and residential proofs.
• 1 recent colour passport-size photograph of the applicant
• 2 recent colour passport-size photographs, in case of Extra Departmental Branch Office (EDBO)

Eligibility criteria to apply for Post Office Time Deposit scheme

• All citizens of India who have attained the legal adult age
• Minors of the age 10 and above

How does nomination work for Post Office Time Deposit scheme?

• Upon the death of the depositor, only the appointed nominees or the legal heir can claim the FD returns
• In the absence of nomination, the legal heir must submit the following:
  • Death Certificate of the depositor
  • Form SB84
  • A letter of consent signed by all the respective legal heirs
  • A claim up to a maximum amount of Rs.1 lakh will be settled
  • A claim higher than Rs.1 lakh would require legal documents such as the will of the depositor.
• In case of nomination, the beneficiary must submit the required form and the death certificate of the account holder.

---------------------------------------------------------

Source: Post Office official Website 

Updated: 28/03/2019

--------------------------------------------------------

OFFERS FROM THE SAME COMPANY

---------------------------------------------------------