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How To Open FD in Indian Post Office

How To Open FD in Indian Post Office

If you are looking for information about FD of Post Office, then you have come to the right website Banking Gyan, we will tell you all about India Post FD Scheme.

Read this article properly to understand the features, benefits, required documents, and criteria for opening an FD in Post Office in India.

India Post, which runs all post offices across India, offers fixed deposit accounts at a 5.50 % – 6.7% p.a interest rate. It is also called a “Post Office Time Deposit Account,” backed by the Indian government, and customers earn a guaranteed return over a fixed maturity term.

Investing in 5 years FD Scheme, customers earn 6.7% interest over a maturity period. Investment in Post office FD is the best option for you since the Indian government powers the scheme.

 Let’s take a look at the features, benefits, documentation, and criteria of Post Office Fixed Deposit and also see the procedure of opening a fixed deposit account in the post office online and offline:

Benefits of Post Office Fixed Deposit

Investing in a post office fixed deposit gives many benefits to investors. Following are the benefits of FD:

  • TDS FREE interest on post office fixed deposit
  • Guaranteed return on FD Scheme of the post office, which the government backs
  • More than one FD account can open a customer countrywide in a post office
  • Accessible fund transfer facility available for customers, one post office to another one
  • Attractive Interest rate
  • The minimum deposit fund is 1000 rupees for FD
  • FD joint account open, up to three members

Eligibility Criteria for Post Office Fixed Deposit

Customers who are eligible for Office Fixed Deposit criteria are given below:

Who can Open an FDEligibility Criteria
AdultMust be 18 years old
MinorsShould be above the age of 10 years
Minors (less than 10 years old)A legal guardian can be opened on behalf of minors
Joint AccountA joint account can be opened with up to 3 adults

Features of Post Office Fixed Deposit Account

Followings are the Features of Post Office FD:

Investment Period1 year, 2 years, 3 years, 4 years, and 5 years
Minimum deposits amount₹ 1000
Payment ModeCash, Cheque, and online payment
Interest CalculationAnnual
Withdraw before maturityAfter 6 months from opening FD
Tax BenefitsApplicable only on 5-year FD

Required documents to open a post office fixed deposit.

To open an FD in the post office, the following documents are required:

  • Identity Proof: Aadhaar card, Driving license, Voter card, Passport and Ration card, etc.
  • Address Proof: Aadhaar card, Utility bill, Electricity bill, and Ration card.
  • Compulsory Document: PAN card
  • Photographs: 2 recent passport-size photos

How to apply for and open a Post Office Fixed Deposit?

Individuals can open FD in any post office countrywide, offline, and online. Both ways are mentioned below. Take a look:

1.) Online Method:

Post office FD account can be opened through Internet banking of post office offered to a savings account. Follow the below steps:

Step 1: Go to the official website link of India Post at ebanking.indiapost.gov.in.

Step 2: Log in with your registered ID and Password to access your savings account

Step 3: Hit “Service Request” under the ” General Services” tab.

Step 4: Follow directions on-screen and click on the “New Request” option to initiate an FD opening request.

2.) Offline Mode

If you want to open the FD offline, you go to the nearest post office and take an FD opening form.

Submit required documents copies along with filled application form. The post office official will direct you to further processing.

Terms and Conditions regarding Premature Withdrawal

The period of Post Office Fixed Deposit is between 1 to 5 years, but some specific rules will apply in the condition of premature withdrawal. These rules are mentioned below:

  • You could not break FD for six months from the opening of Post Office FD. 
  • If the customer closes PO FD after six months, the interest rate on the invested fund is as per the savings account.

Frequently Asked Questions (FAQs)

1. Can I renew an investment made in a Post Office FD account?

Ans: Yes, you can renew your investment in a Post Office FD account.

2. How to renew an investment made in a Post Office Fixed Deposit account?

Ans: If you do not withdraw funds after finishing the tenure of Post Office FD, the Fixed Deposit account will be renewed automatically.

Note: The interest rate of renewed FD will be given as offered by Post Office on the renewal day.

3. I’m not an Indian citizen. Am I eligible to open a Post Office FD?

Ans: Non-Indian can not open a Post Office FD account.

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