Indian Post Office Fixed Deposit Scheme: FD Account

Indian post office fixed deposit scheme offered by the India post is a suitable alternative to the fixed deposit schemes offered by different banks. An individual through this scheme can earn a guaranteed return on that money which he will deposit for a fixed period of time. 

India Post besides delivering couriers and mail through 23 postal circles and more than 1, 55,000 post offices it also offers saving account opportunities such as fixed deposits (FD) recurring deposit account (RD) with good interest rates. 

The post office also provides other small saving planes for the general public of the country like National Saving Certificate (NSC) Senior Citizens Saving Scheme (SCSS) Postal Life Insurance, Kisan Vikas Petra (KVP), etc. Here in this post, we will discuss the Indian post office fixed deposit scheme.

Eligibility for Indian Post Office Fixed Deposit Scheme

Eligibility criteria to invest in post office fixed deposit scheme.

  • Any Indian resident jointly or individually can take benefit from such investment.
  • Minors can also open accounts i.e. they can invest in this scheme but under the supervision of their legal hairs. 
  • Companies, trusts, organizations, and NRIs (Non-Indian Residents) are not eligible to invest in a post office fixed deposit scheme. 

Documents Required For Post Office Fixed Deposit Scheme

To invest in this scheme an investor has to furnish the below-mentioned document: 

Address Proof

  • Certificate or ID issued by the post office
  • Telephone bill
  • Electricity bill
  • Passport
  • A statement including cheque issued by the bank

Identity Proof

  • Voter ID card
  • PAN card
  • Aadhaar card
  • Driving license
  • Photo ration card
  • Passport

Besides, the details of the nominee have to be submitted by the investor. Also at the time of signature on the investment papers by the investor a witness should be present there.  

How to Open FD Account

To open an FD account there are two methods i.e. online and offline method using these two methods you can open an account under the FD scheme. 

Online Method

One can open an FD account through the online method by using intra-operable net banking. Since 2018 internet banking in Indian post offices is available through which account holders can easily transfer funds from one post office account to another post office account. 

To open a fixed deposit account online the customer should have the below-mentioned things.

  • A valid and active account in a post office
  • KYC verified documents
  • Mobile number and active Email ID
  • Department of post’s active ATM or debit card

Steps to Follow to Open an FD Account Online

  • Log into the post office’s e-banking window at using registered user ID and password.
  • After successful login hit on general services.
  • Search service request and open it.
  • By using the option of new request make the fixed deposit or time deposit opening request.

To complete the process follow the further steps.

Also Read: Senior Citizens Savings Scheme Post Office

Steps to Follow to Open FD Account Offline

For opening an FD account through offline mode one has to follow the below-mentioned steps

  • Take all necessary documents with you and visit your nearest post office branch.
  • In the post office talk to the post office employees for further help in opening of FD account.
  • The concerned person in the post office will guide you throughout the FD account opening process. 
  • After your FD account is successfully opened ensure to take the receipt for future references.
  • Take the information about the interest rates of the FD account for reference.

 Indian Post Office Fixed Deposit Scheme Benefits

A lot of people in the country preferred India’s post-fixed deposit (FD) scheme because of the advantages offered by the scheme. In addition to high-interest rates on the investments of FD scheme some of the well-known benefits of the post office fixed deposit scheme are as under:

  • Being a government-backed scheme so the government of India gives the guarantee about the scheme, thus there is a high level of security feeling among the investors.
  • You can open an account under this scheme in two ways i.e. offline or online through internet banking.
  • Interest earned on the investments of fixed deposit schemes is exempted from taxes.
  • You can invest individually i.e. open an account individually or can open a joint account up to a maximum of three members. 
  • You can transfer the fixed deposit account easily from one post office to another post office.
  • More than one fixed deposit (FD) account can be opened in any of the post offices 
  • Minors can also invest in FD schemes but under the supervision of their parents or legal heirs.
  • You can select a nominee for the FD account even after the opening of the account.

Fixed Deposit (FD) Account Interest Rates

Post office FD provides an attractive rate of interest on the investment amount, depending on the tenure of maturity that an investor select. One to five years is the tenure period of the FD scheme. Interest rates of fixed deposit account based on investment tenure is shown in the table below:                 

Tenure Interest Rates
1 Year 6.90/annum
2 Years 6.90/annum
3 Yeats 6.90/annum
5 Years 7.70/annum

No additional interest rates are provided by the fixed deposit scheme for senior citizens. Thus it does not matter whether the depositor is under 60 or over 60 years of age, on a particular amount interest earnings are the same.  

Premature Withdrawal Facility For FD Account

Withdrawal before the maturity of the FD account is available. If anyone having an FD account wants to withdraw the amount before maturity he has to keep some points in mind.

  • The invested amount in FD has to complete at least 6 months before it becomes eligible for premature withdrawal. But an investor can receive a principal amount with simple interest added according to post office saving account interest rates.
  • The invested amount in a fixed deposit account with 2 years of tenure and above reduction of 1% in interest proposed is carried out before the amount is given to the depositor.


Indian post office fixed deposit scheme provided by India post is for every Indian citizen. You can invest in this scheme individually or jointly and can earn good interest on the invested amount. Minors can also invest in this scheme under the supervision of their guardians. You can open an FD account in any Indian post office. Trust, NRIs, and organizations can not invest in the FD scheme. 

It is a government-supported scheme and guarantees good returns. The account under the FD scheme can be opened through online or offline mode. Premature withdrawal of funds is available in this scheme. 

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