If you are looking for a safe and secure investment, then a post office FD is the best option for you. The post office is the best option for small investors.
What is a Post Office FD?
The Post Office FD is basically a fixed-income savings scheme backed by the Government of India. It is also called the Post Office Time Deposit Scheme. You can invest a lump sum amount in this scheme for a fixed time period and get a secure and fixed return.
Interest Rates of Post Office FD (Oct–Dec 2025)
| Sr. No. | Tenure | Rate of Interest | Compounding Frequency |
| 01. | 1 Year Time Deposit | 6.9 (Annual Interest ₹708 for ₹10,000/-) | Quarterly |
| 02. | 2 Year Time Deposit | 7.0 (Annual Interest ₹719 for ₹10,000/-) | Quarterly |
| 03. | 3 Year Time Deposit | 7.1 (Annual Interest ₹729 for ₹10,000/-) | Quarterly |
| 04. | 5 Year Time Deposit | 7.5 (Annual Interest ₹771 for ₹10,000/-) | Quarterly |
FD Rates of Different PSU Banks
Here are some recent Fixed Deposit (FD) rates from various Public Sector Banks (PSBs) in India. The rates vary by bank, tenure, special scheme, etc., so treat this as indicative. If you want rates for a specific bank or tenure, I can pull those too.
| Sr. No. | Bank Name | Intrest Rates in %(p.a.) | |||
| Highest Rate | 1 Year Tenure | 3 Year Tenure | 5 Year Tenure | ||
| 1 | State Bank of India | 6.60 | 6.25 | 6.30 | 6.05 |
| 2 | Bank of India | 6.60 | 6.25 | 6.25 | 6.00 |
| 3 | Punjab National Bank | 6.60 | 6.25 | 6.40 | 6.25 |
| 4 | Union Bank of india | 6.60 | 6.40 | 6.60 | 6.40 |
| 5 | Indian Bank | 6.70 | 6.10 | 6.25 | 6.00 |
| 6 | Indian Overseas Bank | 6.75 | 6.60 | 6.20 | 6.20 |
| 7 | Punjab and Sindh Bank | 6.60 | 6.00 | 6.00 | 6.10 |
| 8 | Bank of Baroda | 6.60 | 6.25 | 6.50 | 6.40 |
| 9 | Bank of Maharastra | 6.70 | 6.20 | 6.20 | 6.10 |
| 10 | Canara Bank | 6.50 | 6.25 | 6.25 | 6.25 |
Key Features of Post Office FD
- A minimum deposit is Rs. 10000 only, which attract small invertors.
- 100% safety of your capital because it is backed by central government.
- Tax Benefit Only on 5-year FD under Section 80C.
- Interest is compounded quarterly and paid annually.
- Premature withdrawal is available after 6 month.
Eligibility for Post Office FD
- You should be resident of India.
- For joint FD up to 3 adults can be the account holder.
- A guardian can open a FD on behalf of minor.
- A Minor can open FD by his/her own name if age is 10 year or above.
Documents Required
To comply with KYC (Know Your Customer) norms and post office rules, you normally need to submit identity, address proof, and some supporting documents. Below is a typical list:
| Type of Document | Acceptable Documents |
| Proof of Identity (any one / as required) | Voter ID card Aadhaar card Driving License Passport PAN Card |
| Proof of Address (any one / as required) | Aadhaar (with address) Driving license Utility bills (electricity, water, gas) Post office issued ID / certificate Passport Bank statement NREGA job card (with proper signatures) Letter from National Population Register with name & address Ration card |
| Photographs | Two recent passport‑size photographs are required for opening FD. |
| Date of Birth / Age Proof (for minors) | Birth certificate or other proof of date of birth if you are opening on behalf of a minor. |
| Application / Account Opening Form | Fill the prescribed application or FD opening form at the post office. |
| Nominee details / Witness | You must provide name & details of nominee(s). Also, in many cases, a witness may need to sign when the deposit application is made. |
What is “Pledge” over a Post Office FD?
- To pledge your Post Office FD means using that FD (or your rights in that FD) as collateral/security for a loan or obligation, without breaking or liquidating the FD itself.
- You may not get 100% of the FD’s value as a loan. Lenders often give a margin up to 60–70% of the FD amount.
- It is a better option for those persons who need urgent money but don’t want premature withdrawal.
Example of Pledge
You hold a 3‑year Post Office FD of ₹1,00,000, opened 1 year ago. You need ₹60,000 as a short-term loan. A bank agrees to give you a loan of ₹60,000 by pledging your FD as collateral, charging interest at, say, 1.5% above FD rate. You do not encash the FD; it continues to earn interest as per its schedule.
Disclaimer: Interest rates given in the article are based on official information. They might be change with time or place, so please visit official website or discuss with your financial advisor before application.
FAQs on Post Office FD
Is there a minimum or maximum deposit?
- Minimum deposit amount: ₹1,000 (in multiples of ₹100 thereafter).
- There is no upper limit on how much you can deposit in a Post Office FD.
Can you withdraw before maturity?
- Yes, but only after 6 months from the date of opening.
- If withdrawn before 1 year, interest is paid at the post office savings account rate.
How often are interest rates revised?
- Post office reviews the interest rates quarterly.
- Interest is paid annually.
Can we get tax benefit?
Yes, 5‑year FD get tax benefit under Section 80C.