How to Open an FD Account in the Indian Post Office

The Government of India (GOI) is responsible for updating the rate of interest for Post Office Fixed Deposits. AS per the latest update, the rate of interests for the Post Office Fixed Deposits are listed below:

Benefits of Post Office Fixed Deposit

There are a host of benefits which can be enjoyed by investing in Post Office Fixed Deposit. These benefits can be listed as follows:

1. Tax Deducted at Source (TDS) is not chargeable on the interest earned
2. Easy money transferring facility from one post office to another
3. One of the safest investments as it is backed by the Government of India
4. Multiple FD accounts can be opened in any post office across the country
5. Attractive rate of interest
6. Nominal deposit terms wherein minimum deposit amount is Rs.1,000 only
7. Nomination facility available for Post Office Time Deposit (POTD) accounts
8. Joint FD accounts allowed with up to 3 members for each account

Eligibility Criteria for Post Office Fixed Deposit

The eligibility criteria for Post Office Fixed Deposit can be listed as follows:

Documents Requirements for Opening a Post Office Fixed Deposit

The following documents will be required to open a Post Office Fixed Deposit account in any post office across the country:

How to Apply for a Post Office FD

You can open a Post Office Fixed in any post office across India using both online and offline methods. Both the methods are discussed below:

1) Online Method - The Post Office Fixed Deposit account can be opened online by using the internet banking facility offered by the post office. The following steps should be followed:

Step 1: Visit the official e-banking portal of post office at ebanking.indiapost.gov.in.

Step 2: Use your registered ID and password to log in to the portal.

Step 3: Click on the 'Service Request' option under the 'General Services' tab.

Step 4: Follow the on-screen directions and click on the 'New Request' option to initiate the Post Office Fixed Deposit or Time Deposit opening request.

2) Offline Method - Alternatively, you can also visit your nearest India Post branch and collect the form for opening a new Post Office Fixed Deposit account.

Submit the copies of all the necessary document along with a duly filled up application form. The officials at the post office will guide you with further directions for the process.

Terms and Conditions in Regard to Premature Withdrawal Rules for Post Office FDs

Whether the tenure for your Post Office Fixed Deposit account is anywhere between 1 year to 5 years, in case of a premature withdrawal certain rules will be applicable. These rules are being pointed below:

1. A premature withdrawal will not be allowed at least for 6 months from the date of opening the Fixed Deposit account.
2. The rate of interest applicable on the invested amount will be at par with the Post Office Savings Account in case the withdrawal is made within 6 to 12 months from the date of opening the Post Office Fixed Deposit account.