Difference Between Post Office FD Interest Rates and Bank FD Interest Rates 2025
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The Indian Postal department has been serving the people of India with their varied investment policies and products for a long. Here we are discussing the key differences between Post Office FD and Bank FD interest rates for 2025.
- Post Office FD Interest Rates 2025
- Post Office FD Interest Rates V/S Bank FD Interest Rates
- Key Aspects of Post Office FD Interest Rates 2025
- Features of Post Office Fixed Deposit Account
- Advantage of Post Office FD
- Post Office FD – Tax Benefits
- Eligibility Criteria for Opening a Post Office FD Account
- Documents Needed for Opening a Post Office FD Account
- Post Office FD Calculator
- Post Office FD Returns
- Process to Open Post Office FD
The Postal Department of India has been serving the people of the country with more than 1.5 lakh post offices across the nation with its widely distributed network. Not only does the Indian post department deliver couriers and posts, they have also been serving people with insurance services for a long time now. We have several Post Office schemes such as savings accounts, recurring deposit accounts, and fixed deposit accounts with good interest rates to choose from.
Further, the postal department of India also offers other investment policies such as Postal Life Insurance, Senior Citizen Savings Scheme, Small Savings Schemes, National Savings Certificate etc. for the benefit of the common people.
In this post, we are discussing the Fixed Deposit plans and Post Office FD rates in India.
Post Office FD Interest Rates 2025
The postal department of India offers FD investment plans with attractive returns. Depending on the tenure of the FD, which ranges from one to five years, the interest rates of post office FD plans are decided. The table below shows the updated Post Office interest rates.
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6.70 |
Unlike in banks, the Post Office FD schemes do not allow any additional interest to senior citizens as you can see in the table above. Hence, the earnings in post office interest rates are the same for everyone alike.
Post Office FD vs Bank FD Interest Rates – Comparison Of Post Office FD Interest Rates and Bank FD Interest Rates 2025
Below is a comparison of Post Office fixed deposit interest rate with that of interest rates on FDs offered by Indian banks
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Key Aspects of Post Office FD Interest Rates 2025
- The interest rates of Post Office FDs compounds quarterly and are paid annually
- Interest rate applied at the first deposit is constantly maintained all through the tenure of the FD
- A depositors can get the interest amount into their bank accounts directly
- If the policyholder doesn’t withdraw the corpus at maturity, he/she may not earn any interest on the final amount unless they extend the tenure
- However, in case the policyholder extends the tenure, the amount received at maturity will earn interest at the existing rate as on the date of extension
- The policyholder can submit an application form number 4 to make premature withdrawal from the FD account of Post Office after six months of starting account
- The account holder can submit application form number 3 for extension of the account if they want to extend the tenure after FD maturity
- In case of death of the account holder, the deposited amount is paid to the nominee
Features of Post Office Fixed Deposit Account
The basic features of Post Office fixed deposit interest rates table 2025 are mentioned below:
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Advantage of Post Office FDBelow are some of the factors which makes Post Office FD Scheme one of the ideal choices for many:
Post Office FD – Tax BenefitsThis is another huge advantage of investing in Post Office FD since the investor can get tax benefits under this scheme. No TDS is deducted on the post office FD interest earned. Post Office FDs are specially meant for people with low-income and thus these schemes are not levied with tax liability. However, if the interest amount earned by the investor in a financial year is above INR 40,000 for regular customers and INR 50,000 for senior citizens, they may be levied with TDS. For tax saving, an investor can claim for Post Office FD tax deduction under section 80C of Income Tax of up to INR 1.5 lakh per financial year. Eligibility Criteria for Opening a Post Office FD AccountTo be eligible for opening a Post Office FD Account, one has to be:
Documents Needed for Opening a Post Office FD AccountYou must provide the below-mentioned documents to open an FD account in a Post Office:
Post Office FD Calculator 2025Once you are sure about your investment in the post office FD scheme, it is better to use a post office FD calculator so that you know the FD interest rates. One can use the freely available online FD calculator to know the applicable interest rates of post office FD. All you need is to supply the tool with information such as the deposited amount, Post Office FD interest rate, and tenure of the FD to get accurate results. Post Office FD Returns
Process to Open Post Office FDThe Post Office Fixed Deposit account can be either opened online or via offline mode: Online ModeTo open an FD account in a post office, one can use the net banking facility. Below are the steps:
Offline ModeBelow are the steps for opening a Fixed Deposit account offline:
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Post Office Fixed Deposit Interest Rates
At present, the Post Office FDs provide a maximum interest rate of 6.70% interest for a tenure of five years.
It actually depends on the needs and requirements of individuals. However, the Post Office FDs are regarded as Small Savings Scheme and they allow comparatively better rates and returns as compared to FDs of banks.
Yes, Post Office FDs are safe as they are offered by government run post offices. Further, the Post Office FDs also come under the National Savings Scheme.
In most cases, the Post Office FD interest rate is high as compared to Bank FD interest. But it depends from bank to bank.
Yes, the Post Office allows customers to get loans against their FD amount.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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