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The Indian Postal Service is one of the most widely spread postal systems in the world. Recently in 2015, the RBI granted approval to the Indian Postal Service to offer a number of banking related instruments to the people.
Since 2016, all post offices in India provide the following plans and saving schemes:
Such schemes are also known as special schemes and can be opened in any of the post office branches across India.
This is a simplefixed deposit schemewith attractive rate of interest and a wide range of benefits. Similar to a regular bank FD, the interest rate for each tenure for post office fixed deposit is fixed. The interests are paid annually but compounded quarterly. The minimum amount required to open this deposit scheme is Rs. 200 with no such limit on the maximum amount.
This is a fixed deposit which can be opened by any individual. Under this scheme, you are required to deposit a certain amount of money into the account and the interest is earned depending on the term of the policy and interest rate. This deposit has a maximum investment period of 5 years and you can easily close the account on a premature basis. Mentioned below are the interest rates with effect from 01.01.2019:
|Tenure (in months)||Rate of Interest (per annum)|
|Rate of Interest (per annum||7.0%|
The features of Post Office Special FD Schemes are:
The benefits of Post Office Special FD schemes are:
How can I break my FD in post office?
You will have to physically visit the branch and submit a declaration regarding premature withdrawal of your FD account.
Is Post Office FD taxable?
Yes, the interest paid is taxable, but TDS is not deducted by the post offices.
What is the process of FD in post office?
Simply visit the branch office and fill the application form for opening a new FD account. Submit the form and deposit the requested amount.
Is TDS deducted on the Post Office FD?
No, TDS is not deducted by the post office.