The Indian Post Office is one of the safest investment avenues backed by the government. Several types of small savings schemes are available at multiple post offices across the country.
One such scheme is the Post Office Fixed Deposit, which you can open at your closest post office. You can start this deposit with as little as INR 1,000 and in multiples of INR 100, without any maximum limit.
This is a government-approved fixed deposit (FD). It has multiple options in tenure. These include one year, two years, three years, and five years. You can make the payment via cash, check, or digital transfer. Here are its few features:
- Interest calculation is done quarterly; it is paid annually
- Premature withdrawal facility is available six months after opening the deposit
- Tax deducted at source (TDS) is not applicable
- Portability between post offices is possible
- Convenience to open a joint account with up to three holders
Process to open a Post Office FD
You can start an account either online or offline with any post office close to your location.
Online route
You can open this fixed deposit online by using Internet banking. Here is how you can electronically open a Post Office FD:
- Use your registered ID and password to log in to ebanking.indiapost.gov.in; new users will first have to register on the portal
- Go to the ‘General Services’ section and pick the ‘Service Request’ option
- Click on the ‘New Request’ alternative and adhere to the guidelines
- Enter the details needed to complete the new account opening request
Offline method
Through this mode, you can open an account in the post office. Fill the account opening form and submit the mandatory details. Deposit the minimum amount to start the new account.
Documents required for account opening
The basic documents needed include:
- Identity proof, which can be Voter ID, driving license, or Aadhar card
- Permanent Account Number (PAN) copy
- Address proof like ration card, utility bill, or Aadhar card
- Two latest passport-size photographs
Benefits of Post Office FD
- Interest rates are pre-determined at the time of opening the account, which assures guaranteed returns
- Tax benefits are available under Section 80C of the Income Tax Act, 1961, if you hold the deposit for at least five years
- Government backing makes it a completely safe investment option
As per the FD eligibility norms, any individual aged 18 or more can open this account. Legal guardians can start a Post Office FD on behalf of minors.
Apart from Post Office FDs, you can consider investing in FDs offered by Mahindra Finance. The issuer offers competitive fixed deposit interest rates. Visit its website to know more!