Post Office FD Scheme : The Post Office is a trusted financial avenue where small and middle-class investors can invest their savings and earn good profits. Money invested in the Post Office Fixed Deposit (FD) Scheme remains completely secure and offers stable returns.
If you also want to earn good profits through Post Office investments, here is the complete information in English, along with how to invest.
Post Office FD Scheme
The Post Office FD Scheme is fully secured by the Government. It offers multiple investment tenure options. In the Post Office Fixed Deposit Scheme, you can invest for periods ranging from 1 year to 5 years. The longer the investment period, the higher the returns.
One of the biggest advantages is that the 5-year FD qualifies for tax benefits under Section 80C of the Income Tax Act.
This makes it not only a safe investment but also a tax-saving instrument.
Calculation: ₹3,00,000 Investment in Post Office FD
If an individual invests ₹3,00,000 in a Post Office FD for 5 years, the returns would be as follows (based on the current interest rate of 7.5% p.a., compounded):
- Total maturity amount: ₹4,14,126
- Total interest earned: ₹1,14,126
This calculation is based on compound interest. Interest rates are revised by the government from time to time, so actual returns may vary slightly.
Loan Facility on Post Office FD
The Post Office FD Scheme is not just for savings and investment—it also provides a loan facility when needed.
- You can get a loan of about 60% to 90% of your FD amount.
- The exact limit depends on Post Office rules.
- Loan interest is usually 1% to 2% higher than the FD interest rate.
This facility is very helpful during emergencies when you need funds but do not want to break your FD.
Why Should You Invest in Post Office FD?
Post Office FD is ideal for investors who want:
- Safe and government-backed investment
- Guaranteed returns
- No market risk
- Flexible tenure options
- Tax benefits (5-year FD)
- Loan facility against deposit
It is especially suitable for small and middle-class investors looking for stable wealth growth.
How to Invest in Post Office FD Scheme
Investing in the Post Office FD Scheme is simple. Follow these steps:
1. Visit Your Nearest Post Office
Go to any branch of India Post with your KYC documents.
2. Fill the FD Application Form
Ask for the Time Deposit (FD) Form and fill in details such as:
- Name
- Address
- Investment amount
- Tenure (1–5 years)
- Nominee details
3. Submit KYC Documents
You need:
- Aadhaar Card
- PAN Card
- Address Proof
- Passport-size photos
4. Deposit the Investment Amount
You can deposit via:
- Cash
- Cheque
- Demand Draft
Minimum deposit usually starts from ₹1,000 and can be increased in multiples.
5. Receive FD Certificate / Passbook
After processing, you will receive an FD receipt or passbook as proof of investment.
Online Investment (If CBS-Enabled Post Office)
If your post office account is linked to Core Banking:
- Log in to India Post Internet Banking
- Select Time Deposit (FD)
- Choose tenure and amount
- Confirm transaction