Post Office Fixed Deposit (FD) is one of the safest and trusted options for investment in India. The scheme is supported by the government, which provides capital security and stable returns to investors. In 2025, the post office FD has caught investors’ attention due to their attractive interest rates.
In this article, we will discuss the interest rates of Post Office FD 2025, its benefits, and why it is considered better than other bank FD schemes. Also, how this plan works and what is the process to invest in it will also explain it in detail.
Post Office FD 2025: Chief Information
Post Office FD is also called “National Savings Time Deposit”. This scheme is ideal for those who want to protect their money while avoiding risk.
The main features of post office fd
- Interest Rates: 6.90% to 7.50% per year.
- Terror: 1 year, 2 years, 3 years and 5 years.
- Minimum Investment: ₹ 1,000.
- Maximum investment: No limit.
- Tax Benefits: Tax exemption under section 80C on 5 years FD.
- Risk-free: Scheme supported by government.
Post Office FD vs Bank FD
| Speciality | Post Office FD | Bank fd |
| Interest rates | 6.90% – 7.50% | 3.00% – 7.85% |
| Official guarantee | Yes | No |
| Tax Benefits (80C) | Only 5 year old fd | Only on tax saving fd |
| Minimum investment | ₹ 1,000 | ₹ 1,000 |
| Maximum investment limit | No limit | Limit limit by bank |
| Risk level | Zero | At least medium |
Post Office FD interest rates (2025)
The table below has the interest rates of post office FD for various term:
| Tenure | Interest Rate (%) per year |
| 1 year | 6.90% |
| 2 years | 7.00% |
| 3 years | 7.10% |
| 5 years (tax saving) | 7.50% |
Example of interest calculation and returns
If you invest an amount of ₹ 2 lakh in the post office FD, then you will get the following returns:
| Investment amount (₹) | Tenure | Interest rate (%) | Maturity amount (₹) |
| ₹ 2,00,000 | 3 years | 7.10% | ₹ 2,47,322 |
| ₹ 2,00,000 | Five years | 7.50% | ₹ 2,90,659 |
Benefits of Post Office FD
1. safe and reliable
The post office is a scheme supported by FD government. Your deposit is completely safe.
2. Tax Benefits
A tax exemption of up to ₹ 1.5 lakh is given under Section 80C on FD with a duration of 5 years.
3. Flexibility
You can choose a term according to your requirement – from 1 year to 5 years.
4. Easily available
This scheme is available in all post offices across the country. You can open it in both online or offline methods.
FD opening process
Offline procedure
- Go to your nearest post office.
- Submit the required documents like Aadhaar card, PAN card etc.
- Pay minimum ₹ 1,000.
- Fill the application form and submit it.
Online process
- Download India Post Mobile Banking App.
- Login and select the option “Open Pofd Account”.
- Fill and submit the required details.
Taxation rules on fd
- If your interest is more than ₹ 40,000 (₹ 50,000 for senior citizens) then TDS will be deducted.
- Tax saving FD (5 years) offers discounts under section 80C on investment amount.
- Senior citizens get interest tax-free of up to ₹ 50,000.
Why is the post office FD better?
- More interest rates than bank FDS.
- Risk-free due to government guarantee.
- Easily available in both rural and urban areas.
- Tax profit option.
Noted things before investing
- There is a tax benefit on FD with a duration of only 5 years.
- Premature withdrawal can be penalty.
- Interest income is taxable.
conclusion
Post Office FD is a safe and attractive investment option that provides high interest rates and government guarantee. This is especially suitable for those who want stable returns while avoiding risk. However, assess your financial status and goals before investing.
Disclaimer
This article is written only for the purpose of providing information. Seek expert advice before investing. Post office FD’s interest rates may change from time to time.
