Post office FD: Fixed deposit is a small savings, guaranteed return scheme, where one gets return on one-time investment. People who don’t want to invest in market-linked programmes, and want to invest in nearly risk-free options also opt for FDs. Senior citizen who want a regular income post retirement also invest in senior citizen FDs, which also offer a higher interest rate than offered to general citizens. Post office, banks and small finance banks run FD schemes of different durations. The Post office FD is also known as National Savings Time Deposit Account (TD). The scheme offers 1-year, 2-year, 3-year and 5-year FDs.

The benefit of investing in a five-year FD is that it also provides income tax benefits on deposits of up to Rs 1.50 lakh in a financial year under Section 80C of the Income Tax Act, 1961.

The interest rate in the post office FDs are as follows.

One can have a single or a joint account (up to 3 adults) in the post office FD.

A guardian on behalf of a minor,  a guardian on behalf of person of unsound mind, and a minor above 10 years can open an account in their own name.

The interest is payable annually but calculated quarterly.

The minimum investment in the post office FD is Rs 1,000 and in the multiples of Rs 100. While there is no maximum limit for investment.

Here’s what Rs 2 lakh, Rs 3 lakh, and Rs 3 lakh investment in post office will give you in return

In the 1-year post office FD, the interest rate is 6.9 per cent, a Rs 1 lakh investment will give you Rs 7,081 in interest and Rs 1,07,081 in maturity.

A Rs 2 lakh investment will give Rs 14,161 in return and Rs 2,14,161 in maturity.

A Rs 3 lakh investment will give Rs 21,242 in return and Rs 3,21,242 in maturity.

In the 2-year post office FD, the interest rate is 7.0 per cent, a Rs 1 lakh investment will give Rs 14,888 in interest and Rs 1,14,888 in maturity.

A Rs 2 lakh investment will give Rs 29,776 in returns and Rs 2,29,776 in maturity. 

A Rs 3 lakh investment will give Rs 44,665 in return and Rs 3,44,665 in maturity.

In the 3-year post office FD, the interest rate is 7.1 per cent, a Rs 1 lakh investment will give Rs 23,508 in interest and Rs 1,23,508 in maturity.

A Rs 2 lakh investment will give Rs 47,015 in interest and Rs 2,47,015 in maturity.

A Rs 3 lakh investment will give Rs 70,523 in interest and Rs 3,70,523 in maturity.

In the 5-year post office FD, the interest rate is 7.5 per cent, a Rs 1 lakh investment will give Rs 44,995 in interest and Rs 1,44,995 in maturity.

A Rs 2 lakh investment will give Rs 89,990 in interest and Rs 2,89,990 in maturity. 

A Rs 3 lakh investment will give Rs 1,34,984 in interest and Rs 4,34,984 in maturity.