Post Office Savings Schemes have been in existence since India’s independence and were meant to promote a habit of saving among citizens since their launch. If you are taking this traditional route to save, you can park your funds in the following schemes:
Read on to know the latest interest rates for Post Office FDs as per the tenure.
By knowing the latest rates, you can capitalise on your investment and save for future needs.
Keep in mind that your interest is computed every quarter and paid annually. Additionally, the rates vary based on the tenure. Check the table below to see what you stand to earn.
| FD Tenure | Post Office FD interest rates in 2024 |
|---|---|
| 1 year (12 months) | 6.90% |
| 2 years (24 months) | 7.00% |
| 3 years (36 months) | 7.10% |
| 5-year Tax -Saver FD (60 months) | 7.50% |
Disclaimer: These rates are valid up to March 31, 2024. Check the latest rates before you invest to ensure you are making the right choice.
The following are several beneficial features of this scheme:
You can start your investment for a period ranging between one and five years. That’s not all. You don’t have to wait to accumulate a lumpsum amount as you can start with just ₹1,000. Also, you can increase your investment in multiples of ₹100 with no upper limit.
You have the option to extend your account once it matures. If you choose to do so, you can continue the account for the same period as the original tenure. Simply follow the prescribed period to notify of your decision to do so:
Along with the high-interest rate of 7.50% on the 5-year FD, you can enjoy the advantage of exemptions u/s 80C.
You can close your FD account earlier than your chosen tenure if you need access to cash. However, this is permitted only after 6 months. In such cases, an interest penalty will apply depending on when you withdraw your investment.
Anyone can open an account. You can have your own or have a joint account. That’s not all. Minors can have an account by themselves if they are above the age of 10 years and guardians can also open one on their behalf.
You can open as many as account you want. You can even go for the laddering technique and ensure liquidity while maximising your returns.
These benefits allow you to grow your money and secure your financial future with ease. However, make sure you check the prevailing rates of other deposits before investing. This will help ensure you get the best returns.
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It depends on the following factors:
The best tenure depends on your financial goals, as the rates vary with the term. Consider the following details while deciding:
Till March 2024, you can get returns between 6.90% and 7.50%, depending on the tenure.
Yes. The scheme is backed by the Government of India.
No. The maximum interest you can get is 7.50%.
There is no upper limit on the amount you deposit in this scheme. However, you can increase the amount only in multiples of ₹100.
This scheme can be a good option because of the following reasons:
