Fixed deposits have traditionally been among the safest investment options for investors looking for guaranteed returns. Conservative investors have a range of FD options to choose from. If you’re interested in opening an FD account too, you can choose from alternatives such as bank FDs, FDs offered by non-banking finance companies, or even post office FDs.
What are post office FDs?
Post office fixed deposits, also known as post office term deposits, are simply FDs offered by the Indian Postal Services department. Being government backed investments, they are generally considered to be among the safest investment instruments available. This is because they come with the sovereign guarantee, that is, the guarantee of the government of India.
Other than this, post office FDs work much like regular FDs. They also offer you interest on your deposit. And you can make use of a post office fixed deposit calculator to calculate your interest and see how much your investment will grow over time.
What is the interest rate offered for post office FDs?
The interest rate on post office FDs is decided by the government of India. And it is generally revised every quarter. This is done as per the government’s Small Savings Scheme, and the rates vary based on the tenure of the deposit. Check out the latest interest rates in the table below.
| Period of deposit | Interest rate |
| 1 year | 5.5% |
| 2 years | 5.5% |
| 3 years | 5.5% |
| 5 years | 6.7% |
Here are some other key things to note about the post office fixed deposit scheme.
- The interest is payable annually but calculated quarterly.
- You need to deposit a minimum of Rs. 1,000.
- Thereafter, you can increase your deposit in multiples of Rs. 100.
- There is no maximum limit on investment.
How to calculate interest from post office FDs?
If you’re wondering how you can calculate the interest on your post office FD, a post office time deposit calculator can help you. This online tool calculates the interest that you will earn and the total maturity amount of your mind mapping tool investment. It’s simple and easy to use, and it saves you a lot of time. Using a post office FD calculator is fairly straightforward too.
You simply need to enter a few key details, and the post office fixed deposit calculator will compute the interest and/or the maturity amount for you. Here are the details you need to submit when you are using a post office time deposit calculator.
- The amount of investment
- The tenure of investment
- The rate of interest
When you submit these details, the online tool shows you how much interest you will earn over that tenure, and how your investment will grow over the years. It takes just a few minutes to use, and the best part is that you can make use of a post office FD calculator absolutely free of charge.
Conclusion
So, if you’re looking for a safe investment option, a post office FD is something you can consider. You can also use the FD calculator on Finserv MARKETS to check the interest you will earn from your investment.