Post Office FD Calculator 2023: Get Maturity Value of FD using Post Office Fixed Deposit Calculator

Categorization Of Post Office Fixed Deposit (FD) Applicants:

The applicants for the Post Office Time Deposit scheme are divided into three categories based on the total savings in all their individual savings accounts.

• Low Risk: Net balance is up to Rs.50,000
• Medium Risk: Total balance is above Rs.50,000 to Rs.10 lakh
• High Risk: Sum balance is above Rs.10 lakh

KYC Documents To Open Post Office Fixed Deposit (FD) Account:

Applicant, who wish to open a Post Office Time Deposit account must submit attested photocopies of the following documents:

• Identity proof (anyone)
  • Aadhaar Card
  • Electoral ID Card
  • Ration Card
  • Driving License
  • Post Office ID Card
  • Government-issued ID Card
  • Pension Payment Order (if applicable)
  • Below Poverty Line (BPL) Card (if applicable)
  • MGNREGA Card (if applicable)
  • ID Card issued by a valid educational institute
  • Permanent Account Number (PAN) Card (for medium-risk and high-risk customers)
• Residential proof (anyone)
  • Passbook issued by a bank or Post Office
  • Passport
  • Ration Card
  • Aadhaar Card
  • Electricity or Telephone bills (< 3 months old)
  • Salary slip issued by the employer
  • Certificate issued by a Branch Postmaster/Gram Dak Sewak Delivery Agent/Public Authority/Postman
• In the case of joint accounts, both the account holders must submit their respective ID and residential proofs.
• 1 recent color passport-size photograph of the applicant
• 2 recent color passport-size photographs, in case of Extra Departmental Branch Office (EDBO)

Eligibility Criteria To Apply For Post Office FD:

• An account may be opened by the individual.
• A joint account can be opened by two adults.
• The account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
• Minor after attaining the majority has to apply for conversion of the account in his name.

Comparison of Post Office FD to Bank FD:

Post Office FD and Bank FD are somewhat similar. Post Office FD can be opened in post offices only and Bank FD can be open in any public sector banks and private sector banks.

Minimum amount: One can open a Post Office FD with a minimum amount of Rs 200 with no limit on the maximum amount. Most of the banks offer FD having a higher minimum amount required.

Interest rate: Banks offer lower rates than Post Office FD’s. Hence the returns post inflation is lower than Post Office FD’s. Rs 1,00,000 invested in Post Office FD gives a higher interest rate than a Rs 1,00,000 invested in Bank FD. Also, the Post Office FD interest rates are aligned with government securities rates. Bank FD rates are controlled by the banks.

FAQs About Post Office Fixed Deposit (Time Deposit) Scheme:

• How to transfer my Time Deposit account from one Post Office branch to another?

You can either request a transfer of FD either through a written application or the form SB10(b).

• Can I prematurely break my Post Office time deposit account?

Yes, you can prematurely withdraw from the FD account only after the completion of 6 months of the FD tenure.

• What is the highest Post Office Time Deposit rate of interest available?

The highest Post Office TD rate is 7.7% p.a. for a tenure of 5 years.

• What is the range of FD maturities available on this deposit scheme?

The tenures available for Post Office FD are 1 year, 2 years,3 years, and 5 years.

• Can I avail tax exemptions on any of the Post Office TD tenures?

Yes, as per Section 80C of the Income Tax Act, 1961, you can get tax deductions for a Post Office time deposit with a maturity period of 60 months.

• Is PAN mandatory to open a Post Office Fixed Deposit account?

You must submit your PAN if you fall within the high-risk or medium-risk category. In the absence of a PAN card, you are required to submit Form 60 or 61.

• Where Can You Open an Account?

You can open the account in any of your nearest/ preferred post office.

• How to Open FD in Post Office?

The documents required for post office fixed deposit are:

• • An account opening form from your nearest post office
  • Two passport size photographs
  • Identity and address proof such as the Aadhaar card, driving license, passport, voter ID card, PAN card, ration card or declaration in Form 60 or 61 as per the Income Tax Act, 1961

Fill the form and submit the required documents in a post office.

• What is the Minimum and Maximum Deposit Limit?

With a minimum deposit of Rs. 200, you can open a time deposit account at any post office. And, there isn’t any maximum limit for this.

• How to redeem?

The deposit amount can be withdrawn at the end of the tenure. If not withdrawn then the maturity income is eligible for savings account interest for 2 years. Also, there is an option for the FD account to automatically renew for the same time period chosen.

• Can I transfer my Post Office FD account from the post office of one state to another?

Yes. Account opened in one place can be transferred to any other branch of the post office in the same state as well as in other states.

• Can myPost Office FD account be renewed after maturity?

Yes, it can be renewed after maturity and if the depositor does not withdraw money after maturity, the amount is reinvested in the same POFD but at the rate that is effective on the day of maturity.

• Do senior citizens get additional interest in Post Office FD?

No, the rate of interest remains the same for regular citizens and senior citizens. But they have a benefit for the interest received. Any interest received by senior citizens from deposits in Post Office would be tax-exempt up to Rs 50,000 under Section 80TTB.

• Can NRIs benefit from Post Office FD?

No, only Indian citizens are allowed to open POFD accounts. NRIs are not eligible for POFDs.

• Are loans provided against FD at Post Office?

Yes. FD account can be pledged as security against a loan.

• Does India Post impose any penalties for premature withdrawal of FD deposits?

Premature withdrawal or closure is permitted after completion of six months of opening the deposit. The account can be closed before one year and after 6 months of opening the account, in which case, the amount invested is returned without interest to the depositor. If withdrawn after, prematurely, interest will be paid only for the completed years. (In case of a bank FD, if a bank imposes penalties, the depositor will be paid interest at a lower rate than what was opted for).

• Can Post Office FD be opened online?

No. The scheme is not available online. At present, Post Office FD can be opened only by visiting the post office. The depositor has to go to the nearest post office or bank and open the account.

• I do not have an Aadhaar Card. Can I invest in POFD?

Yes. A depositor has to have only one identity proof to open the account. He has to submit an attested copy of his identity proof and show the original copy at the time of account opening for verification.

• Can minors open Post Office FD?

Minors aging 10 years or more can open a Post office Term Deposit account but they have to get it transferred in their name by applying for it when they become 18 years old. The rate of interest offered to minors is the same as that offered to regular citizens.