This FD Offers Higher Returns And Govt Guarantee: Check Latest Interest Rates

It is very beneficial for investors to invest in post office as it does not only offer higher returns but greater safety too. India Post has been functioning in various parts of the country and offers attractive post office fixed deposit with interest rates varying from 5.50% to 6.70% for periods that may range from 1 year to 5 year.

It is worth mentioning that general public can avail an interest rate of 6.70% p.a. on tax saving fixed deposit. These FDs offer great certainty to investors as they give investors capital protection. These FDs are supported by sovereign guarantee via the Union Finance Ministry.

1. How Post Office FDs are operated?

India Post's fixed deposit schemes are operated by National Savings Institute, functioning under the Economic Affairs Department, Union Ministry of Finance. Post Office Fixed Deposits are also popularly known as National Savings Time Deposit. So, investors are going to get plenty of additional benefits by investing in an FD at the nearest post office. Investors are bound to receive government guarantee when they invest their hard-earned money in these FDs. Investors will receive interest rates on these FD on quarterly basis. According to the website of India Post, it is not a difficult task to start an FD in the post office. You can seek all possible information at the website of Post Office.

2. Benefits of India Post FD

These FDs are guaranteed by government and offer certain returns at higher interest rates. The money of investors get highest safety. You can start these FDs either offline or online. Citizens can invest in more than 1 FD. You can seek income tax benefits as well if you start an FD for a tenure of 5 years. You can seek tax exemption when you file your ITR. You can also transfer these FDs as per your convenience from one post office to another whichever is near you. Citizens can start their FDs by making cash payment or depositing a cheque. A minimum deposit of Rs 1000 is what it takes to start an FD.

3. Interest rates

The interest rates vary from 5.50% to 6.70% depending on the tenor you choose. Investors can earn an interest rate of 5.50% for FDs for the tenure of 7day-1year. The same interest rate will be given for FDs for the tenor of 1 day- two years.

Meanwhile, FDs for the tenor of up to 3 years can fetch you an interest rate of 5.50. FDs for the tenor of 3 years-5 years, can fetch you 6.70% interest rates. The interest payout is annual. Interest will be compounded quarterly. Premature withdrawals are allowed after 6 months. Nomination facility is available.

Highest Slab Rate	6.70% p.a. (for 5 years)
For 1 year	5.50% p.a.
For 2 years	5.50% p.a.
For 3 years	5.50% p.a.
For 5 years (including tax-saving FD)	6.70% p.a.