Post Office FD: National Saving Time Deposit Account (TD) is also known as post office FD. It is a guaranteed return scheme where one makes a one-time lump sum investment for the duration of the FD and gets the return in the form of interest at the completion of the scheme. Post office runs FD schemes of one-, two-, three-, and five-year durations. The interest rate for these FDs range from 6.9 per cent to 7.5 per cent. The interest rate is payable annually but calculated quarterly. The five-year FD is also known as tax saving FD. It provides tax relaxation of up to Rs 1.50 lakh on deposits under Section 80C of the Income Tax Act.
Know what will you get if you invest Rs 2 lakh each in Post Office FD's one-, two-, three- and five-year schemes. Before that, know a bit more about this post office guaranteed return scheme.
Post Office FD: Minimum and maximum investments
The minimum investment in the post office FD scheme is Rs 1,000 and in the multiples of Rs 100. There is no maximum limit. One needs to make a one-time investment at the beginning of FD.
Post Office FD: Interest rate
Interest rates for post office RDs as per its website are-
| Period | Rate |
| 1yr.A/c | 6.90% |
| 2yr.A/c | 7.00% |
| 3yr.A/c | 7.10% |
| 5yr.A/c | 7.50% |
Post Office FD: Who can open an account?
A single adult, up to three adults (in a joint account), a guardian on behalf of person of unsound mind, or a minor above 10 years in their own name can open an FD account.
Post Office FD: Extension and premature closure
On maturity of an FD, a depositor can extend their TD account for another tenure for which the account was initially opened.
However, one can not withdraw any deposit before the expiry of six months from the date of the deposit.
What Rs 2 lakh investment will give you in post office FDs
If you invest Rs 2 lakh in a one-year post office FD, you will get Rs 14,161 as interest at 6.9 per cent rate, and your maturity amount will be Rs 2,14,161.
If your have a Rs 2-lakh investment in the two-year post office FD, you will get Rs 29,776 as interest at a 7.0 per cent rate. Your maturity amount will be Rs 2,29,776.
If your investment in the three-year FD is Rs 2 lakh, you will receive Rs 47,015 as interest at the rate of 7.1 per cent, and your maturity amount will be Rs 2,47,015.
In a five-year FD, a Rs 2 lakh investment will give you Rs 89,990 as interest at the rate of 7.5 per cent and your maturity amount will be Rs 2,89,990.
