What Are Post Office Fixed Deposits? What Are Its Benefits And Interest Rate?

Fixed Deposits (FDs) are one of the safest and greatest investments for seeking the right returns on your money placed. The postal service provides a variety of savings options, including competitive interest rates on Fixed Deposits. Because the government provides security, the money placed remains safe.
Post office fixed deposits, often referred as post office time deposits, are viable opportunities to bank fixed deposits. The Indian Postal Service's post office fixed deposit programmes give a guaranteed return and assist individuals in building wealth over a certain period of time. The Post Office Fixed Deposits offer significant investment returns based on the maturity period selected by the investors. To find out benefits and interest rates of post office fixed deposits, read on.

What Are The Benefits Of Choosing Post Office Fixed Deposits?

Following are the benefits of choosing post office fixed deposits -
Guaranteed Returns - The post office fixed deposit, being a government-backed savings programme, is one of the safest investment options available, with a guaranteed return.
Interest Rate Is Considerable - The post office fixed deposit pays 6.7 percent interest. In comparison to other investment plans, the interest rate given by POFD is more likely to result in better returns.
No Volatility - As being one of the safest investment options, post office fixed deposits give returns that are unaffected by market changes. This means that investors get the same interest regardless of market movements.
Other Benefits - The POFD plan allows investors to defer paying taxes on interest earnings. Furthermore, clients have the option of withdrawing the deposited funds early and taking out a loan against the value of the post office fixed deposit plan.

What’s The Eligibility Criteria?

An individual or joint post office term deposit account is opened by any Indian resident. Minors can also participate in a post office fixed deposit programme, which is administered by their legal guardian. NRIs, businesses, and trusts, on the other hand, are not allowed to invest in a Post Office Fixed Deposit account.

What Are The Required Documents?

These are the paperwork you have on hand when creating a post office savings account.
Address Proof - Telephone bill/electricity bill/passport/post office issued ID or certificate/bank statement including check as proof of address.
Identity Proof - PAN card, voter ID, driver's license, Aadhaar card, or passport are all acceptable forms of identification.

In addition, the subscriber must supply the beneficiary's information for the FD. It's also crucial for the subscriber to have a witness present while submitting the investment paper.

How Can A Person Invest In The Post Office Fixed Deposits?

Following are the ways in a person can invest in the post office fixed deposits -

ONLINE METHOD -

1. Install the Indian Post Mobile Banking app from the Google Play Store on the phone.
2. Use the credentials to access the app.
3. To create a Post Office FD account, go to the requests tab on the main screen.
4. To open the account, enter information such as the account's term, beneficiaries, deposit amount, the account out of which you wish to deposit the money, and so on.

OFFLINE METHOD -

1. Fill out the application form at the local post office with the necessary information. You may also get the application from the official website of the post office.
2. Along with the application form, attach all relevant papers.
3. Pay a visit to the post office where you set up your savings account.
4. To start a savings account, submit the form together with the requisite documentation to the appropriate person at the bank.

Endnotes

Both the policyholder and the company's obligations are protected by the nomination facility. Depending on the specific information supplied on the application form, the cash value would be handed out. If the nominee's information, including such name and address, changes, the information should be updated as soon as possible.

You may also like: A Detailed Comparison Of Fixed Deposits And Recurring Deposits

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.