How to Open an FD Account in the Indian Post Office

Post Office Fixed Deposit Interest Rates

The Government of India (GOI) is responsible for updating the rate of interest for Post Office Fixed Deposits. As per the latest update, the rate of interests for the Post Office Fixed Deposits (Effective 1 January 2026) are listed below:

Benefits of Post Office Fixed Deposit

There are a host of benefits which can be enjoyed by investing in Post Office Fixed Deposit. These benefits can be listed as follows:

• Tax Deducted at Source (TDS) is not chargeable on the interest earned
• Easy money transferring facility from one post office to another
• One of the safest investments as it is backed by the Government of India
• Multiple FD accounts can be opened in any post office across the country
• Attractive rate of interest
• Nominal deposit terms wherein minimum deposit amount is Rs.1,000 only
• Nomination facility available for Post Office Time Deposit (POTD) accounts
• Joint FD accounts allowed with up to 3 members for each account

Eligibility Criteria for Post Office Fixed Deposit

You can open a Post Office Fixed Deposit (FD) account if you meet any of the following conditions: 

• You are an Indian citizen. 

• Your age should be 10 years or more. 

• A parent or legal guardian can open an account for a minor (less than 10 years) 

The following are not eligible to open a Post Office Fixed Deposit (FD) account: 

• Non-Resident Indians (NRIs) 

• Trusts 

• Companies

Documents Requirements for Opening a Post Office Fixed Deposit

The following documents will be required to open a Post Office Fixed Deposit account in any post office across the country:

How to Apply for a Post Office FD

You can open a Post Office Fixed in any post office across India using both online and offline methods. Both the methods are discussed below:

1) Online Method: 

Step 1: Log in to the official website of India Post Internet Banking portal using your User ID and password. 

Step 2: Go to the section ‘General Services’ and select ‘Service Requests’. 

Step 3: Click on option ‘New Request’ to initiate a new service request. 

Step 4: Select TD Account (Time Deposit) and choose Open a TD Account (Fixed Deposit). 

Step 5: Enter the deposit amount, select the desired tenure, and choose the savings account from which the funds will be debited. 

Step 6: Carefully review all the details, especially the deposit amount and tenure, to ensure they are correct before proceeding. 

Step 7: Enter your transaction password and click ‘Submit’ to complete the request.  

2) Offline Method:

Step 1: You can visit your nearest India Post branch and collect the form for opening a new Post Office Fixed Deposit account.

Step 2: Submit the copies of all the necessary document along with a duly filled up application form.

Step 3: Pay the required amount through cash, cheque, or demand draft.  

Step 4: After your deposit is successfully processed, you will receive a receipt confirming your Fixed Deposit (FD).

How to Calculate Post Office FD Interest? 

Your interest is added every three months (quarterly compounding). You get the full amount at maturity, but your money keeps growing during the term as interest is added on both deposit and earned interest. 

Terms and Conditions in Regard to Premature Withdrawal Rules for Post Office FDs

Whether the tenure for your Post Office Fixed Deposit account is anywhere between 1 year to 5 years, in case of a premature withdrawal certain rules will be applicable. These rules are being pointed below:

• A premature withdrawal will not be allowed at least for 6 months from the date of opening the Fixed Deposit account.
• Withdraw between 6 and 12 months after opening the account, and you'll earn the Post Office Savings Account rate instead of the FD rate.