In India, Post Office Fixed Deposit (POFD), sometimes also called Post Office Time Deposit, is a popular and safe investment option. Since the government backs this scheme, investors can rely on it. The Post Office revised the norms and interest rates of its fixed deposit program in 2025. We will learn in detail about Post Office FD 2025 interest rate, regulation and benefits in this post.
Important Details for Post Office FD
Investors get guaranteed returns under the Post Office Fixed Deposit program. This scheme is suitable for those who want to earn stable interest while protecting their money. The key points of Post Office FD 2025 are listed below:
| Parameters | Description |
| Interest Rate | 6.90% to 7.50% p.a. |
| Tenure | 1 year, 2 years, 3 years, and 5 years |
| Minimum Deposit | ₹1,000 |
| Maximum Deposit | No Limit |
| Tax Benefit | Under Section 80C only on 5-year FDs |
| Premature Withdrawal | Possible after 6 months |
| Interest Calculation | Quarterly Compounding |
Interest Rates for Post Office FD
For its fixed deposit programmes, the post office has set different interest rates for different tenures. These rates will be effective from January to March 2025
| Tenure | Interest Rate |
| 1 year | 6.90% |
| 2 years | 7.00% |
| 3 years | 7.10% |
| 5 years | 7.50% |
Special Note
- Senior citizens are not eligible for separate higher interest rates on Post Office FDs.
- Section 80C of the Income Tax Act provides the investor with tax exemption on five-year FDs.
Benefits of Post Office Fixed Deposit
- Safe Investment: Since this scheme is backed by the government, it is completely safe.
- Flexibility: It can be opened for a period of one to five years.
- Tax benefits: Five-year FDs are tax exempt.
- Nomination Facility: Nomination facility is available in this.
- Quarterly Compounding: Interest is compounded quarterly, thereby increasing returns.
- Premature Withdrawal: After six months, you can withdraw it if required.
Post Office FD open for
- The following people are eligible to open a Post Office Term Deposit Account:
- Minors can also open an Indian Citizen Account in their own name.
- It is also possible to open a joint account.
Bank FD vs Post Office FD
| Parameters | Post Office FD | Bank FD |
| interest rate | 6.90% – 7.50% | Varies as per bank |
| Security | Government-backed | Depends on the credit rating of the bank |
| Tenure | 1, 2, 3 and 5 years only | From a few days to 10 years |
| tax benefit | Only on five-year FDs | Available in some banks |
How to open Post Office FD
- Visit your nearest post office branch.
- Complete the application and send in the required paperwork.
- Deposit at least 1,000 Naira.
- Once the account is opened you will be issued a passbook.
Documents Required
- Address proof or Aadhaar or PAN card
- Passport size photo
Using the FD Calculator at the Post Office
You can use the FD calculator to determine how much interest you will earn on your deposit. For example:
For five years, if you invest ₹1,00,000, then:
Interest Rate: 7.50%
Total: ₹1,45,329
Source & Reference: https://www.hardinkhabar.com/post-office-fixed-deposit-2025/