Post Office Fixed, Recurring Deposit Fetches These Returns
Post Office FD/RD Interest Rate: Designated post office branches offer fixed as well as recurring deposit accounts among the nine government-run small savings schemes. The interest rates applicable to the Post Office Time Deposit - also known as term deposit - and Post Office Recurring Deposit accounts are revised from time to time. For the quarter ending September 30, money in the term deposit accounts yields annual returns to the tune of 5.5-6.7 per cent, and 5.8 per cent in the recurring deposit accounts, according to the India Post website - indiapost.gov.in.
The interest rates provided by India Post - which has a network of more than 1.5 lakh post offices in the country - on four maturity options of fixed deposits are marginally higher compared top commercial banks, which currently pay returns in a range of 2.9-6.2 per cent. However, unlike the post office, commercial banks offer a much wider range of maturities for fixed as well as recurring deposits. (Compare Top Banks' FD Interest Rates)
Here are the current interest rates on fixed and recurring deposits provided by designated post office branches, and other key details:
Fixed Deposit Interest Rates
| Maturity Period (In Years) | Interest Rate |
|---|---|
| 1 | 5.5% |
| 2 | 5.5% |
| 3 | 5.5% |
| 5 | 6.7% |
| (Source: India Post) | |
Recurring Deposit Interest Rate
For the July-September period, interest at the rate of 5.8 per cent is paid on recurring deposits at the post office. The Post Office Recurring Deposit account comes with a lock-in period of five years.
(Also Read: Compare Interest Rates Of Small Savings Schemes)
Investment Limits
A Post Office Time Deposit account can be opened against the payment of a minimum Rs 1,000. A Post Office Recurring Deposit account can be set up against payment of a minimum Rs 100 per month. There is no upper limit for both accounts.
The government revises the interest rates applicable to the savings schemes from time to time. It retained the interest rates applicable to small savings schemes - such as the Post Office Time Deposit and the Post Office Recurring Deposit - at existing levels for the quarter ending September 30.
