Did you know you can set up a fixed deposit account at a post office? India Post currently offers interest rates to the tune of 5.5-6.7 per cent on fixed deposits available in four maturity options, ranging from one year to five years. India Post - which has a network of more than 1.5 lakh post offices in the country - offers fixed deposit (also known as term deposit or time deposit) accounts in its designated branches in one-, two-, three- and five-year options, according to its website. The interest rates provided by the post office are slightly better compared to returns in the range of 4.90-6.2 per cent paid by top commercial banks in the country.
Here are the four fixed deposit options available at designated post office branches:
| Maturity Period (Lock-In) | Interest Rate |
|---|---|
| One Year | 5.5% |
| Two Years | 5.5% |
| Three Years | 5.5% |
| Five Years | 6.7% |
| (Source: India Post) | |
One can also set up a recurring deposit account at the post office. Currently, the interest rate applicable to the Post Office Recurring Deposit scheme - which comes with a lock-in period of five years - is 5.8 per cent.
The Post Office Time Deposit and Post Office Recurring Deposit accounts are part of the government's portfolio of nine small savings schemes, including the Kisan Vikas Patra certificates and the Sukanya Samriddhi scheme.
(Also Read: Compare Interest Rates Of Small Savings Schemes)
The government revises the interest rates applicable to the savings schemes from time to time. Recently, it decided to keep the savings scheme interest rates for the quarter ending September 30 unchanged at existing levels.
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