Fixed Deposit (FD) Scheme is an unrivaled secure and faithful savings scheme that remains with the Post Office in India. It is supported by the Government of India and ensures that it has guaranteed returns, flexible, structured tenures, and tax exemptions hence suitable to the risk-averse investors such as senior citizens, salaried people and small business owners.
Latest Interest Rates (July–September 2025)
The Ministry of Finance adjusts interest rates on a quarterly basis. Rates are as follows in the present period:
1-year FD: 6.90% per annum
2-year FD: 7.00% per annum
3-year FD: 7.10% per annum
5 year FD: 7.50% per annum (is deductible under Section 80C)
Such rates are determined at the time of investment and there is no fluctuation in the tenure giving stability even in market fluctuations.
How It Works
You can deposit as little as ₹1000 and invest in the whole and ₹100. It is a compound interest, but payable annually. In 5 years at 7.5% yield on an investment of ₹1,00,000 you would earn about ₹43,000 as a sum of interest earned.
Tax Benefits
Tax Under Section 80C of the Income Tax Act, only the 5-year FD bank account can have tax benefits. The maximum claim allows one to get ₹1.5 lakh in a financial year so it is a good option to use as tax planning.
Safety and Accessibility
Post Office FD can be purchased in every India Post Branch and in below chosen banks. The government guarantees that what you have invested is safe and premature withdrawal is permissible after six months but with a minor penalty.
Who Should Invest?
This program is ideal to individuals that are in need of constant income without being exposed to the market. Either it is to save a child education, retirement or simply wishing to store the money safe places and the FD Post Office is the place to give you piece of mind and some certain growth.
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