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All you need to know about Post Office FD interest rates in 2021

A fixed deposit allows investors to invest for a certain time period, during which the investment is locked in, in return for guaranteed returns either at maturity or every quarter. A fixed deposit offers customers a number of advantages.

 A fixed deposit (FD) offers customers higher interest rates than they would get if they were to keep their money in a savings account. In addition, FDs are considered to be a low-risk investment due to the fact that the money is invested with a financial institution that offers assured returns, opposed to a security like the stock of an individual company that is susceptible to factors such as company performance, company perception, public image as well as government regulation and seasonal trends.

Post-Office FDs

While FDs are most commonly known to be offered by banks, post offices also offer FD schemes to customers. A post office FD , also known as a Post Office Time Deposit Account, functions in a similar fashion to those offered by banks. Some investors consider them to be more secure since they are technically backed by the government of India as it is responsible for post office operations.

Post office FDs offer a number of advantages. In addition to offering guaranteed returns due to being government-backed, the FD also has a low level of volatility. Furthermore, post office FD rates are also something worth considering. You can calculate the interest rate of post office FDs through an online calculator, based on the amount you are looking to invest. In the article, however, we will break down the post office FD interest rate set for 2021.

The Post Office Interest Rates for 2021.


The tenure for a post office FD ranges from one year to five years. Accordingly, the int rate of post office FD rates have been set.

  1. 1-3 year rate: If you are looking to invest in a post office FD for one year, the interest rate you will receive as a Non-Senior Citizen is 6.90% per year. If you were to invest 100,000 in a post office FD for one year, you would have 106,900 at the end. The same per annum rates apply for a 2 and 3-year tenure as well.
  1. 5-year rate: If you are looking to invest in a five-year post office FD however, the interest rate you are afforded increases, going up to 7.70% per year. Meaning, if you were to invest Rs. 100,000 in the FD for 5 years, you would have Rs. 144,903 at the end of the tenure.



 A key point to note is that since the interest rate of post office FDs remains the same from one to three years, the benefit is from the time period, meaning you while you get 106,900 at the end of a one year FD, you would get 120,700 from a 3 year FD. A post office FD is a low-risk investment that you could add to your portfolio in order to achieve greater diversification and reduce net risk. If you are looking to invest in an FD, the Finserv MARKETS has a number of offerings from numerous companies, allowing you to pick the best FD scheme for you. Visit the Finserv MARKETS website to know more.

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