One can invest in post office FD by opening an account for a tenure of 1 year, 2 years, 3 years or 5 years. The minimum investment is Rs 1,000. The interest rate on post office FD schemes is reviewed every quarter. At present the interest is 6.9% for one year FD, 7% for two and three year FD and 7.5% for five year FD.
The government has made a major change in the fixed deposit rules of the post office. According to a notification issued by the Finance Ministry on November 7, 2023, the premature withdrawal rules for post office fixed deposits (also known as post office fixed deposits) have been revised. As per clarification from India Post, 5-year post office FD opened on or after November 10, 2023 cannot be closed earlier than 4 years from the date of opening of the FD. That means, withdrawal of money from 5 year FD can be done only after 4 years. Whereas, for FDs opened till November 9, 2023, the previous rules for premature withdrawal are applicable.
New rules for premature withdrawal from post office FD
The government has amended the premature withdrawal rules for post office FDs of different tenures. The new rules are as follows-
- Any post office FD cannot be withdrawn before 6 months from the date of deposit. At the same time, 5 year post office FD cannot be withdrawn before completion of 4 years.
- If a 1-year, 2-year or 3-year Post Office FD is withdrawn after 6 months but before one year from the date of deposit, the deposit will earn only Post Office Savings Account interest for that period which is significantly less. will be.
- If a 2-year or 3-year Post Office FD is prematurely withdrawn after one year, a penalty of 2% will be deducted from the interest rate applicable on 1-year or 2-year Post Office FD.
Old rules for premature withdrawal from post office FD-
- Old rules for premature withdrawal from post office FDs opened on or before November 9:
- Money cannot be withdrawn from any post office FD before the expiry of 6 months from the date of deposit.
- If 1 year, 2 years, 3 years or 5 years post office FD is withdrawn after 6 months but before one year from the date of deposit, then post office savings account interest will be given.
- If a 2-year, 3-year or 5-year Post Office FD is broken after 1 year, a penalty of 2% will be deducted from the interest rate applicable on 1-year, 2-year or 3-year Post Office FD.
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