If you’re wondering how much interest you can earn on Post Office FD by investing amounts between ₹10,000 to ₹50,000, you’re in the right place. Post Office Fixed Deposit (also known as Time Deposit) schemes are one of the safest and most trusted investment options in India, especially for conservative investors and senior citizens. Backed by the Government of India, they offer guaranteed returns and are perfect for short to medium-term savings.
In this article, we will break down the latest Post Office FD interest rates (April-June 2025), calculate the interest you can earn on different deposit amounts, and guide you on how to open a Post Office FD. Whether you’re saving for a short-term goal or looking for stable returns, this guide will help you make an informed decision.
Post Office FD Deposits of ₹10,000 to ₹50k
| Feature | Details |
|---|---|
| Interest Rates | 1-Year: 6.9%2-Year: 7.0%3-Year: 7.1%5-Year: 7.5% |
| Deposit Range Covered | ₹10,000 to ₹50,000 |
| Compounding | Quarterly |
| Minimum Investment | ₹100 |
| Maximum Investment | No upper limit |
| Tax Benefits | 5-Year FD eligible under Section 80C of the Income Tax Act |
| Official Website | India Post |
A Post Office FD investment of ₹10,000 to ₹50,000 can fetch you attractive interest returns, ranging between 6.9% to 7.5%, depending on the tenure you choose. It’s a safe, government-backed option that suits both first-time investors and those looking for capital protection and consistent earnings. With quarterly compounding and optional tax benefits for long-term deposits, Post Office FDs remain one of the most trusted instruments in India.
What Is a Post Office Fixed Deposit (FD)?
A Post Office Fixed Deposit, or Time Deposit, is an investment scheme offered by India Post under the National Savings Schemes (NSS). It allows you to invest a lump sum for a fixed tenure and earn a guaranteed return at a fixed interest rate.
The money you deposit earns quarterly compounded interest, which means the interest gets added to the principal every quarter, boosting your earnings.
This is ideal for people who want low-risk, fixed returns without worrying about market fluctuations. Plus, the 5-year deposit gives you tax deductions under Section 80C, making it even more attractive.
see also: Post Office Time Deposit Scheme: Earn Up to 7.5% Interest Safely in 2025
How Much Interest Will You Earn on ₹10,000 to ₹50,000?
Let’s look at how much you can earn depending on the tenure and amount. These figures are approximate and based on simple interest for clarity; actual returns will be slightly higher due to quarterly compounding.
1-Year Deposit @ 6.9%
| Deposit Amount | Approx. Interest Earned |
|---|---|
| ₹10,000 | ₹690 |
| ₹25,000 | ₹1,725 |
| ₹50,000 | ₹3,450 |
2-Year Deposit @ 7.0%
| Deposit Amount | Approx. Interest Earned (Yearly) |
|---|---|
| ₹10,000 | ₹700 |
| ₹25,000 | ₹1,750 |
| ₹50,000 | ₹3,500 |
3-Year Deposit @ 7.1%
| Deposit Amount | Approx. Interest Earned (Yearly) |
|---|---|
| ₹10,000 | ₹710 |
| ₹25,000 | ₹1,775 |
| ₹50,000 | ₹3,550 |
5-Year Deposit @ 7.5%
| Deposit Amount | Approx. Interest Earned (Yearly) |
|---|---|
| ₹10,000 | ₹750 |
| ₹25,000 | ₹1,875 |
| ₹50,000 | ₹3,750 |
Note: Due to quarterly compounding, your actual returns will be slightly higher.
How to Open a Post Office FD Account
Opening a Post Office Fixed Deposit is simple. Here’s a step-by-step guide:
Step 1: Visit a Post Office or Use Online Banking
You can open a Time Deposit account by visiting your nearest India Post branch or using India Post Internet Banking.
Step 2: Submit Required Documents
Keep the following documents ready:
- Aadhaar Card
- PAN Card
- Passport-size photo
- Post Office Savings Account (mandatory for online deposits)
Step 3: Choose the Tenure
Select between 1, 2, 3, or 5 years. You can also extend it upon maturity.
Step 4: Deposit the Amount
Minimum: ₹100. You can invest ₹10,000, ₹25,000, or ₹50,000 easily through cash, cheque, or transfer from your Post Office account.
Step 5: Collect Your Certificate
You will receive a Time Deposit Certificate as proof of investment.
Pro Tips for Investors
- Reinvest on maturity to enjoy compounding benefits over longer periods.
- Ladder your investments: Split ₹50,000 into different tenures to maintain liquidity and get better returns.
- Tax planning: Use the 5-year FD to claim up to ₹1.5 lakh under Section 80C.
- Senior citizens: Though there’s no special FD rate in Post Office TD, safety and stable returns make it a solid choice.
see also: Golden Time for Making FD Passed? Two Renowned Banks Have Taken a Strict Decision
Post Office FD Deposits FAQs
Q1. What is the minimum deposit for Post Office FD?
₹100 is the minimum. There is no upper limit.
Q2. Can I break the FD before maturity?
Yes, but only after 6 months, and the interest rate may be reduced.
Q3. Is TDS deducted on Post Office FD?
No TDS is deducted, but interest is fully taxable under your income slab.
Q4. Can I open an FD online?
Yes, through India Post Internet Banking, provided you have a Post Office Savings Account.
Q5. Which tenure is best for maximum returns?
The 5-year FD offers the highest interest rate (7.5%) and tax benefits under Section 80C.
