- 7.5%5-year TD rate6.9% for 1 year
- ₹1,000Minimum depositMultiples of ₹100, no maximum
- 1 to 5 yearsTerms1, 2, 3 or 5 years
- ₹1.5 LTax deduction5-year TD, old regime
What is a Post Office Time Deposit (Post Office FD)?
A Post Office Time Deposit is a fixed deposit at the post office. You put in money once, for a fixed term of 1, 2, 3 or 5 years. The Government of India sets the rate, and it does not change during your term.
Interest is worked out every quarter and paid to you once a year. At the end of the term, you get your deposit back. The scheme runs under the National Savings Time Deposit Scheme, 2019.
- Step 1Deposit onceFrom ₹1,000, for 1, 2, 3 or 5 years.
- Step 2Get interest yearly6.9% to 7.5%, compounded quarterly, paid every year.
- Step 3Get the deposit backAt maturity, or extend for the same term.
Example: Ramesh, 45. He puts ₹2,00,000 in a 5-year Post Office TD at 7.5%. Every year, the post office pays him the interest. After 5 years, he gets his ₹2,00,000 back.
- He deposits
- ₹2,00,000
- Interest every year
- ₹15,427
- Interest in 5 years
- ₹77,136
Post Office FD interest rate 2026: up to 7.5%
These are the Post Office TD rates for October to December 2026. The Ministry of Finance reviews them every 3 months. The rate on the day you open your TD stays the same until maturity, even if the rates change later.
| Term | Rate a year | Effective yield | Interest a year on ₹1,00,000 |
|---|---|---|---|
| 1 year | 6.9% | 7.08% | ₹7,081 |
| 2 years | 7.0% | 7.19% | ₹7,186 |
| 3 years | 7.1% | 7.29% | ₹7,291 |
| 5 years | 7.5% | 7.71% | ₹7,714 |
- Compounded quarterly: interest is worked out every 3 months, and the interest for one quarter earns interest in the next. So the real yearly return, called the effective yield, is a little more than the rate.
- Paid yearly: the interest for each year is paid at the end of that year. It is not added to your deposit, so every year pays the same amount.
- Where it goes: you can take it at the post office, or have it credited to your post office savings account. From there it can also feed a Post Office RD.
Post Office TD rate history: the rates last changed in January 2024.
| Period | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| From January 2024 | 6.9% | 7.0% | 7.1% | 7.5% |
| From July 2023 | 6.9% | 7.0% | 7.0% | 7.5% |
| From April 2023 | 6.8% | 6.9% | 7.0% | 7.5% |
| From January 2023 | 6.6% | 6.8% | 6.9% | 7.0% |
| From October 2022 | 5.5% | 5.7% | 5.8% | 6.7% |
| From April 2020 | 5.5% | 5.5% | 5.5% | 6.7% |
Post Office FD maturity amount for 1, 2, 3 and 5 years
Total you get (deposit plus all the yearly interest) at the current rates, before tax:
| Deposit | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| ₹10,000 | ₹10,708 | ₹11,437 | ₹12,187 | ₹13,857 |
| ₹50,000 | ₹53,540 | ₹57,186 | ₹60,937 | ₹69,284 |
| ₹1,00,000 | ₹1,07,081 | ₹1,14,372 | ₹1,21,874 | ₹1,38,568 |
| ₹2,00,000 | ₹2,14,161 | ₹2,28,744 | ₹2,43,748 | ₹2,77,136 |
| ₹5,00,000 | ₹5,35,403 | ₹5,71,859 | ₹6,09,369 | ₹6,92,840 |
| ₹10,00,000 | ₹10,70,806 | ₹11,43,718 | ₹12,18,739 | ₹13,85,679 |
Ramesh's ₹2,00,000 in the 5-year TD, year by year:
| End of | Interest paid | Interest so far |
|---|---|---|
| Year 1 | ₹15,427 | ₹15,427 |
| Year 2 | ₹15,427 | ₹30,854 |
| Year 3 | ₹15,427 | ₹46,282 |
| Year 4 | ₹15,427 | ₹61,709 |
| Year 5 | ₹15,427 | ₹77,136 |
For your own amount and tax slab, use the Post Office TD calculator.
Post Office TD eligibility: who can open an account?
- Yes: A resident Indian adult, in their own name
- Yes: Up to 3 adults together, as a joint account
- Yes: A parent or guardian, for a minor or a person of unsound mind
- Yes: A minor aged 10 or more, in their own name
- No: NRIs (non-resident Indians)
- No: HUFs (Hindu Undivided Families)
- No: Trusts, companies and other institutions
You can open any number of TD accounts, of any term. In a Joint A account, the money is paid to all holders together. In a Joint B account, it can be paid to any one of them. A minor's account moves to their own name when they turn 18.
How to open a Post Office FD account: documents and steps
- Step 1Visit a post officeAny post office. With a linked post office savings account, you can also open it online.
- Step 2Fill in the formThe TD account opening form, also on the India Post website. Choose the term.
- Step 3Give KYC documentsAadhaar, PAN and a passport-size photo.
- Step 4Pay the depositIn cash or by cheque. With a cheque, the date it is cleared is the date of deposit.
- Step 5Add a nomineeSo your family can claim the money easily.
- Step 6Get your passbookIt shows the deposit, the term and the rate.
Documents to carry:
| Who | Documents |
|---|---|
| Everyone | Filled account opening form, Aadhaar, PAN, passport-size photo |
| Deposit over ₹50K | PAN is a must |
| Deposit over ₹10 L | Proof of where the money came from, such as a bank statement or sale deed |
| For a minor | Proof of the child's date of birth, and KYC documents of the parent or guardian |
| Joint account | KYC documents of every holder |
Post Office TD deposit rules
- Amount: at least ₹1,000, in multiples of ₹100. There is no maximum.
- One deposit: each TD account takes one deposit only. To add more money, open another TD.
- Term: 1, 2, 3 or 5 years, chosen when you open the account.
- Rate: the rate for your term on the day you open the TD, fixed until maturity.
Post Office FD premature withdrawal rules
You can close a Post Office TD early, but the interest is lower. These rules have applied since the G.S.R. 830(E) of 7 November 2023 change. For a ₹1,00,000 3-year TD:
- 2 or 3-year TD, closed after 1 year: the completed years earn the rate of the shorter TD less 2%. Closed after 1 full year, that is the 1-year rate less 2% (4.9% now). Closed after 2 full years, the 2-year rate less 2% (5.0% now). Extra months earn the savings rate.
- 5-year TD: it cannot be closed in the first 4 years. After that, the interest is at the savings account rate of 4%. On ₹1,00,000 closed at 4 years, that is about ₹16,000, against ₹30,854 at the full rate for the same time.
- Interest already paid: any yearly interest paid at the full rate is taken back from the amount you get.
- Older accounts: a TD opened before the November 2023 change follows the rules in force when it was opened. Ask your post office.
- To close early, give the closure application (Form-4) with your passbook at the post office.
Post Office TD maturity and extension
At maturity, you can take the deposit back, or extend the TD for the same term again. The extended TD earns the rate in force on the maturity date.
| TD term | Apply for extension within |
|---|---|
| 1 year | 6 months of maturity |
| 2 years | 12 months of maturity |
| 3 years | 18 months of maturity |
| 5 years | 18 months of maturity |
You can also ask for the TD to be extended when you open it, so you do not have to visit the post office at maturity.
Nominee, death of the account holder and transfer
- Step 1NomineeAdd one or more nominees when you open the TD, or later at the post office.
- Step 2If the holder diesThe nominee or legal heirs can claim the money at the post office.
- Step 3Moving cityTransfer the TD to another post office. The rate and term stay the same.
- Step 4PledgeA TD can be pledged as security for a loan, with the post office's approval.
Post Office FD tax rules and TDS
- ₹1.5 L5-year TD deductionSection 123 (earlier 80C), old regime
- TaxableInterestAt your slab rate, every year
- ₹50KSenior interest deductionOld regime, Section 153 (earlier 80TTB)
- 10% TDSIf interest is over ₹50KForm 121 stops it if your tax is nil
- On the deposit: only the 5-year TD gives a deduction under Section 123 (earlier 80C) in the old regime, up to ₹1,50,000 a year with your other eligible investments. At the 30% slab, Ramesh's ₹2,00,000 can cut his tax by up to ₹46,800 that year. The 1, 2 and 3-year TDs give no deduction.
- On the interest: TD interest is added to your income every year and taxed at your slab rate, in both regimes.
- Senior citizens: in the old regime, residents aged 60 or more can deduct up to ₹50,000 of bank and post office interest a year under Section 153 (earlier 80TTB).
- TDS: 10% TDS may be cut if your interest from the post office is more than ₹50,000 in a year (₹1,00,000 for senior citizens). Ramesh's ₹15,427 a year is below the limit, if it is his only post office interest. If your total income is below the taxable limit, give Form 121 (it replaced Forms 15G and 15H from April 2026). Any extra TDS comes back when you file your return.
Post Office TD: strengths and limits
- Yes: Backed by the Government of India
- Yes: Fixed rate for the whole term
- Yes: Start with just ₹1,000, no maximum
- Yes: 5-year TD saves tax in the old regime
- No: Interest is taxable at your slab rate
- No: Cannot be closed in the first 6 months
- No: 5-year TD locked for 4 years
- No: No higher rate for senior citizens
Post Office FD vs bank FD
| Post Office TD | Bank FD | |
|---|---|---|
| Rate | 6.9% to 7.5%, same at every post office | Set by each bank, different for each term |
| Terms | 1, 2, 3 or 5 years | Usually 7 days to 10 years |
| Interest paid | Every year | Monthly, quarterly or at maturity, as you choose |
| Senior citizens | Same rate for all | Usually a higher rate |
| Early closure | After 6 months; 5-year after 4 years | Usually any time, with a small penalty |
| Tax saving | 5-year TD, Section 123 (earlier 80C) | 5-year tax-saver FD, Section 123 (earlier 80C), no early closure |
| Safety | Government of India | Bank, with DICGC deposit insurance up to a limit per bank |
| TDS | 10% above ₹50K of interest a year | 10% above ₹50K of interest a year, per bank |
Compare the numbers on the Post Office TD calculator and the FD calculator.
Frequently asked questions
What is a Post Office Time Deposit?
It is the post office fixed deposit (post office FD). You deposit money once for 1, 2, 3 or 5 years at a fixed rate set by the Government of India. Interest is paid every year, and you get the deposit back at the end.
What is the Post Office FD interest rate in 2026?
For October to December 2026: 6.9% for 1 year, 7.0% for 2 years, 7.1% for 3 years, 7.5% for 5 years. The rate on the day you open the TD stays the same until maturity.
How much interest will I get on ₹1 lakh in Post Office FD?
₹7,081 for 1 year, and ₹7,714 a year in the 5-year TD, which is ₹38,568 over 5 years. These figures are before tax.
What is the minimum and maximum amount for Post Office TD?
The minimum is ₹1,000, and more in multiples of ₹100. There is no maximum. You can open any number of TD accounts.
Is Post Office FD interest paid monthly?
No. Interest is worked out every quarter but paid once a year. You can have it credited to your post office savings account every year. For a monthly income, the post office has the Monthly Income Scheme.
Can I close a Post Office FD before maturity?
Yes, but not in the first 6 months. Between 6 months and 1 year, you get the savings account rate of 4%. A 2 or 3-year TD closed after 1 year earns the rate for the completed years less 2%. A 5-year TD can be closed only after 4 years, and then earns the savings account rate.
Does the 5-year Post Office FD save tax?
Yes, in the old tax regime. The 5-year TD counts for the deduction under Section 123 (earlier 80C), up to ₹1,50,000 a year with your other eligible investments. The 1, 2 and 3-year TDs do not. The new regime has no such deduction.
Is TDS deducted on Post Office FD interest?
Yes, 10% TDS may be cut if your interest from the post office is more than ₹50,000 in a year (₹1,00,000 for senior citizens). If your total income is below the taxable limit, give Form 121, which replaced Forms 15G and 15H from April 2026.
Is there a higher Post Office FD rate for senior citizens?
No. The Post Office TD rate is the same for everyone. Senior citizens who want a higher rate at the post office can look at the Senior Citizens Savings Scheme.
Can I extend a Post Office TD after maturity?
Yes, for the same term, at the rate in force on the maturity date. Apply within 6 months of maturity for a 1-year TD, 12 months for a 2-year TD and 18 months for a 3 or 5-year TD. You can also ask for extension when you open the account.
Which is better: Post Office FD or bank FD?
They are close. The Post Office TD is backed by the Government of India and its rate is the same everywhere. Bank FD rates differ by bank and term, and banks often pay senior citizens more. Bank FDs usually allow early closure at any time with a small penalty. Compare the current rates before you decide.
Can I open a Post Office FD online?
Yes, if you have a post office savings account with internet banking or the IPPB mobile app linked to it. Otherwise, open it at any post office.