Post Office FD interest rate

Post Office Fixed Deposit offers interest rates from 6.90% to 7.50% p.a. for general investors, with flexible tenures starting at 1 year up to 5 years.
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Post Office FD rates
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4 mins
27-April-2026

India Post offers Fixed Deposits (FDs) with interest rates ranging from 6.90% to 7.50% per annum, depending on the tenure, which can vary from 1 year to 5 years. For the Post Office Tax Saving FD, the interest rate is fixed at 7.50% p.a. for all individual investors.


However, if you are looking for higher returns without compromising on security, Bajaj Finance Fixed Deposits offer interest rates of up to 7.75% p.a., significantly higher than Post Office Time Deposits. You can start investing today and make your savings work harder. Book Your FD today!

Pro tip

Bajaj Finance offers attractive Fixed Deposit interest rates of up to 7.40% p.a. for non-senior citizens, and up to 7.75% p.a. for senior citizens, inclusive of an additional rate benefit of up to 0.35% p.a.

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Post Office FD Rate 2026

Post office FD is a preferred investment option for a safe investment avenue. These post office FDs are backed by the sovereign guarantee of the Government of India.

Post office offers FD interest rate ranges between 6.90% – 7.50% p.a. for a tenure of 1 year to 5 years. The Post Office FD interest rate on tax saving FD is up to 7.50% p.a. for general citizens.

 

Features of Post Office Fixed Deposit (Time Deposit Account)

Post Office Fixed Deposit, also known as Time Deposit, offers secure and guaranteed returns with flexible tenure options. It is backed by the Government of India, ensuring safety and reliability for investors.

ParticularsDetails
Tenure1, 2, 3 and 5 years
Minimum deposit amountRs. 1,000
Interest rates6.90-7.50% p.a.
Interest paymentAnnually
Mode of paymentCash/ cheque
Premature withdrawalAllowed after 6 months*
Nomination facilityAvailable


Interest rates from 1 July 2025 to 30 September 2025. Disclaimer: Bajaj Finserv refrains from endorsing, rating, or recommending any specific insurer or insurance product provided by insurers.

Fixed Deposit

  1. Trusted by over 5 lakh customers
  2. Fixed Deposits worth more than Rs. 50,000 crore booked
  3. Rated CRISIL AAA/STABLE and [ICRA]AAA(STABLE)
  4. Up to 0.35% p.a. extra interest offered for senior citizens
  5. Flexible interest payout options available - Monthly, Quarterly, Half-yearly, Annually or at Maturity

By proceeding, you agree to our Terms and Conditions

Post Office FD Interest Rate Table 2026

The Government of India (every quarter) decides post office fixed deposit interest rates under ‘Small Saving Schemes’. These rates are, in turn, determined as per the performance of government securities/ bills. A post office fixed deposit with a tenure of 5 years has an interest rate mark-up of 25 bps over the yield of comparable government securities.


 

Note: Interest rates will be effective from 1 January 2026 to 31 March 2026.

Tenure (years)Post office FD interest rates
1 yearup to 6.90% p.a.
 
2 yearsup to 7.00% p.a.
 
3 yearsup to 7.10% p.a.
5 yearsup to 7.50% p.a.


If you open a fixed deposit with the post office for a tenure of 5 years, you will be eligible to claim tax benefits under Section 80C of the Income Tax Act, 1961.

Here is a comparison of the latest FD interest rates post offices against those offered by Bajaj Finance Limited.

Tenure (years)Post office FD interest ratesBajaj Finance FD interest rates
1 yearup to 6.90% p.a.up to 6.95% p.a.
2 yearsup to 7.00% p.a.up to 7.20% p.a.
3 yearsup to 7.10% p.a.up to 7.75% p.a.
5 yearsup to 7.50% p.a.up to 7.75% p.a.


Senior citizens can get additional rate benefits of up to 0.35% p.a. 

If you want to earn higher returns of up to 7.75% p.a. on your Fixed Deposit, click here to book your Bajaj Finance FD today!


 

Post Office FD Returns Based on Investment Amount

Investment AmountFor 3 years with interest of 7.1%For 5 years with interest of 7.5
Rs. 50,000Rs. 61,830Rs. 72,665
Rs. 1 LakhRs. 1,23,661Rs. 1,45,320
Rs. 2 LakhRs. 2,47,322Rs. 2,90,659
Rs. 5 LakhRs. 6,18,304Rs. 7,26,647
Rs. 10 LakhRs. 12,36.608Rs. 14,53294


 

How to invest in Post Office FD?

You can invest in Post Office Fixed Deposit (FD) using either of the following methods:

Online Method:

  1. Download the India Post Mobile Banking app from Google Play Store.
  2. Log in to the app using your credentials.
  3. Click on the ‘Requests’ tab.
  4. Select ‘Open POFD Account’.
  5. Fill in the required details and submit the application.

Offline Method:

  1. Visit your nearest Post Office branch.
  2. Collect the Post Office FD application form.
  3. Fill in the required details and attach the necessary documents.
  4. Submit the application form along with the deposit amount.


 

Eligibility to Open a Post Office FD Account

Here are the eligibility criteria to open a Post Office Fixed Deposit (FD) account:

  • Any Individual.
  • A minor above 10 years of age on his/her name.
  • A guardian on behalf of a minor or a person of unsound mind.
  • NRIs, trusts, companies are not allowed to open post office FD account.


 

Documents Required to Open Post Office FD

To open a Post Office Fixed Deposit (FD) account, you will need to provide the following documents:

  • Proof of Identity: Aadhaar card, Voter ID Card, PAN Card, Driving License, Passport, etc.
  • Proof of Address: Aadhaar card, Utility bills (such as electricity bill, water bill), Ration Card, etc.


 

Types of Post Office FD Schemes

1. National Savings Time Deposit Account

  • Tenure: A Post Office Fixed Deposit can be opened for durations of 1, 2, 3, or 5 years.
  • Minimum Deposit Amount: The account can be started with Rs. 1,000, and additional deposits must be made in multiples of Rs. 100.
  • Taxation: Investments in a 5-year Post Office FD qualify for tax benefits under Section 80C of the Income Tax Act.
  • Interest: Interest is paid annually and compounded quarterly. If the interest is not withdrawn on time, no extra interest is earned on the pending amount.
  • Extension: The FD can be renewed after maturity within the following timeframes:
    • 1-year FD: within 6 months
    • 2-year FD: within 12 months
    • 3/5-year FD: within 18 months
      The applicable interest rate remains unchanged upon extension.
  • Premature Closure: Withdrawal is allowed only after 6 months:
    • For 1-year FD closed after 6 months, savings account interest rate applies
    • For 2, 3, or 5-year FD closed after 1 year, interest is reduced by 2% for completed years, while savings rate applies for shorter periods
  • Security/Collateral: A Post Office FD can be pledged or transferred as collateral to entities such as housing finance companies, banks, government bodies, or even the RBI.
  • Eligibility:
    • Adults
    • Guardians on behalf of minors or individuals of unsound mind
    • Minors above 10 years (self-operated)
    • Joint accounts (up to 3 adults)

2. National Savings Monthly Income Account

The National Savings Monthly Income Account (MIS) is designed to provide a steady monthly income for investors managing regular expenses.

  • Tenure: This account has a fixed tenure of 5 years.
  • Minimum Deposit Amount: The account can be opened with Rs. 1,000, with further deposits in multiples of Rs. 1,000.
  • Maximum Deposit Amount: The upper limit is Rs. 4.5 lakh for individual accounts and Rs. 9 lakh for joint accounts. Separate limits apply to accounts opened for minors.
  • Interest: Interest is paid monthly from the date of account opening until maturity. If not claimed, it does not earn additional interest. The interest earned is taxable.
  • Premature Closure: Withdrawal is allowed after 1 year:
    • Closure between 1 and 3 years results in a 2% deduction
    • Closure between 3 and 5 years results in a 1% deduction
  • Maturity: The account matures in 5 years. In case of the account holder’s death, the amount is paid to the nominee or legal heirs, with interest calculated up to the previous month.
  • Eligibility:
    • Adults
    • Guardians for minors or individuals of unsound mind
    • Minors above 10 years (self-operated)
    • Joint account holders (up to 3 adults)

Post Office FD: TDS implication/ taxation

One significant benefit of investing in post office FD is that (TDS*) isn't deducted on the interest earned.

While documenting Income Tax Return (ITR), one can add their investments of fixed deposit in post office to claim deduction u/s 80C of the Income Tax Act, 1961. The upper limit for deductions under the said section of the IT Act, 1961 is maxed at Rs. 1.5 lakh, every financial year.

Post office fixed deposit vs Bajaj Finance Fixed Deposit

Suppose you are thinking of redirecting the interest earned from the post office FD. In that case, you can consider an alternative option of investing in high-yielding companies that offer similar guarantees with zero to low risk on FD.

Even though post office FD may offer a higher interest rate than bank FD, it cannot match the interest rate provided by company FDs. You can ensure maximum returns on FDs guaranteed by well-financed and liquid companies like Bajaj Finance.

  • Investment rate – Bajaj Finance offers high FD Interest rates of up to 7.75% p.a., which is higher than any other fixed-income option given the current state of the economy. A post office FD will allow a maximum of up to 7.50% p.a., which can be further reduced if the government securities (G-sec) yield falls.
     
  • Flexibility – Bajaj Finance FD offers flexible terms for premature withdrawal (compared to post office FD). It also provides an option to avail of loan against FD at a marginal interest rate.
     
  • Ease of access – While a post office FD may not offer you many online features, you can easily invest in a Bajaj Finance online FD that enables you to reap the benefit of an end-to-end online paperless procedure. Additional features of doorstep document pickup, multi-deposit, and auto-renewal make it even more convenient. You can open a Bajaj Finance FD account by just using a debit card at a few locations.

Bajaj Finance also accepts deposits from NRIs and is rated high on the safety and stability ranking, making it one of the best investment options for those with a lower risk appetite. To help you compare the features of post office fixed deposit and Bajaj Finance Fixed Deposit.

Here is a table detailing the differences between the two:

FeaturePost office FDBajaj Finance FD
Quarterly interest rate revisionYesNo
Flexible premature withdrawalNoYes
Online account managementNoYes
Multi-deposit facilityNoNo
NRI FDNoYes


With a total deposit book size of more than Rs.50000 crores, you can trust Bajaj Finance FD to give you maximum returns at little to no risk.


Conclusion

Post Office Fixed Deposits remain a safe, government-backed investment choice in India, offering interest rates between about 6.90% and 7.50% per annum for tenures from 1 to 5 years. These low-risk FDs provide stability and guaranteed returns, with the 5-year term also qualifying for Section 80C tax benefits, making them suitable for conservative savers.

Fixed deposit variants

Highest Credit Ratings | Trusted with over 1.4 million Deposits | Assured Returns on FD
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Fixed Deposit - 60 Months

INTEREST RATES UP TO
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Fixed Deposit - Senior Citizen

INTEREST RATES UP TO
7.75% p.a.
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Fixed Deposit - Age below 60

INTEREST RATES UP TO
7.40% p.a.
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Fixed Deposit - Minor

INTEREST RATES UP TO
7.40% p.a.
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Fixed Deposit - HUF

INTEREST RATES UP TO
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Fixed Deposit - Sole Proprietor

INTEREST RATES UP TO
7.40% p.a.
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Frequently Asked Questions

What is the highest Post Office FD rate today?

The highest Post Office Fixed Deposit (FD) interest rate today is 7.5% per annum for a 5-year tenure. This rate is subject to periodic revisions by the government, making it a secure and attractive savings option.

In how many years will an FD double in the post office?

The time it takes for a Post Office fixed deposit to double depends on the interest rate. You can use the Rule of 72 to estimate it. Divide 72 by the annual interest rate to find the approximate number of years for doubling.

Which is better, Bank FD or Post Office FD?

The choice between Bank FD and Post Office FD depends on your financial goals and preferences. Both have their pros and cons, so it's advisable to compare the interest rates, tenure options, and other factors to make an informed decision.

Can Post Office Fixed Deposit be opened online?

Yes, you can open a Post Office Fixed Deposit online.

What is the maximum deposit amount to open a time deposit account in a post office?

There is no maximum limit to open a Post Office FD.

Is Post Office FD safe to invest in?

Yes, Post Office Fixed Deposits are considered safe and are backed by the Indian government. They offer capital protection and guaranteed returns.

Is it possible to break the Post Office fixed deposit?

Yes, you can prematurely withdraw a Post Office fixed deposit, but certain conditions and penalties may apply. It's advisable to check specific details for premature withdrawal before investing.

How many members can open this FD jointly?

In a Post Office Fixed Deposit, joint accounts can have a maximum of three account holders.

Can one claim 80C deductions for investments made in a Post Office time deposit account?

An investment held for a duration of 5 years is eligible for tax deductions under Section 80C of the Income Tax Act, 1961.

Do I have to pay tax on investments made in the Post Office fixed deposit scheme?

As per Section 80TTB of the Income Tax Act, for regular investors Post Office Fixed Deposit TDS is applicable, if the interest earnings exceed Rs. 50,000 annually.

Is post office FD 100% safe?

Security is a top priority in both cases. Post Office FDs come with sovereign backing from the Government of India, ensuring strong protection. Similarly, FDs from reputable and financially sound banks are also considered highly secure investment options.

What is 10 lakh FD in the post office?

A 10 lakh FD in the post office refers to a fixed deposit account opened at an Indian post office with a deposit amount of Rs. 10 lakh (one million rupees). This scheme offers guaranteed returns on your investment for a chosen tenure (typically 1, 2, 3, or 5 years). Interest rates are set by the government and are generally considered reliable, though they may not be the highest available.

What is senior citizen fixed deposit interest rates in Post Office?

The Post Office Senior Citizen Fixed Deposit offers interest rates that typically range from 6.9% to 7.5% per annum, depending on the tenure. These rates are subject to periodic revisions by the government and offer a secure investment option for senior citizens.

What is the highest interest rate on Post Office 1-year FD scheme?

The highest interest rate on the Post Office 1-year Fixed Deposit scheme is currently around 6.9% per annum. These rates are reviewed periodically and offer a secure, guaranteed return for short-term investments.

What is Post Office FD scheme interest rate for 5 years?

The interest rate for a 5-year Post Office Fixed Deposit scheme is around 7.5% per annum. This scheme also offers the added benefit of tax exemption under Section 80C of the Income Tax Act.

What is Post Office FD minimum deposit amount?

The minimum deposit amount for a Post Office Fixed Deposit scheme is Rs. 1,000.

Is Post Office 5-year FD tax free?

Yes, the Post Office 5-year Fixed Deposit is eligible for tax exemption under Section 80C of the Income Tax Act. The principal amount invested can be claimed as a deduction, but the interest earned is taxable.

What are the available FD tenures in Post Office?

Post Office Fixed Deposits offer flexible tenures of 1, 2, 3, and 5 years. Each tenure comes with a different interest rate, and the 5-year FD is eligible for tax benefits under Section 80C.

What is the highest interest rate Post Office Fixed Deposit offers?

The highest interest rate offered on Post Office Fixed Deposits varies based on tenure. Currently, the highest rate is available for a 5-year term, which offers an interest rate of 7.5% p.a., subject to periodic government revisions.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.