Post Office FD Interest Rates 2026
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In summary
- Post Office Time Deposit interest rates currently range from 6.9% to 7.5% p.a.
- The 1-year TD offers 6.9%, 2-year TD offers 7.0%, 3-year TD offers 7.1%, and 5-year TD offers 7.5% p.a.
- Interest is calculated quarterly and paid annually.
- The minimum investment is Rs. 1,000, and there is no prescribed maximum deposit limit under the current rules.
- A 5-year Post Office Time Deposit can qualify for a deduction under Section 80C, subject to the applicable income-tax provisions.
- Post Office TD interest is taxable according to the applicable income-tax rules.
- Interest rates for small savings schemes are reviewed by the Government periodically and may change from one quarter to another.
What is a Post Office FD?
Avoid these mistakes while booking FD
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A Post Office FD is commonly used to refer to the Post Office Time Deposit Account offered through India Post. It allows individuals to deposit a lump sum for a fixed period and earn interest at a rate applicable to the selected tenure.
Post Office Time Deposits are available for 1, 2, 3 and 5 years. The applicable interest rate is determined by the Government of India and may be revised periodically.
Unlike a conventional bank savings account, where funds can generally be accessed more freely, a Time Deposit is intended to keep the deposited amount invested for a specified period.
What are the Post Office FD interest rates in 2026?
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The applicable Post Office Time Deposit rates for 1 October 2026 to 31 December 2026 are:
Post Office FD tenure Interest rate 1 year 6.90% p.a. 2 years 7.00% p.a. 3 years 7.10% p.a. 5 years 7.50% p.a. The Government retained these rates for the October-December 2026 quarter.
Post Office FD interest rate for 1 year
The 1-year Post Office Time Deposit currently offers an interest rate of 6.90% p.a.
This option may suit individuals who want to keep their money invested for a relatively short fixed period while earning a government-notified rate.
Post Office FD interest rate for 2 years
The 2-year Time Deposit currently offers 7.00% p.a.
The deposit remains invested for two years, subject to the applicable premature-closure rules.
Post Office FD interest rate for 3 years
The 3-year Time Deposit currently offers 7.10% p.a.
This provides a fixed tenure longer than the 1-year and 2-year options, with the interest rate determined under the applicable small-savings framework.
Post Office FD interest rate for 5 years
The 5-year Time Deposit currently offers 7.50% p.a.
Among the four available Post Office TD tenures, the 5-year option currently carries the highest notified interest rate. A 5-year TD can also qualify for an income-tax deduction under Section 80C, subject to the applicable tax rules.
Post Office FD interest rates currently range from 6.90% to 7.50% p.a. across four fixed tenure options. These deposits combine government backing, annual interest payments, nomination, and a low minimum investment of Rs. 1,000. Bajaj Finance Fixed Deposit offers another fixed-return option, with flexible tenures and rates reaching 8.15% p.a. for senior citizens.
Calculate your expected investment returns with the help of our Fixed Deposit and Sukanya Samriddhi Yojana calculators.
How is Post Office FD interest calculated?
The interest on a Post Office Time Deposit is calculated quarterly but payable annually. The interest rate applicable to the account is determined according to the rules governing small savings schemes.
For example, if an investor deposits Rs. 1 lakh in a Post Office TD, the annual interest amount cannot simply be calculated by multiplying the deposit by the quoted rate and assuming that the interest is compounded annually. The quarterly calculation and annual payment structure need to be considered.
For a precise maturity calculation, the applicable Post Office calculation rules should be used rather than treating the advertised annual rate as a simple-interest rate.
What is the minimum and maximum investment in a Post Office FD?
The minimum amount required to open a Post Office Time Deposit is Rs. 1,000. Deposits can generally be made in multiples of Rs. 100.
There is no prescribed maximum deposit limit for a Post Office Time Deposit under the current rules.
Investors can select the deposit amount and tenure based on their financial requirements and the applicable Post Office rules.
What are the eligibility requirements for a Post Office FD?
A Post Office Time Deposit can generally be opened by:
- A single adult
- Joint account holders
- A guardian on behalf of a minor
- A guardian on behalf of a person of unsound mind, where permitted under the applicable rules
- A minor who has attained the prescribed age, subject to the applicable conditions
The account can be opened through an eligible Post Office by completing the required account-opening formalities and submitting the prescribed documents.
What documents are required to open a Post Office FD?
The exact documentation may depend on the applicant and the account type. Commonly required information and documents may include:
- Completed account-opening form
- Proof of identity
- Proof of address
- PAN, where applicable
- Aadhaar or another accepted KYC document
- Recent photograph
- Nomination details
- Payment details
Applicants should confirm the current KYC and documentation requirements with the relevant Post Office before opening an account.
What are the tax benefits of a Post Office FD?
The tax treatment depends on the type and tenure of the Time Deposit.
A 5-year Post Office Time Deposit can qualify for a deduction under Section 80C of the Income Tax Act, subject to the applicable provisions and the tax regime selected by the taxpayer.
However, the interest earned on a Post Office Time Deposit is generally taxable according to the applicable income-tax rules. Therefore, the tax benefit on the eligible 5-year deposit should not be interpreted as making the interest completely tax-free.
Tax treatment can vary based on the investor's circumstances and prevailing tax provisions.
Is Post Office FD interest taxable?
Yes. Interest earned on a Post Office Time Deposit is generally taxable according to the applicable income-tax provisions.
The investor's overall tax liability depends on factors such as:
- Total taxable income
- Applicable tax regime
- Amount of interest earned
- Applicable deductions and exemptions
- Tax rules prevailing during the relevant financial year
Investors should consider the post-tax return rather than looking only at the advertised interest rate.
Can a Post Office FD be closed prematurely?
A Post Office Time Deposit can be closed before maturity subject to the applicable rules.
Premature closure is generally subject to a minimum holding period and may result in the investor receiving a lower interest rate than the rate originally applicable to the deposit.
Therefore, investors considering a Time Deposit should account for their liquidity requirements before selecting the tenure.
The applicable premature-closure rules can change, so the latest India Post provisions should be checked before closing an account.
Can a Post Office FD be extended after maturity?
A Post Office Time Deposit can be continued or extended subject to the rules applicable to the relevant account and tenure.
The interest rate applicable to an extension may depend on the rate and rules prevailing when the account is extended. Therefore, investors should verify the applicable rate rather than assuming that the original rate will automatically continue.
Can a Post Office FD be transferred from one Post Office to another?
A Post Office Time Deposit may be transferred between eligible Post Offices in accordance with the applicable India Post rules.
The account holder may need to submit the prescribed request and supporting documents for the transfer.
Check out different FD Rates
Can I open a Post Office FD online?
India Post provides digital banking facilities for eligible Post Office Savings Bank customers. However, the availability of account-opening and Time Deposit-related services can depend on the account type, channel and applicable operational requirements.
Customers should check the current India Post digital-banking facilities or visit a Post Office for the latest process.
Post Office FD vs bank FD
Both Post Office Time Deposits and bank FDs allow investors to keep money invested for a predetermined period and earn interest. However, their structures and applicable rules differ.
| Parameter | Post Office Time Deposit | Bank FD |
|---|---|---|
| Provider | India Post | Banks |
| Available tenures | 1, 2, 3 and 5 years | Varies by bank |
| Interest rate | Government-notified | Determined by individual bank |
| Rate review | Periodically reviewed by Government | Determined by bank |
| Interest payment | Annual, with quarterly calculation | Depends on bank/product |
| Premature withdrawal | Subject to Post Office rules | Subject to bank rules |
| 5-year tax-saving option | Available, subject to Section 80C rules | Available through eligible tax-saving FDs |
| Maximum deposit | No prescribed maximum | Depends on bank/product |
The choice between the two depends on factors such as tenure, liquidity, interest rate, tax treatment and the investor's overall financial requirements.
Post Office FD vs other Post Office schemes
The Post Office offers several small savings schemes, each designed for different objectives.
| Scheme | Current interest rate | Typical tenure/structure |
|---|---|---|
| 1-year Time Deposit | 6.9% | 1 year |
| 2-year Time Deposit | 7.0% | 2 years |
| 3-year Time Deposit | 7.1% | 3 years |
| 5-year Time Deposit | 7.5% | 5 years |
| 5-year Recurring Deposit | 6.7% | 5 years |
| Monthly Income Account | 7.4% | 5 years |
| National Savings Certificate | 7.7% | 5 years |
| Public Provident Fund | 7.1% | 15 years |
| Senior Citizens Savings Scheme | 8.2% | 5 years |
| Sukanya Samriddhi Account | 8.2% | Long-term |
The rates shown above are applicable for the October-December 2026 quarter, where relevant.
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What are the benefits of a Post Office FD?
A Post Office Time Deposit has several features that may make it suitable for individuals seeking a structured fixed-income investment.
Government-notified interest rates
The interest rates are determined under the Government's small-savings framework and reviewed periodically. This provides a clearly defined rate for the applicable investment period.
Multiple tenure options
Investors can select from 1-year, 2-year, 3-year and 5-year Time Deposits.
No prescribed maximum deposit
There is no prescribed maximum investment limit for a Post Office Time Deposit under the current rules.
Tax-saving option
The 5-year Time Deposit can qualify for a Section 80C deduction, subject to applicable tax provisions.
Accessible through Post Offices
The scheme is available through the extensive India Post network, making it accessible to individuals who prefer dealing through a Post Office.
What are the limitations of a Post Office FD?
Before opening a Time Deposit, investors should also consider its limitations.
- The money is intended to remain invested for a fixed period.
- Premature closure is subject to specific rules.
- Interest income is generally taxable.
- Interest rates can change for new deposits when the Government revises small-savings rates.
- The rate applicable to an existing deposit generally depends on the rules governing that deposit rather than subsequent quarterly rate changes.
- Inflation can affect the real value of the returns over a long investment period.
How are Post Office FD interest rates decided?
Post Office Time Deposit rates form part of the Government's small savings schemes.
The Department of Economic Affairs reviews the interest rates periodically and notifies the rates applicable for the relevant quarter. For the quarter beginning 1 October 2026, the Government retained the rates applicable during the preceding quarter.
Consequently, Post Office FD rates may change when the Government announces a revision for a subsequent quarter.
Is Post Office FD a good investment option?
Whether a Post Office Time Deposit is suitable depends on an individual's investment horizon, liquidity needs, tax position and preference for fixed-income products.
It may be considered by individuals who:
- Prefer a fixed tenure.
- Want a government-notified interest rate.
- Have a defined investment horizon of 1 to 5 years.
- Want access to a Post Office savings product.
- Are considering the tax-saving provisions associated with a 5-year Time Deposit, subject to eligibility.
Investors should compare the post-tax return, tenure, liquidity and prevailing rates before selecting a fixed-income product.
Conclusion
Post Office Time Deposits can be considered by investors looking for a fixed-income option with government-notified interest rates and multiple tenure choices. However, it is also useful to compare these rates with other fixed deposit options available in the market before making a decision.
Bajaj Finance Fixed Deposit offers competitive interest rates of up to 7.75% p.a. for customers below 60 years and up to 8.15% p.a. for senior citizens, depending on the tenure and payout option selected. For comparison, the current Post Office 5-year Time Deposit rate is 8.15% p.a.
Bajaj Finance also offers tenures ranging from 12 to 60 months, along with monthly, quarterly, half-yearly, annual and maturity payout options. Its Fixed Deposits carry CRISIL AAA/STABLE and [ICRA]AAA(Stable) ratings.
Therefore, while Post Office TDs remain an option for investors who prefer small-savings products, comparing the interest rate, tenure, payout frequency, tax treatment, liquidity and credit ratings can help investors assess whether a Bajaj Finance FD is better suited to their financial requirements.
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Frequently Asked Questions
Overview
What is the highest Post Office FD rate today?
The highest Post Office FD rate is 7.50% p.a. for the five-year Time Deposit. This rate applies from 1 July to 30 September 2026 and may change following the next quarterly government review.
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.
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