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India Post, which operates the post offices in our country, offers post office FD interest rates of 6.90% – 7.50% p.a. for tenures ranging from 1 year to 5 years. The interest rate on Post Office Tax Saving FD is 7.50% p.a. for the general public. These FD schemes offer the highest form of capital protection and income certainty for the depositors as these are backed by the sovereign guarantee through the Union Ministry of Finance. Just like other small savings schemes, these FD schemes are operated by the National Savings Institute, which works under the Department of Economic Affairs, Union Ministry of Finance. As a result, Post Office Fixed Deposits (PO FD) are also known as National Savings Time Deposits.
Post Office Fixed Deposit Interest Rates
(w.e.f 1 July 2025 to 30 September 2025)
| Highest Slab Rate | 7.50% p.a. (for 5 years) |
| For 1 year | 6.90% p.a. |
| For 2 years | 7.00% p.a. |
| For 3 years | 7.10% p.a. |
| For 5 years (including tax-saving FD) | 7.50% p.a. |
Note: Interest rates as of 1 July 2025
Also check: Calculate the future value of your FD investments using our FD calculator
Note that unlike banks and most NBFCs, India Post does not offer higher interest rates on its Post Office FD schemes for senior citizens. Senior citizens seeking higher interest rates can opt for the Senior Citizens Savings Scheme.
Features of Post Office Fixed Deposit
|
Post Office Fixed Deposit (FD) Highlights |
|
| Tenure | 1, 2, 3 and 5 years |
| Minimum Deposit Amount | Rs 1,000 |
| Interest Rates | 6.90% p.a. for 1 year tenure |
| 7.00% p.a. for 2 year tenure | |
| 7.10% p.a. for 3 year tenure | |
| 7.50% p.a. for 5 year tenure | |
| Interest Payout | Annual |
| Interest Calculation | Compounded quarterly |
| Premature Withdrawal | Allowed after 6 months |
| Nomination Facility | Available |
Types of Post Office FD Schemes
National Savings Time Deposit Account
- Tenor: PO FD can be opened for periods of 1, 2, 3 and 5 years.
- Minimum Deposit Amount: The minimum deposit amount for this account is Rs 1,000 with further deposits to be made in multiples of Rs 100.
- Taxation: Any investment under a 5-year PO FD account is eligible for taxation benefits under Section 80C of the Income Tax Act.
- Interest: The interest on a PO FD account is payable on an annual basis. For the purpose of interest calculation, it is compounded on a quarterly basis. In case the account holder doesn’t withdraw their interest amount on the due date, they will not be eligible for any additional interest on the interest amount.
- Extension: The depositor can extend their PO FD account for another tenor on its maturity. They can extend the account within a prescribed period from the date of maturity which is as follows:
- 1 year PO FD account – within 6 months of maturity
- 2 year PO FD account – within 12 months of maturity
- 3/5 year PO FD account – within 18 months of maturity
There will be no change in the interest rate if the account gets extended.
- Premature Closure: Any deposit under a PO FD account can be withdrawn only after 6 months from the date of deposit. The following conditions are applicable in case of account closure:
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- If a 1 year PO FD account is closed after 6 months, the interest rate applicable on the deposit will be the same as a PO savings account.
- If a 2, 3 or 5 year PO FD account is closed after 1 year, the interest rate will be 2% less than the PO FD rate for the completed years while for the part period less than a year, the PO savings account rate will be applicable.
- Security/Collateral: A PO FD account can be either transferred or pledged as a security to several parties including:
- A housing finance company,
- Corporation, local authority or a government company,
- Cooperative bank/society, scheduled bank or the Reserve Bank of India
- Governor of a state or the President of India.
- Eligibility: It can be opened by any of the following individuals:
- An adult
- A guardian on behalf of a minor or a person of unsound mind
- A minor above 10 years in his/her own name
- A joint account holder (with up to 3 adults).
National Savings Monthly Income Account
- The National Savings Monthly Income Account provides the facility of monthly interest income for its depositors to manage their regular expenses.
- Tenor: This account can be opened for a period of 5 years.
- Minimum Deposit Amount: The minimum deposit amount for this account is Rs 1,000 with further deposits to be made in multiples of Rs 1,000.
- Maximum Deposit Amount: The maximum deposit amount is Rs 4.5 lakh for a single account and Rs 9 lakh for a joint account. The limit will be separate for an account opened by a guardian on behalf of a minor.
- Interest: The interest is payable at the end of a month from the date of opening the account and so on till maturity. If the interest amount due at the end of a month is not claimed by the depositor, it will not earn any additional interest on the interest amount. The interest income is also taxable for a depositor.
- Premature Closure: Any deposit under the National Savings Monthly Income Account account can be withdrawn only after 1 year from the date of deposit. The following conditions are applicable in case of account closure:
- If the account is closed after 1 year but before 3 years from the date of account opening, 2% of the deposit amount will be deducted.
- If the account is closed after 3 years but before 5 years from the date of account opening, 1% of the deposit amount will be deducted.
- Maturity: The maturity period for this account is 5 years. If the account holder dies before maturity, the account can be closed and the total amount will be refunded to their nominee or legal heirs. The interest will be payable up to the preceding month of the date of refund.
- Eligibility: It can be opened by any of the following individuals:
- An adult
- A guardian on behalf of a minor or a person of unsound mind
- A minor above 10 years in their own name
- A joint account holder (with up to 3 adults).
Post Office FD Calculator
Prospective depositors can check their Post Office FD maturity amount using the Post Office FD Calculator provided by Paisabazaar. They will have to enter the amount they wish to deposit, preferred investment tenure and the applicable FD interest rate for the chosen tenure to know the maturity amount of their investment.
Frequently Asked Questions (FAQs)
Q. What is the highest Post Office fixed deposit interest rate?
A. The highest Post Office FD interest rate is 7.50% for deposits maturing in 5 years. This rate applies from 1 October 2024 to 31 December 2024.
Q. In how many years FD will double in the post office?
A. At an interest rate of 6.9%, a post office fixed deposit investment will double in approximately 11 years.
Q. Which is better Bank FD or Post Office FD?
A. Both Bank FD and Post office FD are almost the same. But, there are certain features that are different between the two. Bank FDs are governed by individual banks, and so their interest rates vary per bank. Post Office FD is operated by post offices, and interest rates are adjusted at the start of each quarter. Bank FDs are available for as little as four days and as long as ten years. POFDs are available for 1, 2, 3, or 5 years of tenure. Post office FDs must be opened physically at a post office or a bank, whereas bank FDs can be created online. Besides, post office FDs are more secure as they are backed by the government.
Q. Can Post Office Fixed Deposit be opened online?
A. Yes. Customers need to have a valid single or joint Savings Account (B) to open Post Office Time Deposit online.
Q. What is the maximum deposit amount to open a time deposit account in a post office?
A. There is no maximum limit. However, the minimum amount required to open the FD is Rs 1,000.
Q. Is Post Office FD safe to invest in?
A. Yes. Investments made in Post Office term deposit account (fixed deposit) are India Post’s product and are offered under its National Savings Scheme. It is guaranteed by the Government of India and is thus safe to invest in.
Q. Is it possible to break the Post Office fixed deposit?
A. To break the FD, one should wait till 6 months from the date of opening the account. Post that, premature withdrawal is allowed.
Q. Can one avail loan against Post Office FD?
A. At present, this facility is not mentioned.
Q. How many members can open this FD jointly?
A. It can be opened with a maximum of 3 members.
Q. Can one claim 80C deductions for investment done in the post office time deposit account?
A. An investment made for a period of 5 years can be claimed for tax deductions u/s 80C of the Income Tax Act, 1961.
Q. Do I have to pay tax on investments made in Post Office fixed deposit scheme?
A. TDS is NOT charged on-time deposit/ fixed deposit or recurring deposit made in post offices. Footnote: Post Office Time Deposit Account is one of the nine account options offered by India Post under its National Savings Scheme. The scheme includes the likes of Public Provident Fund (PPF) Account, Senior Citizens Savings Account, etc.