Post Office FD (Time Deposit) 2026
Post Office Time Deposit rates for 1, 2, 3 and 5 years, rules, premature withdrawal, tax benefit on the 5-year TD, and comparison with bank FDs.
Updated 30 September 2026 · 25 banks trackedWhat you need to know
The Post Office Time Deposit (POTD) is the post office’s fixed deposit, backed by the Government of India. Rates are notified every quarter; for July–September 2026 they are 6.9% (1 year), 7.0% (2 years), 7.1% (3 years) and 7.5% (5 years). Interest is compounded quarterly and paid yearly.
Post Office TD rates
| Tenure | Rate (Jul–Sep 2026) | ₹1 lakh grows to | Interest paid in year 1 |
|---|---|---|---|
| 1 year | 6.9% | ₹1,07,081 | ₹7,081 |
| 2 years | 7% | ₹1,14,888 | ₹7,186 |
| 3 years | 7.1% | ₹1,23,508 | ₹7,291 |
| 5 years | 7.5% | ₹1,44,995 | ₹7,714 |
Interest is compounded quarterly and paid annually; if it is withdrawn every year, the maturity will be lower. Rates for October–December 2026 are due to be notified around 30 September 2026.
Rules at a glance
| Rule | Details |
|---|---|
| Minimum | ₹1,000 and multiples of ₹100; no maximum |
| Accounts | Single or joint (up to 3 adults); minor above 10; guardian for minor |
| Interest | Calculated quarterly, paid annually; can be auto-credited to PO savings |
| Premature closure | Not before 6 months; after 6 months but before 1 year → PO savings rate; for 2/3/5-yr TD closed after 1 year → 2% less than the TD rate for completed years |
| Tax | 5-year TD qualifies for 80C / Sec 123 (old regime); interest taxable |
| Extension | Can be extended for the same tenure at the rate on maturity date |
POTD vs bank FD
| Feature | Post Office TD | Bank FD |
|---|---|---|
| Safety | Sovereign guarantee | DICGC up to ₹5 lakh |
| 1-year rate | 6.9% | ≈6.1% – 7.0% (regular) |
| 5-year rate | 7.5% | ≈5.85% – 7.0% |
| Senior citizen extra | None | +0.50% usually |
| Payout options | Annual only | Monthly to maturity |
| Online | Via IPPB / DoP internet banking | Net banking / app |
Frequently asked questions
Does Post Office give extra interest to seniors?
No, the TD rate is the same for everyone. Seniors should compare with SCSS.
Is Post Office TD interest taxable?
Yes, at slab rate. Only the 5-year TD gives a deduction on the principal (old regime).
Information is for education and comparison. Rates and rules change — confirm with your bank and a tax adviser before investing. FinancePortal is not a financial or tax adviser.