Maturity value of a post office time deposit at the current quarter's rates.
Post Office Time Deposit (FD) rates — Oct to Dec 2026
| Tenure | Rate | ₹1 lakh becomes |
|---|
| 1 year | 6.9% | ₹1,07,081 |
| 2 years | 7.0% | ₹1,14,888 |
| 3 years | 7.1% | ₹1,23,508 |
| 5 years | 7.5% | ₹1,44,995 |
- Interest is compounded quarterly and paid yearly.
- Minimum ₹1,000; no maximum.
- The 5-year TD qualifies for 80C deduction.
- Premature closure allowed after 6 months with reduced interest.
Rates change. The default rate is the one announced for the current quarter. You can type a different rate any time — the result updates instantly.
Compare with bank FDs and the post office RD.
How to use the post office FD (time deposit) calculator
- Enter the deposit — minimum ₹1,000, in multiples of ₹100, no maximum.
- Pick the tenure: 1, 2, 3 or 5 years. The rate fills in automatically (6.9%, 7.0%, 7.1%, 7.5%).
- Read the maturity amount; interest compounds quarterly and is credited yearly.
- Compare with the bank FD calculator at your bank's rate.
Step-by-step: ₹1,00,000 for 5 years at 7.5%
- Quarterly rate: 7.5 ÷ 4 = 1.875%.
- Quarters in 5 years: 20.
- Growth: 1.0187520 = 1.44995.
- Maturity: ₹1,44,995; interest ₹44,995 (about ₹9,000 a year).
The 5-year TD is the only tenure that gives an 80C deduction — the same tax benefit as a bank tax-saver FD, but at a rate many banks do not match.
Worked examples
| Situation | Working | Answer |
|---|
| ₹2,00,000 for 1 year at 6.9% | 2,00,000 × 1.017254 | ₹2,14,161 |
| ₹5,00,000 for 3 years at 7.1% | 5,00,000 × 1.0177512 | ₹6,17,538 |
| ₹50,000 for 2 years at 7.0% | 50,000 × 1.01758 | ₹57,444 |
Tips and common mistakes
- Interest is taxable at your slab but the post office does not deduct TDS on TDs — declare it in your return.
- No premature withdrawal in the first 6 months; between 6 and 12 months you get only savings-account interest (4%).
- A TD can be pledged as security for a loan, and is auto-renewed for the same tenure if you do not withdraw at maturity.
- For regular income instead of a lump sum at the end, compare with MIS (monthly) or SCSS (quarterly, 60+).
Sources & last reviewed
Small-savings interest rates notified quarterly by the Ministry of Finance (Department of Economic Affairs); this page uses the rate for the October–December 2026 quarter. Scheme rules follow the Government Savings Promotion Act, 1873 and the 2019 scheme rules. National Savings Time Deposit Scheme, 2019: 1-, 2-, 3- and 5-year deposits, interest compounded quarterly and paid yearly.
Official sources: India Post – savings schemes · National Savings Institute
Last reviewed: 17 October 2026. Rules and rates change — if you spot something outdated, tell us and we will fix it.
Frequently asked questions
What is the post office FD interest rate?
For Oct–Dec 2026: 6.9% for 1 year, 7.0% for 2 years, 7.1% for 3 years and 7.5% for 5 years, compounded quarterly.
Is a post office FD better than a bank FD?
Post office TDs are government-backed and the 5-year rate (7.5%) beats many large banks. Some small finance banks pay more, but with only ₹5 lakh deposit insurance.
Does the 5-year post office TD give tax benefit?
Yes, deposits in the 5-year TD qualify for deduction under section 80C. Interest is taxable.
Can senior citizens get a higher rate?
Post office TDs have one rate for all; seniors can use the Senior Citizen Savings Scheme at 8.2% instead.