Post Office FD Interest Rates 2026: Up to 7.5% – Time Deposit

Post office FD rates and maturity on ₹1 lakh

Term	Rate	₹1 lakh grows to
1 year	6.9%	₹1,07,081
2 years	7%	₹1,14,888
3 years	7.1%	₹1,23,508
5 years	7.5%	₹1,44,995

Rates for October–December 2026, compounded quarterly. Interest is paid out once a year; the maturity values assume you reinvest it at the same rate. Try other amounts with the FD calculator.

Time deposit at a glance

Post office time deposit key facts
Terms	1, 2, 3 or 5 years
Deposit	₹1,000 minimum, in multiples of ₹100; no maximum
Interest	Compounded quarterly, paid out every year
Who can open	Resident adults, singly or jointly (up to three); a guardian for a minor; a minor of 10 or more
Tax	5-year deposit under 80C (old regime); all interest taxable
TDS	Above ₹50,000 of interest a year (₹1 lakh for senior citizens)
Early closure	Not before 6 months; reduced interest after that
Where to open	Any post office, or online through India Post internet banking

Closing a time deposit early

Within 6 months: not allowed.
After 6 months, before a year: interest at the post office savings account rate (4%).
After a year: interest is reduced by 2 percentage points from the rate you would otherwise get.

If you might need the money, a shorter deposit or a recurring deposit may suit better than breaking a 5-year one.

Tax on post office FDs

Interest on every term is taxed at your slab rate. Only the 5-year deposit gives a deduction, under Section 80C (now Section 123 of the Income-tax Act, 2025), up to ₹1.5 lakh a year and only under the old regime. TDS is deducted once your interest from the post office crosses ₹50,000 in a financial year, or ₹1 lakh if you are a senior citizen; submit Form 15G (15H for seniors) if your income is below the taxable limit.

How to open and extend a time deposit

Open it at a post office with your Aadhaar, PAN, a photograph and the deposit, or online if you have a post office savings account with internet banking. You can choose to have the yearly interest moved into a recurring deposit, so it keeps earning.

At maturity the deposit can be extended for the same term at the rate then in force. Ask for the extension when you open it, or within 6 months of maturity for a 1-year deposit, 12 months for 2 years, and 18 months for 3 and 5 years.

Post office FD vs bank FD

Safety: the post office is backed in full by the government; bank deposits are insured up to ₹5 lakh per bank.
Rate: the post office often pays more than large banks for the same term. Compare today’s bank FD rates.
Senior citizens: banks pay seniors about 0.5% extra, the post office does not; seniors may do better in SCSS at 8.2%.
Tax saving: NSC pays 7.7% for 5 years and also counts for 80C.

Frequently asked questions

What are the post office FD interest rates for October–December 2026?

1 year: 6.9%, 2 years: 7%, 3 years: 7.1%, 5 years: 7.5%. The rate on the day you open the deposit is fixed for its whole term.

How much will ₹1 lakh become in a 5-year post office FD?

₹1,44,995 at 7.5%, compounded quarterly, if you leave the yearly interest to build up in a recurring deposit or savings account. The deposit itself pays out ₹44,995 of interest over the five years.

Can I break a post office FD early?

Not in the first 6 months. Between 6 and 12 months you get only the savings account rate. After a year, the interest is reduced by 2 percentage points.

Which post office FD gives a tax benefit?

Only the 5-year deposit, whose amount counts towards Section 80C under the old regime. The interest on every post office FD is taxable.

Is TDS deducted on post office FD interest?

Yes, when your interest from the post office goes above ₹50,000 in a financial year (₹1 lakh for senior citizens). Form 15G or 15H stops it if your income is below the taxable limit.

Is a post office FD safer than a bank FD?

Post office deposits are backed by the Government of India in full. Bank FDs are insured by DICGC only up to ₹5 lakh per depositor per bank.

Sources

Last checked on 6 October 2026. Rates for new deposits are reviewed every quarter; a deposit keeps the rate it was opened at.

Post Office Time Deposit (post office FD)