Credit Score powered by our Bureau Partners

Get your FREE Credit Score & Report in just 2 minutes

Post Office Fixed Deposit Interest Rate 2025

The Post Office FD interest rate ranges from 6.9% to 7.5% per annum, offering a secure and low-risk savings option. Investors can choose flexible tenures from 1 to 5 years, with the 5-year FD eligible for tax benefits under Section 80C. Backed by the government, it ensures guaranteed returns.

Post Office Fixed Deposits (FD) Key Highlights

Interest rates (p.a)

6.90% - 7.50%

Minimum Deposit

₹1,000

Maximum Deposit

No Limit

Tenure

1, 2, 3 and 5 years

Compounding

Quarterly

Senior Citizen

Upto 7.50% p.a.

Post Office Term Deposit Schemes have been a trusted choice for Indian investors. Backed by the Government of India, these schemes offer guaranteed returns with complete security, making them an ideal solution for risk-averse individuals looking to grow their savings.

One of the biggest advantages of Post Office Term Deposits is their flexibility. With tenure options ranging from 1 year to 5 years, they cater to both short-term and long-term financial goals. These schemes not only deliver assured returns but also provide features that suit various financial goals, from saving for the future to creating a regular income stream. Whether you are a salaried individual, a senior citizen, or someone planning for tax savings, Post Office Term Deposits are a dependable and rewarding investment option.

Latest Post Office FD Interest Rates for 2025

Interest rate on National Savings Time Deposit Account (TD):A traditional fixed deposit scheme with multiple tenure options.

Fixed Deposit Tenure	Interest Rate (Annual)	Compounding Frequency*
1 year	6.9%	Quarterly
2 years	7.0%	Quarterly
3 years	7.1%	Quarterly
5 years	7.5%	Quarterly

Note: The 5-year FD qualifies for tax deduction under Section 80C of the Income Tax Act.

Interest rate on National Savings Monthly Income Account (MIS): Provides a steady monthly income to help meet regular financial needs.

Fixed Deposit Tenure	Rate
5 years	7.4% p.a. – paid on a monthly basis

Interest Rate on Senior Citizens Savings Scheme Account (SCSS):A special scheme designed for senior citizens, offering higher interest rates and tax-saving benefits.

Fixed Deposit Tenure	Rate
5 years, can be extended for a period of 3 years	The interest rate is 8.2% per annum, payable from the date of deposit until 31st March, 30th September, or 31st December, whichever comes first. Thereafter, the interest will be paid on a quarterly basis on 1st April, 1st July, 1st October, and 1st January.

Key Features of Post Office Fixed Deposit

The Post Office Fixed Deposit, also called Post Office Time Deposit, is a government-backed investment scheme that offers guaranteed returns and flexible investment terms. Here's what makes it a preferred choice for risk-free savings in India:

1. Reliable Government-Backed Savings Option

Since this scheme is run by India Post under the supervision of the Government of India, it ensures high security for your investment. It’s ideal for individuals who prioritize capital protection and stable returns.

2. Flexible Deposit Tenures

You can choose how long you want to invest with options of 1 year, 2 years, 3 years, or 5 years. Each option comes with a fixed rate of interest that stays unchanged for the entire term.

3. Stable and Fixed Interest Rates

Interest is fixed at the time of opening the account and is not affected by market changes. This helps investors plan their returns with confidence.

The 5-year plan currently offers the highest interest among all durations.

4. Quarterly Interest Compounding

The scheme follows a quarterly compounding system, which boosts the final maturity value. Even though the interest is calculated every three months, the full amount is paid out only when the FD matures.

5. Low Entry Barrier

Starting your investment is easy—you can begin with as little as ₹1,000 and deposits can be made in multiples of ₹100 thereafter. There’s no maximum limit, so investors can choose the amount based on their financial goals.

6. Tax Benefits for Long-Term Investors

If you invest in a 5-year Post Office FD, you become eligible for tax deduction under Section 80C of the Income Tax Act. You can claim up to ₹1.5 lakh annually as part of your tax-saving investments.

7. Multiple Account Types Available

The scheme supports different account formats, such as:

Individual account (Single holder)

Joint account (up to 3 adults)

Minor’s account (either by guardian or directly in the minor’s name)

8. Early Withdrawal Option

In case of emergencies, funds can be withdrawn after 6 months, though the interest paid will be lower than the original rate if withdrawn before maturity. No early withdrawal is allowed within the first 6 months.

9. Portability Across India

If you move to a different location, you can easily transfer your FD account to any other post office branch, making the scheme convenient for working professionals and retirees alike.

10. Nomination Facility Available

You can nominate a family member or beneficiary at the time of opening the account, so your savings are passed on without legal complications in the event of your demise.

Types of Post Office Fixed Deposit Schemes

1. National Savings Time Deposit Account (TD)

The Post Office Time Deposit Account (TD) is a secure and flexible fixed deposit scheme offering annual interest with government-backed reliability. This scheme is ideal for individuals seeking safe, long-term savings with annual returns and tax-saving benefits.

Key Features:

Interest Payment: Interest is payable annually but calculated quarterly.
Deposit Amount:Minimum deposit is ₹1,000 (in multiples of ₹100), and there is no maximum investment limit.
Account Tenure:Available for 1 year, 2 years, 3 years, and 5 years.
Who Can Open:
- Single adult
- Joint account (up to 3 adults)
- A guardian acting on behalf of a minor or an individual with an unsound mind
- Minors aged 10 years and above in their own name
Number of Accounts: No limit on the number of accounts one can open.
Tax Benefit: Investments in the 5-year TD qualify for deductions under Section 80C of the Income Tax Act, 1961.

Maturity:
The deposit amount is repayable after 1, 2, 3, or 5 years, depending on the chosen tenure.
Accounts can be extended for the same tenure upon maturity.

Premature Closure: Allowed after 6 months, with nominal penalty charges.

2. National Savings Monthly Income Account (MIS)

The Post Office Monthly Income Scheme (MIS) is a fixed deposit scheme that provides a regular monthly income, ideal for those looking for steady earnings. This scheme is a great option for individuals seeking regular income with low-risk investment.

Key Features:

Interest Rate: 7.4% per annum (effective from 01.01.2024), payable monthly.
Deposit Amount:
- Minimum: ₹1,000 (in multiples of ₹1,000).
- Maximum: ₹9 lakh for a single account and ₹15 lakh for a joint account (up to 3 adults).
- An individual’s share in joint accounts cannot exceed ₹9 lakh.
Who Can Open:
- Single adult
- Joint account (equal share for all holders)
- A guardian acting on behalf of a minor or an individual with an unsound mind
- Minors aged 10 years or above can open an account in their own name.

Interest Payout:

Interest is payable monthly and can be credited directly to a savings account via auto-credit or ECS.
Unclaimed interest does not earn additional interest.

Premature Closure: Allowed after 1 year with deductions:

Maturity:

The account matures in 5 years. In case of the account holder's death, the amount is refunded to the nominee/legal heirs with interest paid up to the preceding month.

Senior Citizens Savings Scheme Account (SCSS)

The Senior Citizens Savings Scheme (SCSS) is a savings plan aimed at senior citizens, especially retirees, looking at earning a regular income with their retirement benefits. It is a government-backed scheme and offers a safe investment. It offers quarterly returns which enjoy tax benefits under Section 80C.

Key Features:

Interest Rate:8.2% per annum (effective from 01.01.2024), payable quarterly on 31st March, 30th June, 30th September, and 31st December.
Deposit Amount:
- Minimum: ₹1,000 (in multiples of ₹1,000).
- Maximum: ₹30 lakh across all SCSS accounts held by an individual.
Who Can Open:
- Individuals aged 60 years or above.
- Retired civilian employees aged 55 to 60 years (investment must be made within 1 month of retirement benefits).
- Retired defense employees aged 50 to 60 years (investment within 1 month of retirement benefits).
- Account can be opened individually or jointly with a spouse (entire deposit is attributed to the primary account holder).

Interest Payout: Paid quarterly and can be credited via auto-credit or ECS to a savings account.

Premature Closure: Allowed anytime after opening, with nominal penalty charges.

Maturity: The account matures in 5 years and can be extended for an additional 3 years within 1 year of maturity.

Disclaimer: The process to apply, and all other information specified above are as of when this page was written and are subject to change. For exact information, contact the bank or refer to the official website.

Eligibility & Documents Required

Eligibility

Indian Resident Individuals
Joint Accounts (up to 3 persons)
Minors above 10 years in their name

Documents Required:

Aadhaar Card (mandatory for KYC)
PAN Card
Passport-size Photograph
Address Proof (Voter ID/Utility Bill)
Filled FD Account Opening Form

How to Start Investing in a Post Office Term Deposit Account?

Opening a Post Office Term Deposit (POTD) Account is a simple and straightforward process. Follow these steps to get started:

Visit the Desired Post Office:

Collect and submit the following duly filled and signed documents:

Account Opening Form
KYC Form (for new customers or modifications)
PAN Card
Aadhaar Card (or any one of these alternatives: Passport, Driving License, Voter ID, MNREGA Job Card, or National Population Register letter).
A valid proof of date of birth, such as a birth certificate, is required to open a minor account.

Special Cases:

KYC documents must be provided for each individual when opening a joint account.
For Minor Accounts, the guardian’s KYC details are required. Upon reaching adulthood, the account holder must submit fresh KYC documents and a new account opening form to convert the account.

Investment Above ₹10 Lakh:

As per the Prevention of Money Laundering Act (2002), proof of the source of funds is mandatory.

Senior Citizens:

For accounts opened under VRS (Voluntary Retirement Scheme), proof of receipt of retirement benefits is required.

Note: NRIs, trusts, firms, and institutions are not eligible for Post Office Term Deposit schemes.

FAQs about Post Office FD Interest Rates:

1. . Is nomination mandatory on Post Office Term Deposits?

Yes, nomination is mandatory at the time of opening a Post Office Term Deposit account. You can nominate up to four individuals. Nominee changes in Post Office FD can be made by submitting a form with a ₹50 fee plus GST.

2. How is the maturity amount on my Post Office Term Deposit scheme paid?

The maturity amount of your Post Office Term Deposit is paid after you submit the account closure form and original passbook at the concerned Post Office. If the amount is below ₹20,000, it is paid in cash; for ₹20,000 or more, it is paid via account payee cheque or credited to your Post Office savings account.

3. Can I transfer my Post Office Term Deposit to a different branch?

Yes, accounts can be transferred between

CBS Post Offices. Submit the required application form along with your passbook and a fee of ₹100 plus GST at the designated Post Office branch.

4. Can I use my Post Office Term Deposit as collateral or guarantee?

Yes, a Term Deposit (TD) account can be pledged or transferred as security. Eligible pledgees include:

The President of India/Governor of the State.

RBI, Scheduled Banks, Co-operative Societies/Banks.

Public or Private Corporations, Government Companies, or Housing Finance Companies.

5. What is the interest payment frequency on my National Savings Monthly Income Account (MIS)?

Interest is payable

monthly, starting one month from the date of opening, and continues until maturity. Interest is credited via auto-credit to a linked savings account or through ECS at CBS Post Offices.

Disclaimer:

This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.

Write a review