The post office interest rate on FD this quarter is 6.9% for one year, 7.0% for two years, 7.1% for three years and 7.5% for five years. The post office calls its fixed deposit a time deposit, or TD, and the rates are the same at every branch in India.
This hub explains what each rate pays in rupees, how TD interest is worked out and paid, the tax angle, and where to go for the 5 year tax saver, the calculator and the senior citizen question. It is an independent explainer, not an India Post page.
At a glance
1 year
6.9%2 years
7.0%3 years
7.1%5 years
7.5% (tax saver)Interest
Worked out quarterly, paid every yearMinimum
₹1,000, no upper limit
Post office interest rate on FD: the table
| Term | Rate a year | Yearly interest on ₹1 lakh |
|---|---|---|
| 1 year | 6.9% | ₹7,081 |
| 2 years | 7.0% | ₹7,186 |
| 3 years | 7.1% | ₹7,291 |
| 5 years | 7.5% | ₹7,714 |
The yearly interest is a little more than the headline rate because it is calculated every quarter before being paid out once a year. There is no special post office FD rate for women or for senior citizens.
One year and other terms, in the words people search
The post office one year FD interest rate, also searched as the 1 year FD interest rate in post office or the 1 year TD interest rate in post office, is 6.9%. The TD rate of interest in post office for longer terms is 7.0%, 7.1% and 7.5%. Call it the post office rate of interest on FD, the fixed deposit interest rate of post office, the time deposit interest rate in post office or the in post office FD rate of interest, the table above is the answer. The Indian post office fixed deposit interest rate does not differ by state, and the post office bank FD interest rate (a time deposit opened through your post office savings bank) is the same.
How time deposit interest is calculated and paid
Under the scheme rules, the quarter is the unit of calculation and the year is the unit of payment. In practice the post office works out the interest each quarter, rolls it within the year, and credits the year's total on each anniversary of your deposit.
₹3 lakh in a 3 year TD at 7.1% pays about ₹21,874 on each of the three anniversaries, so ₹65,622 in all, and the ₹3 lakh is returned at the end.
Tell the counter whether each year's interest should land in your savings account or feed an RD. Try any amount and term in the post office FD calculator.
Which term to choose
| If you | Consider |
|---|---|
| Might need the money within a couple of years | 1 or 2 year TD |
| Want the best TD rate and can wait | 5 year TD at 7.5% |
| Want a tax deduction (old regime) | Only the 5 year TD qualifies |
| Want monthly income instead of yearly | MIS |
The 5 year deposit is covered in depth on the post office 5 year FD page.
Post office FD scheme interest rate for longer periods
A common search is the post office FD interest rate for 10 years. The longest single time deposit is five years. To stay invested for ten, you renew the 5 year TD at maturity, and the second five years earn whatever rate applies on the renewal date. You can ask for automatic renewal when opening the deposit.
If you want one product that runs well beyond five years at a government rate, the PPF runs for fifteen years and can be extended in five year blocks, though it takes yearly deposits rather than a lump sum.
Post office FD vs bank FD
On long terms, big banks have tended to trail the post office slightly, while beating it now and then on special short tenures. Banks also give senior citizens an extra rate, which the post office does not.
| Post office TD | Typical bank FD | |
|---|---|---|
| Who guarantees it | Government of India | The bank; insured to ₹5 lakh |
| Terms | 1, 2, 3, 5 years only | 7 days to 10 years |
| Senior citizen extra | No | Usually yes |
| Breaking early | Not in first 6 months | Usually allowed with a penalty |
Seniors should read post office FD for senior citizens before choosing.
Tax and TDS on post office FD interest
Every year's TD interest goes into your taxable income. Only the 5 year TD gives a deduction on the deposit, under section 123 of the new Income-tax Act (what used to be 80C), and only in the old regime.
TDS applies once TD interest passes the yearly threshold, a higher one for seniors. If you owe no tax, Form 15G (below 60) or 15H (60 and above) avoids the deduction.
Closing a post office FD before maturity
- No closure in the first six months.
- Between six months and one year, you get only the savings account rate of 4.0%.
- After one year, a reduced rate applies to the period the money stayed. The exact reduction depends on the term, so ask at the counter before deciding.
If you think you may need the money early, a shorter TD or a few smaller deposits is better than one large 5 year deposit.
Rate history in brief
Time deposit rates were cut deeply in the low interest period, when the 1 year TD paid 5.5% and the 5 year TD 6.7%. As bond yields rose, the rates climbed in steps to today's 6.9% and 7.5%, where they have held for many quarters. A deposit keeps the rate it opened with, so older deposits may still be earning the lower figures until they mature.
Answers to the ways people search for this
Fixed deposit interest rate in post office, post office term deposit interest rate, TD interest rate in post office, interest rate on FD in post office: every one of them points to the rate table above. Post office me FD interest rate is the same question in everyday Hindi English. The rate on the counter board and on the India Post site will match the figures here for the current quarter. For a broader view across every scheme, see the post office interest rates hub, and for how the deposit itself works, the post office FD scheme guide.
Frequently asked questions
Post office FD interest rate for 1 year?
6.9% a year this quarter. On ₹1 lakh that is about ₹7,081 after one year.
Post office FD interest rate for 5 years?
7.5% a year. It pays about ₹7,714 a year on ₹1 lakh and qualifies for the old regime deduction.
Is there a higher post office FD rate for senior citizens?
No. The post office pays all ages the same TD rate. Seniors earn more in SCSS.
Is post office FD interest paid monthly?
No, once a year. For monthly payouts, look at the Monthly Income Scheme.
Is a post office FD better than a bank FD?
It is safer and often a little higher on 5 years. Bank FDs offer more terms and senior extras. Compare both for your need.
Does the post office FD rate change after I deposit?
No. Your rate is fixed for the full term you chose.