The post office TD scheme, officially the National Savings Time Deposit, is a fixed deposit you open at any post office for one, two, three or five years. You deposit once, earn a fixed rate set for that quarter, receive interest every year, and get your money back at the end.
This page is about how the scheme works: who can open it, the account types, renewal, closing early and paperwork. For the rates themselves, see post office FD interest rate.
At a glance
Official name
National Savings Time Deposit AccountTerms
1, 2, 3 and 5 yearsMinimum
₹1,000, then multiples of ₹100Maximum
No limitAccounts
Single, joint (up to 3 adults), minorEarly closure
Not before 6 months
Post office TD scheme details in one table
| Feature | Rule |
|---|---|
| Who can open | Resident adults, up to three adults jointly, guardians on behalf of minors, children from age 10 |
| How many accounts | Any number |
| Deposit | ₹1,000 or more, in multiples of ₹100 |
| Interest | Computed every quarter, paid once a year |
| Tax deduction | Only on the 5 year deposit, old regime |
| Pledge | Can be pledged as security for a loan |
| Transfer | Between post offices, and to a legal heir |
Fixed deposit scheme in post office: names and what to expect
The TD scheme in post office goes by many names: post office TD scheme, post office term deposit scheme, post office fixed deposit scheme, or simply the fixed deposit scheme in post office. In Hindi conversation people say post office ki FD scheme. All of them are the National Savings Time Deposit.
Is it the best FD scheme in post office? It is the only one. The real choice is between terms, and between the TD and other post office products like NSC or MIS. People asking for the post office best FD scheme usually mean the 5 year deposit, because it pays the highest TD rate and saves tax under the old regime.
Choosing between the 1, 2, 3 and 5 year deposits
The longer terms pay a slightly higher rate, but the gap between one and three years is small. What matters more is when you need the money.
- 1 year at 6.9%: best for money set aside for a known cost next year, such as a fee or a wedding.
- 2 or 3 years: useful for a medium goal without tying up money for five years.
- 5 years at 7.5%: highest TD rate and the only one with a tax deduction. Read the 5 year FD page for its extra rules.
₹2 lakh split into two 1 year deposits and two 3 year deposits gives you money back every year or so while still earning near the higher rate on part of it.
What happens at maturity
On the maturity date the deposit and the last year's interest are paid into your linked savings account, or by cheque. You can also ask, when opening, for the deposit to be renewed automatically for the same term at the rate in force on the maturity date.
If the money is left uncollected without an auto renewal instruction, it earns savings account interest until you claim it, so do not leave it for long.
Breaking a post office FD early
| Closed after | Interest you get |
|---|---|
| Less than 6 months | Closure not allowed |
| 6 to 12 months | Savings account rate, 4.0% |
| More than 1 year | A lower rate than the TD rate for the time completed; confirm the exact rate at the counter |
The cut makes a post office TD a poor place for emergency money. Keep that in a savings account and use the TD for money you are sure you can leave.
Documents and steps to open a time deposit
- On the common opening form, mark time deposit and write the term.
- Show Aadhaar and PAN, and bring two passport size photos.
- Cash, a cheque or a transfer all work for the deposit.
- Name a nominee and choose where the yearly interest should go.
- Check the passbook or receipt for the rate, term and maturity date.
Savers who already bank with the post office online can book a TD from the India Post app or website.
Who the post office FD suits
- Savers who want a fixed return with the government standing behind it.
- People who are fine with a yearly payout. For monthly cash, the MIS fits better.
- Old regime taxpayers looking for a simple 5 year tax saver alongside NSC.
It is a weaker fit for money you may want back within six months, and seniors who have room in SCSS will earn more there.
Common problems and fixes
| Problem | Fix |
|---|---|
| Yearly interest not received | Update the passbook; ask for auto credit to the savings account |
| TDS cut though no tax is due | Give Form 15G or 15H for the year and claim a refund for past cuts |
| Name or PAN mismatch | Submit a KYC update form with ID proof |
| Holder died, no nominee | Legal heirs apply with a death certificate and succession papers |
Frequently asked questions
How little can I put in a post office FD?
₹1,000 to start; larger sums go up in steps of ₹100. There is no upper limit.
Is online opening possible for a post office FD?
Yes, provided your post office savings account already has net or app banking. Otherwise the counter is the first step.
Is post office time deposit the same as FD?
Yes. Time deposit is the official name for the post office fixed deposit.
Can a minor open a post office FD?
Yes. Parents or guardians open it on behalf of a minor; from age 10 a child may hold one personally.
Can I take a loan against a post office FD?
Yes. The deposit can be pledged to a bank as security. The post office marks it and releases it when the loan is repaid.
Is there a new post office FD scheme this year?
No new FD product has been launched. The time deposit continues with rates reset every quarter.