IPPB FD Interest Rates 2025

What is the India Post Payments Bank Fixed Deposit?

IPPB facilitates fixed deposit investments through India Post under the National Savings Time Deposit (TD) Scheme. While IPPB does not offer traditional FDs, customers can open time deposit accounts through post office fixed deposits. An account can be opened with a minimum of ₹1,000 and multiples of ₹100. There is no maximum limit on the investment.

Key Benefits of IPPB Fixed Deposit

India Post Payments Bank (IPPB) facilitates the following fixed deposit benefits for its customers to access and invest easily:

• Account Type: India Post Payments Bank (IPPB) allows you to open a Fixed Deposit account individually or jointly with up to three adults. There are two joint account options: Joint ‘A’ type, where all account holders operate the account together, and Joint ‘B’ type, where any one of the account holders can operate the account independently.
• Maturity Period: The deposit amount with India Post Payments Bank (IPPB) is repaid after 1, 2, 3, or 5 years from the account opening date, based on the selected tenure.
• Guardian or Authorised Account: A fixed deposit account with IPPB can be opened by a guardian on behalf of a minor or someone of unsound mind. It is called an authorised account.
• Online Access: Accounts can be opened through e-banking or Mobile Banking, but having a Post Office Savings Account is required to use Internet banking services.
• Premature Withdrawal: With India Post Payments Bank (IPPB), no deposit can be withdrawn before completing six months from the date of deposit.

India Post Payments Bank FD rates

Here are the applicable IPPB FD interest rates 2025 offered to customers who have a post office fixed account: 

India Post Time Deposit Interest Rates 

*IPPB FD Time Deposit FD Interest rates w.e.f. July 07, 2025

To explore comparative options, check FD interest rates in India.

How to Open an Indian Post Payments Bank Fixed Deposit?

Opening a Fixed Deposit with India Post Payments Bank is straightforward and can be done online or by visiting the nearest post office branch.

1. Online Method

   You can open a Time Deposit account online through the official India Post Internet Banking portal. Here's how:

   • Visit the official India Post eBanking website.
   • Log in using your registered User ID and password.
   • Go to the ‘General Services’ tab and select ‘Service Request’.
   • Click ‘New Request’ to apply for a Time Deposit account.
   • Enter the required details and proceed to confirm.

   To open an account offline, follow these steps:

   • Visit your nearest or preferred Post Office branch.
   • Request and fill out the Time Deposit account opening form.
   • Submit the required documents (KYC, ID proof, address proof).
   • Deposit the amount (minimum ₹1,000)
   • Collect your receipt and confirmation of account opening.

Documents Required for IPPB Fixed Deposit

If you are opening a Fixed Deposit through India Post Payments Bank (especially for the first time), keep the following documents ready:

• Proof of Identity: Aadhaar Card, PAN Card, Voter ID, or Passport
• Proof of Address: Utility bill, Aadhaar Card, or Bank Statement with current address
• Passport-size Photograph: Recent photograph for KYC verification
• PAN Card: Mandatory for Tax Deducted at Source (TDS) and income tax filing purposes
• IPPB Savings Account Number: Required to link and transfer funds for opening a deposit account

Taxation on IPPB Fixed Deposit Interest

Interest earned from Fixed Deposits through India Post Payments Bank (IPPB) is taxable under “Income from Other Sources” as per your income tax slab. As per Section 194A of the Income Tax Act, Tax Deducted at Source (TDS) at 10% is applicable if the total interest earned in a financial year exceeds ₹50,000 for regular individuals and ₹1,00,000 for senior citizens. The investment under the 5-year Time Deposit also qualifies for tax deduction under Section 80C of the Income Tax Act, 1961.

Key Takeaways

India Post Payments Bank (IPPB) offers fixed deposits through the National Savings Time Deposit Scheme with tenures of 1 to 5 years and interest rates ranging from 6.90% to 7.50% p.a. The 5-year deposit qualifies for tax benefits under Section 80C. Premature withdrawal is not allowed before 6 months, and early closures may earn reduced interest. Checking which bank has the highest FD rate before investing is recommended to ensure better returns.