IPPB FD Interest Rates

India Post Payments Bank FD rates

Here are the applicable post office FD interest rates for people who are looking for IPPB FD rates and have a post office fixed deposit account: 

*IPPB FD Time Deposit FD Interest rates w.e.f. 01.07.2026 to 30.09.2026*

Key Fixed Deposit (Time Deposit) Details

Post Office Time Deposits offer government-backed security with fixed returns guaranteed for your selected tenure:

• Current Interest Rates: Range from 6.90% p.a. to 7.50% p.a. (compounded quarterly) depending on the duration.
• Tenures Available: 1, 2, 3, or 5 years.
• Minimum Amount: ₹1,000 (no maximum limit).
• Tax Benefits: The 5-year Time Deposit is eligible for tax deductions under Section 80C.
• 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.

How to Get an FD (Time Deposit) via IPPB

Option 1: Digital via IPPB Mobile Banking App

• Open your IPPB Mobile Banking App and log in.
• Go to the DOP Services (Department of Post Services) tab.
• Select Post Office Time Deposit (POTD).
• Link your Post Office Savings Account (POSA) if you haven't already.
• Select your tenure (1, 2, 3, or 5 years) and enter the amount you want to deposit.
• Confirm via OTP to create the deposit directly from your account balance.

Option 2: Automatic "POSA Sweep"

• Link your IPPB Savings Account to a Post Office Savings Account (POSA).
• Set up the Sweep-in / Sweep-out facility.
• Any end-of-day balance above ₹2 lakh automatically moves to your Post Office account via IPPB POSA linkage, allowing you to easily lock it into a Time Deposit.  

Option 3: Offline via Post Office Branch

• Visit your nearest Post Office branch with your IPPB details.
• Fill out the Time Deposit Account Opening Form.
• Provide your Aadhaar, PAN card, and address proof for KYC.
• Transfer funds directly from your IPPB account or deposit cash/cheque (minimum ₹1,000).

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 Post Office Time Deposits booked via India Post Payments Bank (IPPB) is taxable under "Income from Other Sources" according to your applicable income tax slab rate. Under Section 194A of the Income Tax Act, Tax Deducted at Source (TDS) at 10% applies if the total interest earned in a financial year exceeds ₹50,000 for regular individuals and ₹1,00,000 for senior citizens. Additionally, investments made under the 5-year Time Deposit qualify for a tax deduction of up to ₹1,50,000 under Section 80C. 

Key Takeaways

IPPB facilitates Post Office Time Deposits (POTD), offering 6.90% to 7.50% p.a. interest across 1 to 5-year tenures. Only the 5-year tenure qualifies for tax savings under Section 123 (previously Section 80C) up to ₹1,50,000. Interest is taxable, with 10% TDS applying above ₹50,000 annually (₹1,00,000 for senior citizens). IPPB Premature withdrawal FDs are locked for 6 months and face reduced interest penalties thereafter.