Post Office FD Interest Rates 2025

Post Offices in India, operated by the Indian Postal Services, offer Post Office FDs with an interest rate ranging from 6.90% to 7.50% for tenures between 1 year and 5 years. Backed by the Government of India’s sovereign guarantee through the Union Ministry of Finance, these deposits ensure capital protection and predictable interest income, making them especially attractive to conservative investors.

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Maximum returns Offered by Guaranteed

6.5%**

Fixed Deposits

(by SBI bank)

(5-10 Years)

7.1%***

Public Provident Fund

(other popular options)

(15 Years)

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10.5 Crore
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Post Office FD Interest Rate

FD Interest rates are competitive and differ from bank to bank. Post Office offers FD Interest Rates as high as banks and hence can be considered a good investment option.

Tenure General Citizens  Senior Citizens
1 year 6.90% 6.90%
1 year 1 day - 2 years 7.00% 7.00%
2 years 1 day - 3 years 7.1% 7.00%
3 years 1 day - 5 years 7.5% 7.5%

Note: Rates are effective from 1st July 2025 till 30th September 2025 (Quarterly)

Information About
Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund
Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund
Guaranteed Return Plans
Returns Before Tax
7.1% (TAX-FREE)
Returns After Tax
7.1%
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
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*For annual premium upto ₹5 Lacs

Features of Post Office Fixed Deposit (Time Deposit Account)

The basic features of a Post Office FD interest rates account are mentioned below:

Features of Post Office FD Interest Rates  Details
FD Tenure 1, 2, 3, and 5 years
Rate of Interest 6.90% to 7.50%
Minimum Deposit Amount ₹1,000
Interest Payment Annually
Interest Calculation Quarterly
Premature Withdrawal It is allowed after 6 months
Payment Mode Cheque / Cash
Facility of Nomination Available

Note: It is advised to use an FD calculator to get an estimate of returns that can be earned before making an investment decision.

fd return beater

How Does the Post Office FD Interest Rate Scheme Work? 

To show the working of Post Office FD interest calculations, use the following example: 

The Compound Interest works on the basis of the following formula:
A = P (1 + r/n) ^ nT
Compound Interest (CI) = A - P
Terms used in Compound Interest
A
stands for Total Compounded Amount
P
stands for Principal Amount
r
stands for Rate of Interest
n
stands for Number of Time Interest is Compounded Per Year
T
stands for Number of Years

Example based on various investment amounts:

Investment Amount For 3 years @ 7.1% (Quarterly) For 5 years @ 7.5% (Quarterly)
₹75,000 ₹92,631 ₹1,08,746
₹1,25,000 ₹1,54,384 ₹1,81,244
₹3,00,000 ₹3,70,522 ₹4,34,984
₹6,00,000 ₹7,41,045 ₹8,69,969
₹12,00,000 ₹14,82,090 ₹17,39,938

Guaranteed return plan Guaranteed return plan

Eligibility to Open a Post Office FD Interest Rate Account 

To open a Post Office Fixed Deposit (FD) account, you must meet the following eligibility criteria:

  • Any Indian individual can apply.
  • Minors above 10 years of age can open an account in their name.
  • A guardian can open an account on behalf of a minor or a person of unsound mind.
  • Not Eligible: NRIs, trusts, and companies are not permitted to open a Post Office FD account.

Documents Required to Open a Post Office FD

You need to submit the following documents to open a Post Office FD interest rate account:

  • Proof of Identity (Any one of the following): Aadhaar Card, Voter ID Card, PAN Card, Driving License, Passport
  • Proof of Address (Any one of the following): Aadhaar Card, Utility bills (electricity, water, gas), Ration Card

Process of Opening a Post Office FD Account Online and Offline

  1. Online

    • Download the India Post Mobile Banking app from the Google Play Store.
    • Access the app by entering your login credentials.
    • Navigate to the 'Requests' tab within the app.
    • Choose 'Open POFD Account' from the options.
    • Complete the necessary details in the application and submit it.
  2. Offline

    • Head to your closest Post Office branch.
    • The application form for Post Office Fixed Deposit.
    • Complete the essential details and attach the required documents.

What are the Different Types of Post Office FD Schemes?

  1. National Savings Time Deposit Account

    The National Savings Time Deposit Account (TD) is a fixed deposit scheme designed for individuals looking for guaranteed returns with flexible tenure options.

    Key Features

    • Tenure Options: Available for 1, 2, 3, or 5 years, allowing investors to align their savings with financial goals.
    • Interest Rates: Government-set interest rates are revised periodically, ensuring competitive returns similar to bank FDs.
    • Interest Payment: Interest is credited annually but compounded quarterly. If not withdrawn on time, no additional interest is added.
    • Premature Withdrawal:
      • Allowed after 6 months from the deposit date.
      • If a 1-year FD is withdrawn early (after 6 months), it earns interest at the Post Office Savings Account rate.
      • For 2, 3, or 5-year FDs, premature withdrawal after 1 year results in a 2% lower interest rate for completed years.
    • Investment Limits:
      • Minimum deposit: ₹1,000
      • No maximum investment limit
    • Tax Benefits: The 5-year deposit qualifies for tax deduction under Section 80C of the Income Tax Act.
  2. National Savings Monthly Income Account

    The National Savings Monthly Income Account (MIS) is a great option for those looking for a regular monthly income from their investment.

    Key Features

    • Investment Limits:
      • Minimum deposit: ₹1,000
      • Maximum for an individual: ₹4.5 lakh
      • Maximum for joint accounts: ₹9 lakh
      • Separate limit applies for accounts opened by guardians on behalf of minors.
    • Interest Payment:
      • Interest is paid monthly from the account opening date until maturity.
      • Unclaimed interest does not earn additional interest.
      • Interest earnings are taxable.
    • Tenure:
      • Fixed tenure of 5 years.
      • Can be extended for another 5 years after maturity.
    • Premature Withdrawal:
      • Allowed after 1 year from the deposit date.
      • If closed between 1-3 years: 2% of the deposit is deducted.
      • If closed between 3-5 years: 1% of the deposit is deducted.

What are the Benefits of the Post Office FD Interest Rate Scheme?

Below are the benefits of the Post Office FD Interest rate: 

  • Flexible Tenure: Post office FD interest rate offers tenures ranging from 1 to 5 years.
  • Multiple Accounts: Depositors can open multiple FD accounts in any post office.
  • Minors' Access: Minors aged 10 and above can open and manage accounts, with conversion options at 18.
  • Low Minimum Deposit: A minimum deposit of ₹200 is required to open a post office FD.
  • No Maximum Limit: There is no cap on the maximum deposit amount.
  • Joint Accounts: Joint accounts can be opened by two adults, with easy conversion options.
  • Tax Benefits: Deposits for 5 years qualify for tax benefits under Section 80C of the Income Tax Act.
  • Transferability: Post office FD Interest Rate accounts can be easily transferred between post offices.
  • Automatic Renewal: Accounts are renewed automatically on maturity, maintaining the same tenure.
  • Exclusion for NRIs: NRI depositors cannot open fixed deposit accounts in Indian post offices.
  • Nomination Facility: Nomination can be done at account opening or even after.
  • Payment Flexibility: Accounts can be opened with cash or cheque, with the cheque date as the account opening date.

What are the TDS Implications and Taxation for Post Office FD Interest Rate Account?

A significant advantage of placing funds in a post office fixed deposit is the absence of Tax Deducted at Source (TDS) on the interest accrued. When filing for Income Tax Return (ITR), individuals have the option to include their post office fixed deposit investments to qualify for deductions under section 80C of the Income Tax Act, 1961. The maximum deduction limit under this section of the IT Act, 1961 is capped at ₹1.5 lakh per financial year.

Conclusion 

With rates between 6.90% and 7.50% per annum, Post Office FD interest rates remain competitive compared to many other traditional savings products, particularly for those prioritizing capital safety and stable growth. For investors looking for peace of mind and assured returns, Post Office FDs stand out as a solid choice in the current financial landscape. One can easily calculate returns through the Policybazaar’s Post Office FD Calculator online.

Explore More Under Banks FD Interest Rates


˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
* Applicable for Titanium variant of Max Life Smart Fixed-return Digital (Premium payment of 5 years, Policy term of 10 years) and a healthy male of 18 years old paying Rs. 30,000/- monthly (exclusive of all applicable taxes)
** Fixed deposit rate applicable for 5 year's 1 day to 10 years for investment amount less< 2 Crore ( Not for senior citizens).
*** PPF interest rate applicable for 15 years for investment amount upto 1.5 Lac
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
#Discount offered by insurance company
## The Guaranteed Returns are dependent on the policy term and premium term availed along with the other variable factors. 7.1% rate of return is for an 18 years old, healthy male for a policy term of 20 years and premium term of 10 years with Rs.10,000 monthly installment premium. All plans listed here are of insurance companies’ funds.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

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