Post Office FD Interest Rates 2026

What Are Post Office FD Interest Rates?

The high interest rate on FD post office is 7.50% on its 5-year tenure. Below are the Post Office FD rates that are effective from January 1, 2026, to March 31, 2026, that are available for 4 different tenure slabs: 

Note: Post Office FD Interest Rates w.e.f 01.01.2026 to 31.03.2026

While the interest is compounded quarterly for maximum benefit, the actual payout is processed annually. FD interest rates are determined by the deposit tenure you choose and the amount you invest. There are no additional post office FD rates for senior citizens. However, banks offer higher FD rates for senior citizens than for regular depositors.

Key Features of Post Office FD

Here are the most important features of a Post Office fixed deposit:

Note: It is advised to use an FD calculator to estimate returns before making an investment decision.

1. Premature Withdrawal:

   For Post Office FDs, premature withdrawals are permitted after six months, with interest paid at the savings account rate if closed before one year and at a 2% reduced rate for completions thereafter.

2. Easy Transfer: 

   Under the Post Office FD Scheme, accounts can be moved between any post office branch nationwide. This ensures hassle-free access to your funds even if you relocate to a different city or state.

3. Liquidity Options:

   You can use your Post Office FD as collateral to secure a loan from any bank or financial institution without breaking your it. This "pledging" allows you to access immediate funds for emergencies while your principal continues to earn interest at the original rate.

4. Renewal: 

   Unless withdrawn, matured deposits automatically renew for the original term at current interest rates. You may also manually extend the account by submitting an application within 6 to 18 months of maturity, depending on the tenure.

Types of Post Office FD Schemes

The Post Office FD offers two fixed deposit schemes: the National Savings Time Deposit Account and the National Savings Monthly Income Account. While the time deposit scheme offers investment tenure from 1 year to 5 years, the Post Office Monthly Income Scheme (POMIS) is suitable for investors who prefer a monthly interest income from a secure deposit. Here are the details of the two Post Office FD schemes:

National Savings Time Deposit (TD) Account

The National Savings Time Deposit Account (TD) is the Post Office's version of a traditional Fixed Deposit offered by banks. It's suitable for individuals seeking guaranteed returns over a fixed period.

Key Features:

• Interest Payment: Interest is compounded quarterly but paid annually to your Post Office Savings Account or bank account.
• Investment Limits: Investors can start with a minimum deposit of ₹1,000 and invest in multiples of ₹100 thereafter, with no upper limit on the maximum investment amount.
• Premature Withdrawal: It is prohibited within the first six months, after which closures incur specific interest penalties, ranging from receiving only the Post Office Savings Account rate to a 2% reduction in the applicable term deposit rate, depending on the tenure and timing of the request.

Note: For accounts opened after Nov 10, 2023, withdrawals are only permitted after four years and will earn interest at the basic Post Office Savings Account rate for the entire duration.

National Savings Monthly Income Account (MIS)

The National Savings Monthly Income Account (MIS) is ideal for investors seeking a regular interest income stream from their lump-sum investment. The current MIS Interest Rate 2026

Key Features:

• Flexible Investment Entry: Start your investment with a minimum deposit of just ₹1,000.
• Revised Deposit Caps: Investors can deposit up to ₹9 lakh in a single account and up to ₹15 lakh in a joint account, providing ample room for wealth preservation.
• Minor Account Provisions: Separate accounts can be opened for minors (by a guardian or by the minor if over 10 years old) with a maximum limit of ₹9 lakh. This limit operates independently, meaning it does not count towards the guardian’s personal investment ceiling.

Eligibility to Open a Post Office FD 

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

• Any Indian individual can apply.
• Minors aged 10 or older 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: Aadhaar Card, Voter ID Card, PAN Card, Driving License, Passport
• Proof of Address: Aadhaar Card, Utility bills (electricity, water, gas), Ration Card

How to Open a Post Office FD Online and Offline

You can open a post office FD through online channels or offline by visiting a post office.

Online

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

Offline

• Head to your closest Post Office branch.
• Collect the Post Office Fixed Deposit application form from the bank’s executive.
• Complete the essential details and attach the required documents.
• Submit your application along with the deposit amount. 
• Accounts can be opened with cash or cheque, with the cheque date as the account opening date.

What Are the Tax Implications for Post Office FD Interest?

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 the Income Tax Return (ITR), individuals can include their post office fixed deposits 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 attractive Post Office FD interest rates ranging from 6.90% to 7.50% per annum, these deposits remain highly competitive with many other traditional savings products. Crucially, as they are government-backed, Post Office FDs offer the highest level of capital safety and assured returns. For risk-averse investors prioritising peace of mind and stable growth in the current financial landscape, they stand out as a solid choice. You can easily estimate your earnings using Policybazaar's Post Office FD Calculator online.