Post Office FD Interest Rates 2026

Post Office Fixed Deposit Interest Rate for April to June 2026

Post Office FD, also known as Post Office Time Deposit, offers tenures ranging from 1 year to 5 yea ₹ It has the highest interest rate up to 7.50% p.a., with different slab rates:

Note: Post office fixed deposit interest rate applicable for the April to June 2026 Quarter.

The Post Office calculates your interest every three months to give you the best return. The interest rate you get depends on how long you invest and the amount you deposit. It is important to note that, unlike banks, which often offer seniors a higher rate, the Post Office senior citizens FD rates are the same as those for general citizens. If you are a senior looking for extra benefits, you might consider the Senior Citizen Savings Scheme (SCSS) instead.

Key Features of Post Office FD

Post Office FD vs Bank FD: Key Differences

Here is a side-by-side comparison of the most important facto ₹

Premature Withdrawal Rules

You cannot withdraw a Post Office FD before 6 months from the date of opening. After that, the following rules apply:

Interest Income Illustration for Post Office FD

The table below shows the current post office fixed deposit interest rate, along with the maturity amount you would receive on a deposit of ₹1 lakh.

Note: Rates effective from April 1, 2026 to June 30, 2026. Interest is compounded quarterly but paid out annually. Maturity amounts are indicative, calculated using quarterly compounding.

How Is Post Office FD Interest Calculated?

The Post Office compounds interest every quarter, even though it is paid out once a year. This means your interest earns interest within the year, giving you slightly better returns than a simple annual interest model.

Formula used:

Maturity Amount = P x (1 + r/4)^(4 x n)

Where:

• P = Principal amount
• r = Annual interest rate (in decimal)
• n = Tenure in years

Example: If you deposit ₹ 1,00,000 for 5 years at 7.50% p.a.:

Maturity Amount = ₹ 1,00,000 x (1 + 0.075/4)^(4x5) = ₹ 1,00,000 x (1.01875)^20 = approximately ₹ 1,44,995.

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. Post Office Monthly Income Scheme (POMIS) is suitable for investors who prefer a secure monthly income deposit. Below are the details of these 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:

• Payment of Interest: The interest earned is compounded quarterly but is paid annually on your Post Office Savings Account or your bank account.
• Limits of Investment: You can invest as low as ₹1,000, then invest in multiples of ₹100. After that, there is no cap on the maximum investment amount.
• Premature Withdrawal: It is prohibited for the first 6 months, but thereafter, there are specific interest penalties that range from the Post Office Savings Account rate to a 2% drop in the applicable term deposit rate, depending on the term length and when the closure request is made.

Note: For accounts opened after Nov 10, 2023, withdrawals are permitted only after 4 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 is best for depositors who want to manage their expenses regularly. It provides the facility of a monthly interest income. The current MIS Interest Rate 2026 is 7.6% per annum:

Key Features:

• Flexible Investment Entry: Make your investment with a minimum investment amount of only ₹1,000.
• New Deposit limit: Investors can deposit up to ₹9 lakh in a single account and ₹15 lakh in a joint account, providing ample space to preserve wealth.
• Minor Account Provisions: The maximum limit for opening a separate account for minors is ₹9 lakh, which can be opened by the guardian or the minor themself if the minor is over 10 years of age. This limit is separate from and in addition to the guardian's personal investment limit. 

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 allowed to open a Post Office FD account.

Documents Required to Open a Post Office FD

How to Open a Post Office FD Online and Offline

You can open a post office FD online or in person at a post office.

Online

• Download the India Post Mobile Banking app from the 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.

Nomination and Account Transfer in Post Office FD

1. Nomination

   You can nominate one or more individuals when opening a Post Office FD. Nomination can also be added or changed after opening by submitting Form-2 at any post office branch. In the event of the account holder's death, the nominated person receives the deposit amount without having to undergo a lengthy legal process.

2. Account Transfer

   A Post Office FD can be transferred from one post office branch to any other branch across India. This is useful if you relocate. Submit a written transfer request along with your passbook at your current branch. There is no charge for transferring the account.

Tax Rules for Post Office FD

The Post Office does not deduct TDS on FD interest. However, the interest you earn is still taxable. You must declare it as income and pay tax as per your applicable income tax slab when filing your Income Tax Return (ITR). Only the 5-year Post Office FD qualifies for a tax deduction under Section 80C of the Income Tax Act, 1961. You can claim a deduction of up to ₹1.5 lakh per financial year on the principal invested.

Post Office FD Calculator

Before you invest, it helps to know exactly what you will earn. The Post Office FD Calculator on Policybazaar lets you estimate your maturity amount in a few seconds. You just need to enter:

• The deposit amount
• The tenure you want

The calculator uses the Post Office's quarterly compounding method to give you an accurate maturity figure. No guesswork, no complicated math.

Conclusion

Post Office Fixed Deposit interest rates range between 6.90% to 7.50% p.a. Post Fixed Deposits provide you with the benefits of government security, with the applicable tax benefits. India Post has an extensive network of branches and requires a minimum deposit of Rs 5,000, making it an easy small-savings bank. Unlike FDs offered by banks, interest earned from Post Office FDs doesn't attract any TDS. Compare the terms and interest rates of each fixed deposit scheme before investing.