Post Office FD Interest Rates 2026

Post Office FD Interest Rates for April to June 2026

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

Note: Post Office FD Interest Rates 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 factors.

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 FD interest rates, 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 Rs. 1,00,000 for 5 years at 7.50% p.a.:

Maturity Amount = Rs. 1,00,000 x (1 + 0.075/4)^(4x5) = Rs. 1,00,000 x (1.01875)^20 = approximately Rs. 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. While the time deposit scheme offers investment tenures of 1 to 5 years, the Post Office Monthly Income Scheme (POMIS) is suitable for investors who prefer a monthly 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 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 (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

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 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.

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 going through 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 Deposits interest rates range from 6.90% to 7.50% per annum. Post Fixed Deposits offer you a combination of government-backed safety of your investments plus applicable tax benefits. India Post’s widespread branches across the country and low minimum amount make it an accessible small savings option. Unlike FDs offered by banks, interest earned from Post Office FDs doesn’t attract any TDS. Compare the tenure and rates of different types of fixed deposit before making an investment decision.