Post Office FD Interest Rates 2026

What Are Post Office FD Interest Rates?

Post Office Time Deposit, also known as the Post Office Fixed Deposit Scheme. It 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 w.e.f April 01 2026, to June 30, 2026.

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

Here are the most important features and highlights 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:

   Post office FD premature withdrawals are permitted after 6 months, with interest paid at the savings account rate if closed before 1 year, and at a 2% reduced rate 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 another 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   Unless withdrawn, matured deposits automatically renew for the original term at current interest rates.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.

Post Office FD Calculator

It's much easier to plan your savings before investing. A Post Office FD Calculator is a simple, free online tool that helps you see how your money will grow over time. Instead of doing complicated math, you just need to enter. 

• Deposit amount 
• Chosen tenure, and 
• Total maturity amount

The calculator automatically accounts for the Post Office's quarterly compounding and gives you a clear, reliable figure. This helps you skip the guesswork and move forward with your investment with complete confidence.

Conclusion 

Post Office Fixed Deposits interest rates range from 6.90% to 7.50% per annum. Not only can you save up to ₹1.5 lakh in taxes, but you can also take a loan of up to 90% against your deposit. While it's best to let your money grow until maturity to avoid small penalties, the "Government of India" stamp ensures your capital is 100% secure. To see exactly how much you can earn, simply use Policybazaar's Post Office FD Calculator to plan your investment.