Post Office FD Interest Rates

Post Office Fixed Deposit Interest Rates for July to September 2026

Below is the table of post office FD interest rates effective from 01.07.2026 to 30.09.2026 (last verified in August):

Note: Post Office fixed deposit interest rate w.e.f. 1st July 2026 to 30th September 2026

Post Office offer quarterly compounding, which maximises your returns over the tenure. It is important to note that the Post Office senior citizens FD rates are the same as those for general citizens. For seniors looking for higher annual returns and regular income, the Senior Citizen Savings Scheme (SCSS) has revised the rates from 7.50% p.a. to 8.20% p.a. with quarterly payouts.

Key Features of Post Office FD Rates

The table below shows the highlights of the post office fixed deposit interest rates scheme:

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 are effective from July 1, 2026 to September 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. 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 with interest rates up to 7.50% p.a., valid till 30th September 2026:

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: Not allowed within the first six months. Closure between six months and one year earns simple interest at the POSA rate only. After one year, interest is paid at the term deposit rate, reduced by up to 2%.

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 monthly income scheme post office rate is 7.4% per annum, valid up to 30th September 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.

Taxation on Earned Post Office FD Interest

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). In the old tax regime, the 5-year Post Office FD qualifies for a tax deduction under Section 123 (Schedule XV), which replaced 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.