Post office time deposit
The post office's fixed deposit, for 1, 2, 3 or 5 years, at a rate set by the government each quarter.
The post office time deposit works like a bank FD, backed by the government. Its 5-year version is the post office’s answer to the bank tax saver FD.
Questions people ask
What is the post office time deposit interest rate?
For October to December 2026: 6.9% for 1 year, 7.0% for 2 years, 7.1% for 3 years and 7.5% for 5 years, per the Ministry of Finance. The government reviews the rates every quarter, and your rate stays fixed for the term you open.
Does the post office time deposit save tax?
Only the 5-year deposit, and only on the old regime: it counts towards the 1.5 lakh rupee deduction long known as section 80C, now section 123 of the Income-tax Act, 2025. The interest is taxable at your slab.
Is a post office time deposit safe?
It is a small savings scheme backed by the Government of India, so it is among the safest places to keep money.
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