Post Office Time Deposit (TD) Account Interest Rate 2026, Rules & Benefits
The Post Office Time Deposit (TD) Account is a popular government-backed small savings scheme similar to a bank fixed deposit, offering guaranteed returns for definite time periods. The Ministry of Finance reviews small savings interest rates every quarter, keeping rates unchanged for the October to December 2026 quarter.
Post Office TD Interest Rates 2026
Interest on the Post Office Time Deposit is calculated quarterly and payable annually. The interest rates vary based on the tenure of the deposit. For accounts opened during the October-December 2026 quarter, the rates are structured across four maturity periods:
- 1 Year Time Deposit: 6.9% per annum
- 2 Year Time Deposit: 7.0% per annum
- 3 Year Time Deposit: 7.1% per annum
- 5 Year Time Deposit: 7.5% per annum
Key Details Table
| Feature | Details |
|---|---|
| Organization | India Post, Government of India |
| Scheme Name | National Savings Time Deposit (TD) Account / Post Office Fixed Deposit |
| Interest Rates (Q3 FY 2026-27) | 6.9% (1 Year), 7.0% (2 Years), 7.1% (3 Years), 7.5% (5 Years) |
| Minimum Deposit | Rs. 1,000 (in multiples of Rs. 100) |
| Maximum Deposit | No upper limit |
| Interest Calculation | Calculated quarterly, payable annually |
| Tax Benefit | Available under Section 80C for 5-year TD only |
| Official Website | indiapost.gov.in |
Important Dates Table
| Event / Milestone | Date |
|---|---|
| Quarter Start Date for Rates | 01 October 2026 |
| Quarter End Date for Rates | 31 December 2026 |
Eligibility Criteria for Opening TD Account
Any resident individual can open a Post Office Time Deposit account. The account opening criteria include:
- A single adult.
- Joint accounts operated by up to three adults (Joint A or Joint B types).
- A guardian acting on behalf of a minor or a person of unsound mind.
- Minors above 10 years of age can open and operate an account in their own name.
Investment Limits and Rules
Accounts can be opened with a minimum deposit of Rs. 1,000, with subsequent deposits allowed in multiples of Rs. 100. There is no maximum investment limit. An individual can hold multiple accounts in any post office, and accounts can be freely transferred from one post office to another. Furthermore, deposits maturing in a CBS Post Office automatically renew for the initial tenure unless requested otherwise.
Premature Closure and Tax Benefits
Deposits are locked for a minimum period of six months. Premature closures attract specific rules:
- Between 6 months and 1 year: Interest is paid at the lower Post Office Savings Account rate.
- After 1 year: Interest is calculated at 2% less than the applicable TD rate for completed years, and at the savings account rate for any remaining fraction of a year.
Tax benefits under Section 80C of the Income Tax Act, 1961, apply exclusively to 5-year Time Deposit accounts.
How to Apply
To open a Post Office Time Deposit account, applicants can download the official application form from the India Post website. Submit the completed form along with KYC documents and the deposit amount via cash or cheque to the nearest post office.
Frequently Asked Questions
What is the interest rate for a 5-year Post Office Time Deposit in 2026?
The interest rate for a 5-year Post Office Time Deposit is 7.5% per annum.
What is the minimum amount required to open a Post Office TD account?
The minimum amount required to open a Post Office TD account is Rs. 1,000, and further deposits can be made in multiples of Rs. 100.
Are 1-year and 2-year Post Office TD accounts eligible for tax benefits?
No, tax deductions under Section 80C of the Income Tax Act are only available for 5-year Time Deposit accounts.
Can a minor open a Post Office Time Deposit account?
Yes, a minor above 10 years of age can open an account in their own name, and a guardian can open an account on behalf of a minor below 10 years.
How is the interest paid in a Post Office Time Deposit account?
The interest is calculated quarterly by the post office, but it is payable annually to the account holder.
Official Links
Details are compiled from official notices. Always confirm eligibility, dates and fees on the official website before applying.