Rates for 1 October – 31 December 2026
| Tenure | Rate | Yearly interest on ₹1,00,000 |
|---|---|---|
| 1 year | 6.9% | ₹7,081 |
| 2 years | 7.0% | ₹7,186 |
| 3 years | 7.1% | ₹7,292 |
| 5 years | 7.5% | ₹7,714 |
The Finance Ministry kept these unchanged on 30 September 2026. Rates are reviewed every quarter, but the rate on your deposit stays fixed for its whole term once opened.
How interest works
Interest is calculated quarterly and paid once a year, so the yearly payout is a little more than the headline rate — the column above. You can have it credited to your post office savings account, or set up an auto-transfer into a recurring deposit.
Rules at a glance
- Minimum ₹1,000, then multiples of ₹100; no maximum.
- Single or joint (up to three adults); a guardian can open one for a minor.
- Premature closure not allowed in the first 6 months. Closed between 6 and 12 months, you get the post office savings rate (4%). Closed after a year, interest is worked out at a lower rate than the deposit's.
- The 5-year deposit qualifies for the tax deduction on tax-saving investments, but only under the old tax regime.
- Interest is taxable at your slab rate.
Post office or bank FD?
Post office deposits are backed by the Government of India itself, with no ₹5 lakh insurance ceiling to think about. Some banks, especially small finance banks, may pay more for certain tenures, and bank FDs are easier to open and close online. Compare on FD interest rates.
How to open
At any post office with your Aadhaar, PAN, photos and the deposit; or through India Post's internet banking or the IPPB app if your post office savings account is linked.
For general information only, not investment advice or a recommendation. Oxon Fintech is a loan facilitation platform, not a SEBI-registered investment adviser, bank or mutual fund distributor, and does not sell bonds, deposits or funds. Rates and rules are as checked on the date above; confirm with the issuer, bank or fund house before investing. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.