Post Office Fixed Deposit Rates

The Post Office FD interest rates in 2026 range from 6.90% p.a. to 7.50% p.a. for both general and senior citizens. The tenure ranges from 1 year to 5 years, with interest compounded quarterly and paid annually, making Post Office FDs a safe and stable investment option for conservative investors. Continue reading for the latest Post Office FD rates, maturity returns, tax rules, eligibility and other details. 

Post Office FD Interest Rates 2026

The table below shows the latest Post Office FD interest rates for different tenures in 2026.

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Post Office FD Interest Rates for Senior Citizens

The Post Office FD interest rate for senior citizens remains the same as regular citizen rates across all tenures, ranging from 6.90% p.a. for 1-year deposits to 7.50% p.a. for 5-year deposits. Unlike banks, Post Office FDs do not offer additional interest benefits for senior citizens. Investors looking for higher returns can consider the Senior Citizens Savings Scheme (SCSS), which is specifically designed for senior citizens and offers higher interest rates.

Features and Benefits of Post Office FD Interest Rate 2026

Post Office Fixed Deposits are a popular investment option for individuals looking for safe and stable returns. Backed by the Government of India, they offer guaranteed earnings, flexible tenures, and tax-saving benefits for long-term investors. 

Here are some of the key features and benefits of Post Office FD schemes in 2026:

• Flexible tenure options ranging from 1 year to 5 years
• Government-backed investment with fixed and guaranteed returns
• Minimum investment starts from just ₹1,000
• No maximum investment limit
• Investors can open multiple FD accounts under different tenures
• 5-year Post Office FD qualifies for tax benefits under Section 80C
• Joint account and nomination facilities available
• Minors above 10 years can open and operate the account
• Deposits can be made through cash or cheque
• Accounts can be easily transferred between Post Office branches
• FD accounts are automatically renewed at maturity at prevailing interest rates

Post Office FD Calculator

A Post Office FD Calculator helps you estimate the maturity amount and interest earned based on your investment amount, tenure, and applicable Post Office FD interest rates. Since Post Office fixed deposit interest is compounded quarterly, the calculator provides a quick and accurate estimate of your expected returns.

The table below shows the estimated maturity amount for a ₹1 lakh investment across different Post Office FD tenures in 2026:

Key Points

• Interest is compounded quarterly
• Minimum investment starts from ₹1,000
• There is no maximum investment limit
• Unlike bank FDs, the Post Office senior citizen FD interest rate remains the same as regular citizen FD rates.
• Only the 5-year Post Office FD qualifies for tax benefits under Section 80C
• Senior citizens do not receive additional interest benefits on Post Office FDs
• A Post Office FD Calculator helps compare returns across different tenures and plan investments more effectively

Tax on Post Office FD Interest

Interest earned from a Post Office Fixed Deposit is taxable under the head “Income from Other Sources” and is taxed according to your applicable income tax slab.

Key Tax Rules for FY 2025-26

• Interest income is added to your total taxable income and taxed as per your slab rate
• Investment in a 5-year Post Office FD qualifies for tax deduction up to ₹1.5 lakh under Section 80C (old tax regime)
• Senior citizens can claim deduction up to ₹50,000 on interest income under Section 80TTB

TDS Rules on Post Office FD Interest

• TDS is deducted at 10% if the interest income exceeds the specified limit
• If PAN details are not provided, TDS may increase to 20%

How to Avoid TDS?

• Submit Form 15G if you are below 60 years of age and your taxable income is below the exemption limit
• Submit Form 15H if you are a senior citizen and eligible for TDS exemption

How to Apply for a Post Office FD?

You can open a Post Office Fixed Deposit account through both online and offline methods. Here’s a step-by-step guide:

Online Method

1. Visit the India Post e-banking portal.
2. Log in using your User ID and password.
3. Go to the ‘General Services’ section and select ‘Service Request’.
4. Choose the option to open a new Post Office FD account.
5. Follow the on-screen instructions and complete the application process.

Offline Method

1. Visit your nearest India Post branch.
2. Collect the Post Office FD account opening form.
3. Fill in the application form along with the KYC form, if required.
4. Submit the form along with the necessary KYC documents.
5. After verification, the Post Office will process your application and activate the FD account.

Documents Required to Book Post Office FD

Opening a Post Office Fixed Deposit account requires submitting basic KYC documents along with the account opening form. The list of required documents is given below:

• KYC form (for modification of details or a new Post Office customer)
• PAN card
• Aadhaar Card
• Identity or address proof documents such as Voter ID card, Passport, Driving licence, MNREGA job card, Letter issued by the National Population Register, etc.
• For minor accounts:
• Birth certificate or valid proof of date of birth
• KYC documents of the legal guardian
• KYC details of the legal guardian for the minor account
• KYC documents of all the account holders for a joint account

Eligibility to Open Post Office FD

The following individuals are eligible to open a Post Office Fixed Deposit account in India:

• A single adult resident Indian
• Joint accounts of up to three adults
• Joint A Account: Operated jointly by all account holders
• Joint B Account: Can be operated individually by any account holder
• A guardian on behalf of a minor
• A guardian on behalf of a person of unsound mind
• Minors above 10 years of age can open and operate the account independently

Important Points:

• There is no limit on the number of Post Office FD accounts that can be opened individually or jointly
• Minor accounts must be converted into regular adult accounts after the account holder turns 18 years old by submitting fresh KYC documents
• Post Office FD accounts can also be opened through internet banking or mobile banking facilities, subject to having a Post Office Savings Account.

Premature Withdrawal Rules For Post Office FD

Post Office Fixed Deposits allow premature withdrawal subject to certain conditions based on the FD tenure. Here are the important rules investors should know before closing their FD early:

• Post Office FDs cannot be withdrawn before completing 6 months from the date of deposit.
• If a 1-year, 2-year, or 3-year FD is closed after 6 months but before 1 year, interest will be paid at the applicable Post Office Savings Account interest rate for the completed period.
• If a 2-year or 3-year FD is withdrawn after completing 1 year, the applicable interest rate will be 2% lower than the respective FD rate for the completed years. For the remaining period of less than one year, the Post Office Savings Account interest rate will apply.
• A 5-year Post Office FD cannot be prematurely withdrawn before completing 4 years. If the account is closed after 4 years, interest will be paid at the applicable Post Office Savings Account interest rate.
• Any interest already paid on the FD will be adjusted against the final maturity or withdrawal amount at the time of premature closure.

Conclusion

Post Office Fixed Deposits continue to be a reliable investment option for individuals looking for safe and government-backed returns. With interest rates ranging from 6.90% to 7.50% p.a., flexible tenures from 1 year to 5 years, and tax-saving benefits on 5-year deposits. Post Office FDs are suitable for both short-term savings and long-term financial planning. Before investing, compare different tenures, calculate maturity returns using a Post Office FD calculator, and choose the option that best matches your financial goals and liquidity needs.