The Department of Posts offers fixed deposits under the National Savings Time Deposit Account. Interest rates for post‑office FDs are reviewed quarterly by the Ministry of Finance. For the July–September 2025 quarter, rates range from 6.90 % to 7.50 % per annum depending on tenure. The scheme is backed by the Government of India and hence considered very safe.
Post Office FD Rates and Features (July–Sept 2025)
| Tenure | Interest rate (general) | Notes |
|---|---|---|
| 1 year | 6.90 % | Compounded quarterly; interest payable annually |
| 2 years | 7.00 % | Minimum deposit ₹1,000; no upper limit |
| 3 years | 7.10 % | Account can be opened singly or jointly |
| 5 years | 7.50 % | Eligible for Section 80C tax deduction |
Eligibility
Any Indian resident can open a post‑office FD individually or jointly. Minors can open accounts under guardian supervision. Depositors can prematurely close the account after six months with a penalty. Because rates change every quarter, prospective investors should verify the latest interest rates at their local post office or on the official India Post website.
