Central Government Post Office Time Deposit Scheme: 7.5% Interest for 5 Years — Start with ₹1,000, Tax Saving Too

8 November 2026, 9:16 AM • Harish Sharma • Category: All India Schemes

📌 Key information

News: Central Government Post Office Time Deposit Scheme: 7.5% Interest for 5 Years — Start with ₹1,000, Tax Saving Too
Date: 8 November 2026, 9:16 AM
Author: Harish Sharma
Category: All India Schemes
Source: See the official portal for details — the link is inside the story.

The Central Government’s Post Office Time Deposit (TD) Scheme is a safe deposit scheme of the post office. Deposits can be made for 1, 2, 3 and 5 years. Interest rates for October–December 2026 are — 1 year 6.9%, 2 years 7.0%, 3 years 7.1% and 5 years 7.5% per annum. An account opens with just ₹1,000 and there is no maximum limit on the deposit.

Interest rates and tenure

Interest rates are fixed every quarter (by a Ministry of Finance notification). For the October–December 2026 quarter: 6.9% for 1 year, 7.0% for 2 years, 7.1% for 3 years and 7.5% for 5 years. Interest is compounded annually and paid on maturity.

Tax saving — only on the 5-year deposit

A 5-year Time Deposit gets a deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act — but only under the Old Regime. The 1, 2 and 3-year deposits get no 80C deduction. TDS may also apply on the interest.

Early withdrawal — the new rule for the 5-year deposit

After G.S.R. 830(E), 7 November 2023 (in force from 9 November 2023): a 5-year deposit opened on or after 9 November 2023 can be closed early only after 4 years — and then interest is paid at the Savings Account rate for the whole period. Deposits opened before 9 November 2023 follow the old rules. Rules for 1, 2 and 3-year deposits are different — ask your post office for details.

How to open an account

An account can be opened at any post office — with Aadhaar card, PAN card and a passport-size photo. An account can also be opened in the name of a minor (through a guardian). An account can also be joint.

Frequently Asked Questions

Q1: How much interest does a Post Office Time Deposit pay?
A: In October–December 2026: 6.9% for 1 year, 7.0% for 2 years, 7.1% for 3 years and 7.5% for 5 years per annum.

Q2: Does the 5-year deposit give tax saving?
A: Yes — a deduction of up to ₹1.5 lakh under Section 80C, only under the Old Regime.

Q3: Can a 5-year deposit be closed early?
A: A deposit opened on or after 9 November 2023 can be closed early only after 4 years — then interest is paid at the Savings Account rate for the whole period.

Q4: How much is needed to open an account?
A: Just ₹1,000 — and there is no maximum limit on the deposit.

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