Post Office Time Deposit interest rates July-September 2025: What you can get for 1-5 year fixed deposit

Post Office Time Deposit interest rate for July-September 2025: The Ministry of Finance announced the interest rate of Post Office Time Deposit (TD), or fixed deposit (FD), for the July-September quarter of FY 2025-26 on Monday, June 30, 2025.

The Post Office is currently offering fixed deposits in four tenures, with the maximum interest rate capped at 7.5%. The following are the interest rates for Post Office FDs of various tenures:

• 1-year Post Office Time Deposit: 6.9%

• 2-year Post Office Time Deposit: 7%

• 3-year Post Office Time Deposit: 7.1%

• 5-year Post Office Time Deposit: 7.5%

The Finance Ministry has decided to keep the above interest rates unchanged for the July-September quarter.

The interest earned from post office fixed deposits is payable annually, but it is calculated quarterly.

Who can invest in Post Office Time Deposit/Fixed Deposit?

The Post Office Time Deposit account can be opened by the following:

• a single adult
• Joint Account (up to 3 adults) (Joint A or Joint B)
• a guardian on behalf of minor
• a guardian on behalf of person of unsound mind
• a minor above 10 years in his own name.

Interestingly, like NSC, Post Office TD also allows minors above 10 years to have an account in their name.

There is no limit on the maximum deposit an individual can make in a Post Office FD account. The minimum deposit limit is ₹1000, and thereafter in multiples of ₹100.

Moreover, deposits in a 5-year Post Office Time Deposit also qualify for deduction under Section 80C in the Old Tax Regime.

Post Office Time Deposit interest rate: What was expected?

The Post Office Time Deposit interest rate was last revised on April 1, 2024 for the 3-year tenure. Interest rates for deposits of other tenures have remained unchanged.

Compared to banks, the Post Office is currently offering better returns on FDs of 1-year, 2-year, 3-year, and 5-year tenures. However, the returns are likely to be reduced today.

The repo rate has resulted in a fall in the secondary market yield of Central Government securities (G-secs), which is considered for determining the interest rates for small savings schemes like Post Office Time Deposit.

However, it was also expected that the Government may keep the Post Office FD interest rate unchanged, as the scheme helps millions of depositors, especially those in rural areas and small towns, including senior citizens, by providing them with a guaranteed source of income against lump sum deposits.