Post Office Time Deposit interest rate October-December 2025: FinMin to announce today

At present, the Post Office is offering time deposits in four tenures, with the maximum interest rate of 7.5%. The interest rates for all four tenures of Post Office TDs are below:

• 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 deposit amount under Post Office TD is repayable after the expiry of 1 year, 2 years, 3 years and 5 years, as the case may be, from the date of opening.

The interest under this scheme is compounded quarterly and paid to the account holder at the end of each year during the period of deposit.

Who is eligible to invest in a Post Office Time Deposit account?

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

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

Like the National Savings Certificate, the Post Office TD allows minors above 10 years to have an account in their name.

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

Deposits in a 5-year Post Office Time Deposit account qualifies for deduction under Section 80C of the Income Tax Act, 1961 under the Old Tax Regime.

Post Office Time Deposit interest rate: What's expected?

The Finance Ministry is expected to revise the interest rates on Post Office Time Deposit for the October-December quarter.

Interest rates on other small savings schemes like PPF, KVP, SSY, SCSS and NSC are also expected to be revised.

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

Compared to top banks like SBI and HDFC, the Post Office is currently offering better returns on 1-year, 2-year, 3-year, and 5-year deposits. Moreover, Post Office deposits offer a sovereign guarantee on the entire deposit.

In 2025, banks have reduced their fixed deposit interest rates as the Reserve Bank of India (RBI) has reduced the repo rate by 1% since February 2025.