Post Office Time Deposit rate for July-September 2026: How it compares with SBI, PNB, HDFC, ICICI

Post Office Time Deposit: Key details

This scheme offers fixed-term deposit accounts in four tenures. The maximum interest rate is 7.5% at present. The following are the interest rates for all four 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%

Is it still better than SBI, HDFC, ICICI, PNB and other banks?

Yes, in terms of interest rates of comparable tenures, the Post Office Time Deposit is better than fixed deposits at banks like SBI, HDFC Bank, ICICI Bank, Punjab National Bank (PNB) and others

The interest on post office time deposits is compounded quarterly and credited to the account holder at the end of each year. The deposits become repayable after the expiry of 1 year, 2 years, 3 years, and 5 years, as the case may be, from the date of opening.

A Post Office Time Deposit account can be opened by a single adult or jointly by up to 3 adults. A guardian on behalf of a minor, or a guardian on behalf of a person of unsound mind, can also open this account. Moreover, a minor above 10 years can also have a time deposit account in his own name.

While there is no maximum deposit limit for the Post Office Time Deposit account, the minimum deposit is capped at ₹1000. Investment up to ₹1.5 lakh in a 5-year Post Office Time Deposit account also qualify for tax deduction under Section 80C of the Income-tax Act, 1961 (Section 123 of Income-tax Act 2025). However, this benefit can be availed only under the Old Tax Regime.