Overview
Post Office Fixed Deposits (Time Deposits) remain one of India’s most trusted lowrisk savings options, especially for conservative investors and senior citizens. Backed by the sovereign guarantee of the Government of India, these deposits offer fixed, pre-declared interest rates that are revised every quarter by the Ministry of Finance.
For investors planning their 2026–27 allocations, understanding the Post Office FD interest rates for October 2026 is crucial. The rates determine your guaranteed returns across 1, 2, 3 and 5-year tenures, and also influence decisions on tax-saving 5-year FDs under Section 80C. While the current slab (valid until 30 September 2026) offers 6.90%–7.50% p.a., the official October 2026 rates will be set by the government’s new quarterly notification.
This article explains the latest Post Office FD rate structure, what to expect for October 2026, and how these rates compare with bank FDs to help you choose the right fixed-income option.
Post Office FD Interest Rates for October 2026
The Government of India has kept the interest rates for Post Office Time Deposits (Fixed Deposits) unchanged for the October–December 2026 quarter (Q3 FY 2026-27).
| Deposit Tenure | Interest Rate (p.a.) | Interest Compounding | Tax Benefit |
| 1 Year | 6.90% | Compounded Quarterly, Paid Annually | None |
| 2 Years | 7.00% | Compounded Quarterly, Paid Annually | None |
| 3 Years | 7.10% | Compounded Quarterly, Paid Annually | None |
| 5 Years | 7.50% | Compounded Quarterly, Paid Annually | Eligible under Section 80C (up to ₹1.5 Lakh) |
- India Post is expected to keep its Time Deposit (Fixed Deposit) rates steady at 6.90%–7.50% p.a. for October 2026, extending a rate freeze that has already persisted for several quarters.
- Interest is compounded on a quarterly basis but paid out annually.
- These rates have been in effect since at least the April–June 2026 quarter and were widely reported to remain in force through the second half of 2026.
Explore in Details - Post Office Fixed Deposit Scheme 2026: Eligibility, Minimum Deposit, Interest Calculation and Maturity Rules
Key Features & Rules
- Eligibility: Resident Individuals
- Minimum Deposit: ₹1,000, and in multiples of ₹100 thereafter, with no maximum deposit limit.
- Compounding Frequency: Interest is calculated and compounded quarterly, but paid annually into your Post Office Savings Account.
- Senior Citizens: India Post does not offer a separate higher interest rate for senior citizens on standard Time Deposits; the same rates apply to all individuals. (For higher rates, consider the Senior Citizen Savings Scheme at 8.2% p.a.)
- Tax Treatment:
- Interest is taxed as per applicable slab rate.
- 5-year fixed deposit qualify for deduction u/s 80C up to ₹1.5 lakh under the old tax regime.
- TDS may also apply if the interest crosses ₹50,000 for individual (age below 60 years) and ₹1,00,000 for senior citizens (age above 60 years).
Premature Withdrawal
- No withdrawal is permitted before 6 months.
- If closed after 6 months but before 1 year, the standard Post Office Savings Account rate (4.0% p.a.) applies.
- If closed after 1 year, interest is reduced by 2% from the applicable TD rate for the completed years.
What to expect specifically for October 2026?
- India Post reviews small-savings scheme rates on a quarterly basis, usually announcing any changes near the start of each quarter (April, July, October, and January).
- Ahead of the October 2026 review, media reports suggested that all four Time Deposit rates would likely remain unchanged, extending the rate freeze into a tenth straight quarter.
- Unless the government issues a fresh notification revising small-savings rates for Q3 FY27 (October–December 2026), the 6.90%–7.50% p.a. structure outlined above should continue to apply in October 2026.
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