Post Office savings: How can you earn 7.7% interest

New Delhi: Most of the middle-income groups, salaried-class people and a large section of risk-averse investors remain in a continuous lookout for risk-free opportunities which can give better returns as compared to conventional investment options such as fixed deposits, recurring deposits and insurance scheme. Post Office offers various investment options for the varied requirements of customers. Post Office time deposit account is one such savings facility which offers interest up to 7.7 per cent.


Post Office time deposit (TD) account can be opened by resident individuals by cash, cheque. The Post Office time deposit account will be opened on the date of realisation of cheque amount in case of cheque deposits. The interest on Post Office term deposit account is payable annually but it is calculated quarterly. Interestingly, a person can start Post Office time deposit account with a minimum of Rs 100 and in multiples of Rs 100, thereafter. Post Office has not placed an upper ceiling on the deposits.

Post Office provides an interest of 6.9 per cent on all the time deposit accounts opened for 1 year, 2 years and 3 years, whereas the interest on 5-year Post Office time deposit account is fixed at 7.7 per cent. The interest rates on Post Office time deposit account were last revised on July 01, 2019. Moreover, the investment under five Years time deposit account qualifies for the benefit of Section 80C of the Income Tax Act, 1961, with which individuals can claim a tax deduction of up to Rs 1.5 lakh on investment.

Post Office time deposit (TD) account features

  • A person can nominate others at the time of opening and also after opening of the account. Joint account can be opened by two adults, while a single account can be converted into Joint & vice-versa.
  • Post Office TD account can be transferred from one post office to another and a person can open any number of TD accounts in any post office
  • Post Office TD account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account, India Post said. Minors after attaining majority have to apply for conversion of the account in their name.
  • In core banking solution (CBS) Post Offices, a TD account will be automatically renewed for the period for which the account was initially opened after completion of maturity period. Interest rates applicable on the day of maturity will be applied.