The Post Office Time Deposit Account is the post office's version of a bank fixed deposit or term deposit. You can open it for 1 year, 2 years, 3 years or 5 years. If you choose 5 years, you get an income tax deduction under Section 80C (section 123 of the Income-tax Act, 2025), if you use the old tax regime.
Who can invest in this scheme
Under the National Savings Time Deposit Scheme, 2019, these investors can open a Post Office Time Deposit Account:
- A single adult
- Up to three adults jointly
- A guardian, on behalf of a minor or a person of unsound mind
- A minor aged 10 or more, in their own name
You can move the account to any other post office, and you can open as many time deposit accounts as you like. When the account matures, it isn't renewed automatically. You can choose to extend it for the same period, either when you open it or by applying after maturity: within 6 months for a 1-year deposit, 12 months for a 2-year deposit, and 18 months for a 3-year or 5-year deposit. The extended deposit earns the rate in force on the date of maturity.
NRIs, however, can't invest in post office time deposits.
How to open a Post Office Time Deposit Account
You can open the account at any head post office or any post office you choose. Go to the post office, fill in the form, hand over the documents and make the payment.
Documents required: your Aadhaar (mandatory for all small savings accounts since 2023) and PAN, plus copies of your address and identity proof, such as a passport or voter ID card. Take the originals along too, for verification when you open the account.
You can name a nominee on the form, and you'll need a witness to sign it.
For the first deposit, fill in a pay-in slip. You can pay by cash or cheque. The minimum deposit is 1000 rupees, in multiples of 100 rupees, and there is no upper limit. Each account takes a single deposit.
Interest rates (October to December 2026)
| Lock-in period | Interest rate |
|---|---|
| 1 year | 6.90% |
| 2 years | 7.00% |
| 3 years | 7.10% |
| 5 years | 7.50% |
The government reviews these rates every quarter, and the rate on the day you open the account stays fixed until maturity. Interest is compounded quarterly and paid once a year. The interest you earn is taxable.