India Post currently offers a range of financial services at designated post offices. The Post Office Time Deposit Account (TD) is a popular investment option and can be opened in any nearby post office easily with a minimum Rs 1,000. 

India Post, the trade name of the Department of Posts, has been operational since 1854. With more than 1.55 lakh offices throughout India, it is the most widely distributed post network in the world.

There is no maximum limit on this scheme and the investments can be increased in the multiples of Rs 100. If you are looking to invest in small savings schemes, then you must know about this scheme.

Features of Post Office Time Deposit Scheme

Few of the requisite details regarding investment in the post office term deposit are as follows –

1. Eligibility and joint accounts

Any individual above the age of 10 can open a time deposit account at any post office. Further, guardians can open an account on behalf of a minor. However, the minor has to apply for ownership of the account after he or she reaches the requisite age.

Accounts can also be held jointly by up to 3 individuals. Depositors can also nominate a person before or after opening an account.

One of the primary benefits of post office time deposits is that individuals can create multiple accounts without any restriction. Depositors also have the freedom to transfer their accounts from one post office to another.

2. Multiple lock-in periods

Depositors get the option to open a time deposit account for 1, 2, 3, and 5 years. However, account tenure can be extended by giving a formal application to the post office.

3. Income tax benefits 

Income tax benefits are available only for a 5-year post office time deposit account. Depositors will be able to claim income tax exemptions of up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961.

4. Lucrative returns 

The rates of interest applicable on a National Savings Time Deposit Account is listed below –

Tenure Rate
1 year 5.5%
2 year 5.5%
3 year 5.5%
5 year 6.7%

Eligibility Criteria

The Post-Office Time Deposit (POTD) Account Scheme can be opened by any person who satisfies the below criteria.

  • Any Indian who is over 18 years of age.
  • Two persons jointly (Minors of age over 10 years and above can open the account jointly with their guardian)
  • Parent or guardian can open this Time Deposit account on behalf of a minor.


  • Group Accounts, Institutional Accounts and Miscellaneous account not permissible.
  • Trust, Regimental Fund or Welfare Fund not permissible to invest.

Post Office Time Deposit Interest Rates

The interest rate provided would be of 7.4% on Time Deposit  Account of a post office for 5 years. Kindly refer the below table to know about current interest rate applicable to post office fixed deposit.

Period Rate
1 Year Account 7.00%
2 Year Account 7.00%
3 Year Account 7.00%
5 Year Account 7.80%

The fixed deposit rates mentioned in the post office are variable and changes from time to time. Hence, make sure to check the current post office fixed deposit interest rate, before opening an account. The above interest rates are reviewed every quarter by the Finance Ministry.

Steps to open a post office time deposit account online

Customers can open a fixed deposit or time deposit account in any post office in India, both offline or online. But before opening an account online some prerequisites must be met such as an active mobile number and email ID, a savings bank account, valid KYC documents, and PAN Card.

  • Visit and sign in to your account using the required credentials i.e. User ID and Password.
  • Now under the ‘General Services’ section, click on the ‘Service Request’ option.
  • Now click on ‘New Request’ to make a request for opening a TD account.
  • Now fill the application form with all the required details correctly.
  • Make the initial contribution and click on ‘Submit’
  • Upon successful submission, you will get a confirmation alert on your registered email ID.