Tenure: 5 Years

Rate of Interest

1Year 2Years 3Years 5Years
5.50.% 5.50.% 5.50.% 6.70.%

type  OF INTEREST Fixed For the Tenure

MODE OF CALCULATION: payable annually but calculated quarterly


Rs. 1,000/- In multiples of Rs. 100/-

Maximum Amount Limit

No Maximum Limit

Who can Invest

  • (i) a single adult

  • (ii) Joint Account (Maximum 3 adults)

  • (iii) Minor above 10 years of age

  • (iv) A guardian on behalf of a minor

Post Office Term Deposit Scheme

The post-office term deposit (POTD) is similar to a bank fixed deposit, where you invest money for a fixed period of time, earning a fixed return through the tenure of the deposit. At the end of the deposit's tenure, the maturity amount comprises the capital deposited and the interest it earns. The interest rate on the POTD is guaranteed for the tenure one opts for. The POTD is liquid, despite the deposit lock-in. One can borrow against the deposit or withdraw the deposit prematurely.


  • Account holder can be individual, joint or minor above the age of 10 years

  • Account cannot be opened by NRIs/ HUF

  • Minimum amount of deposit is Rs 200/- and there is no maximum amount

  • Facility of redeposit is available after maturity

  • Account can be closed after 6 months but before 1 year without interest

  • Interest income is tax payable

  • Deposits are exempted from Wealth Tax

  • No TDS

  • Interest is payable annually but is calculated quarterly

  • Interest rate is fixed at the time of investing and stays the same for entire tenure

  • Nomination facility is available

  • Account can be transferred from one post office to any other in India

Documents Required 

  • 2 photographs

  • along with a self-attested copy of PAN Card and Aadhaar Card

Revised Rates

w.e.f. 30-06-2020