Post Office Time Deposit Account Interest Rate 2018 / Calculator / Form –Complete Details

Published Date - 28 March 2018 01:53:24 Updated Date - 19 April 2018 10:32:16

Post Office Time Deposit Accounts offers the facility of investing surplus funds at relatively higher rates of interest. The deposits made under this scheme for a period of 5 years are also eligible for tax benefits under section 80C of Income Tax Act.

Post Office Time Deposit Scheme is similar to a bank fixed deposit, where you can deposit money for a fixed time period and earn a guaranteed return on that. This is a good investment option for those who want to deposit a lump sum for a fixed tenure. You will get the deposited amount along with the interest earned on it at the time of maturity.

In rural and suburban areas, Post Office FD schemes are more preferred compared to Bank FDs. You have the option to choose from 1, 2, 3 and 5 year post office time deposit account. The interest rates are different for different term period, whereas, five year FD being the highest.


The different types of savings account schemes offered by post offices are mentioned below:

Post office time deposit scheme is one of the savings account schemes offered by the post offices to the general public. It is the most sought after savings account scheme as compared to other schemes. It provides the option to the account holder to invest their extra and surplus fund to the post offices at a much elevated rate of interest. Let us take a detailed look of the various features of post office time deposit schemes:

  • The deposits made by the account holders under post office time deposit schemes have 5 year tenure.
  • This savings account scheme promises an assured return on the account holder’s investments.
  • Presently there are more than 93, 55, 825 Time deposit accounts prevalent across the country.
  • The time deposit accounts can be transferred from one post office to another. It has a flexible approach.
  • The account holder can enjoy the privilege to extend their deposits upon the time of account maturity.
  • The proceeds of maturity that are not withdrawn by the account holder is automatically renewed for the original deposit tenure with interest rates applicable on the date of maturity.
  • The account holders have the liberty to open as many accounts as they wish in any post office.
  • Single accounts or joint account by two or more individuals can be opened.
  • Single account can be converted into joint accounts and again joint accounts can also be converted to single accounts.
  • The minimum amount required to be deposited to the post office to open this account is Rs.200.
  • There is no such limit on the maximum amount but the amount must be in multiples of Rs. 200.
  • The minimum term of deposit is 1 year and the maximum term of deposit is 5 years.
  • When the account reaches maturity period, the account gets automatically renewed for the term it was originally opened.
  • Non-resident Indians are not permitted to open Post Office time deposit accounts.
  • Group accounts, institutional accounts, trust funds, regimental funds and also welfare funds are not allowed in this scheme.
  • Tax Deducted at Source or TDS certificate is not issued to the account holder under this deposit scheme.
  • The deposit tenure ranges between 1-5 years so the account holders get the added advantage to withdraw interest on a yearly basis at compounded rates.
  • The facility of nomination is made available to the account holders by the post office. The commission of agency equals to a total of 0.5%.

Time Deposit Account Interest – Post Office TD Interest Rate 2018

TD Account can be opened in any Post Office across India. Any individual can open this account in the name of a minor or for himself or also can open joint account to earn guaranteed interest. Post Office TD Interest Rate 2018 (effective from 1 Jan 2018) is 6.6% for 1 year term deposit, 6.7% for 2 year term deposit, 6.9% for 3 years term deposit account and 7.4% for 5 year term deposit account.
Time Deposit Interest Rate (%) over the Years

Maturity Period






1 Year Time Deposit






2 Year Time Deposit






3 Year Time Deposit






5 Year Time Deposit






Post Office TD Interest is calculated quarterly but is payable annually. Any person can open any number of td accounts in post office. Even Post Office td account can be transferred from one post office to another. Any individual can open td account in cash or through cheque. People can also open TD account (FD) in various nationalized and private banks like SBI, Canara Bank, Axis Bank, HDFC Bank, ICICI Bank.

Furthermore to open an account, people can download the application form in PDF Format through the link – Post Office TD Form PDF

Post Office TD Premature Closure & Tax Benefits

All the deposits made in the term deposit account are allowed for withdrawal through td premature closure. TD Account is liquid despite the lock-in period. All the td accounts with lock-in (maturity) period of 5 years are eligible for tax benefits under s/c 8-C of IT Act, 1961 from 1 April 2007.

However TD Accounts of 1, 2 and 3 years does not gets tax exemption under 80C. The following points are applicable in case of post office td premature closure which are as follows:-

  1. TD Account is risk free and candidates can make premature closure of their td accounts after 6 months of initial deposits.
  2. In case the td premature closure period is between 6 months to 1 year than the subscribers will get an interest rate of 4%.
  3. After 1 year, post office td interest is 1% less than the interest earned on the deposit for specific tenure earns.


Eligibility for Post Office Time Deposit Schemes

Post office time deposit account is a much desired account among the various schemes offered by the post offices. Each and every individual finds a reason to open an account of this kind with the post office. But again, not all are eligible to hold a post office time deposit account. Let us have a look at who all are eligible to open this account:

  • Any single adult can open this account but he should be of Indian nationality.
  • Joint accounts by two or more adults can be opened.
  • A minor of or above the age of 10 years can open and manage this account.
  • An adult guardian can also open this type of account on behalf of the minor.
  • Non-resident Indians are not allowed to hold such type of an account.
  • Group as well as institutional accounts are not permitted.
  • Trust funds are not permitted.
  • Regimental funds are not allowed.
  • Lastly, welfare funds are also not allowed.

Post Office TD Calculator 2018 – Maximum / Minimum Amount

Candidates can open his account with minimum Rs. 200 and can make subsequent deposits in multiples of Rs. 200. There is no limit on the maximum amount of deposits in TD Account. People can keep a track of their records and calculate their interest using POTD Passbook with rules applicable to the account.

In case the TD deposits get matured in any CBS Post office then the same TD account will automatically gets renewed for the same period for which the initial account was opened. For eg – Any 2 years TD Account can automatically gets renewed for 2 years after maturity.


The needed documents for opening an account are:

  • An account opening form from your nearest post office
  • Two passport size photographs
  • Address and identity proof such as the Aadhaar card, passport, driving license, voter ID card, ration card, PAN card or declaration in Form 60 or 61 as per the Income Tax Act, 1961

Compare All Post Office Schemes

People can compare various post office saving schemes on the basis of Post Office Interest Rates Table 2018, Lock In Period (Maturity), Minimum / maximum account balance and risk factor involved through the table below:-
NSC vs PPF vs KVP vs ELSS vs SCSS vs RD vs TD vs SSY vs MIS vs PO Savings Account

Post Office Schemes

Interest Rate 2018

Lock in Period

Minimum / Maximum Investment

National Saving Certificate (NSC)

7.6% compounded p.a but payable at maturity

5 Years

Minimum amount is Rs. 100 and no Maximum limit

Public Provident Fund (PPF)

7.6% compounded yearly

15 Years

Minimum amount is Rs. 500 and Maximum amount is Rs. 1.5 lakh

Kisan Vikas Patra (KVP)

7.3% compounded yearly

9 Years 10 Months

Minimum amount is Rs. 1000 and no Maximum limit

Senior Citizen Saving Scheme (SCSS)

8.3% p.a from 31 March / 30 Sept / 31 December

5 Years

Minimum Deposit is Rs. 1000 and Maximum Rs. 15 lakh

Recurring Deposit (RD)

6.9% p.a compounded quarterly

5 Years

Minimum Rs. 10 per month and Maximum no limit

Time Deposit Account (TD)

6.6% to 7.4% p.a calculated quarterly

1 to 5 Years

Minimum Rs. 200 and no Maximum Limit

Sukanya Samriddhi Yojana (SSY)

8.1% p.a compounded annually

Till 21 years

Minimum Rs. 1000 and Maximum Rs. 1.5 lakh

Post Office Monthly Income Scheme (MIS)

7.3% per year payable monthly

5 years

Minimum Rs. 1500 and Maximum Rs. 4.5 lakh

Post Office Savings Account

4% p.a

No Lock In Period

Minimum Balance Rs. 50 (non-cheque) and Rs. 500 (cheque) and Maximum Rs. 1 lakh

Time Deposit Account Interest Rate 2018 is similar to the Interest of RD. Moreover, RD Interest is paid quarterly while TD Interest is paid yearly but calculated quarterly. People can also make td login at website of Post Office TD Account Check Online.

TD Nomination Facility

Subscribers are allowed to multiple accounts in any post office as well as joint TD accounts. People can open this type of account in the name of a minor below 10 years or for themselves. Nomination Facility is available at the time of account opening and even after opening the td account.

In TD accounts, subscriber can operate more than 1 accounts in individual capacity or jointly. After 10 years, minor must convert TD account in his name. There is no maximum limit on the deposits made by an individual. People can convert their single account to joint account and vice versa.

Post Office Time Deposit – Highlights at a Glance

All the people who want to save their money for a defined time period and assured returns can open a TD Account. The important features and highlights of Post Office TD Account are as follows:-
Time Deposit Account – Post Office TD Calculator and Salient Features


TD Interest Rate 2018, Periodicity

Minimum Term Deposit Account Opening Balance and Maximum Balance

TD Interest Rate 2018 currently varies from 6.6% to 7.4% per annum quarterly calculated while payable yearly (effective from 1 Jan 2018). This post office td interest is 6.6% for 1 year account, 6.7% for 2 year account, 6.9% for 3 year account and 7.4% for 5 year account.

Minimum td account opening balance is Rs. 200 and candidates can deposit any further amount in its multiples. There is no maximum limit.

Important Features

  • All the subscribers who wishes to open td account in PO can deposit the initial money through cash / cheque.
  • Any Indian Resident can open this td account. 2 or more adults combined can open Joint Account.
  • Subscribers can transfer their td account from 1 post office to other.
  • Any subscriber can open any number of td accounts in a post office.
  • A individual can also open TD Account in the name of a minor. Minors above 10 years of age can open as well as operate their td accounts in Post Offices. For this, minors have to fill a conversion form to convert account in his name.
  • Even 2 or more adults can open a joint account which they both can operate. For this, both the joint account holders must furnish their details in the Post Office.
  • Facility of Nomination is available at the account opening time and even after the account opening.
  • Post Office offers a facility of conversion of Single TD Account into Joint TD Account and vice versa.
  • 5 years Time Deposits are eligible for tax rebate under s/c 80C of IT Act.
  • Time Deposit Account automatically gets renewed after specified time duration.

Premature Withdrawal of Funds

Post office time deposit accounts permits the account holders to withdraw funds before maturity. However, a minimum of 6 months must have passed from the date of the first deposit made. This is again subject to certain norms. These conditions are as follows:

  • For accounts opened before 30.11.2011- any premature withdrawal after 6 months but before 1 year, no interest is paid for the deposit. For deposits of 2, 3 or 5 years, any premature withdrawal after the expiry of one year but before the completion of term interest to be paid is 2% less than the rate that was specified for the complete term. This rate is payable for the completed years and months.
  • For accounts opened after 31.12.2011- if a deposit is withdrawn prematurely after six months but before one year for deposit terms of 1 year, 2 year, 3 year and 5 years, the basic rate of interest mentioned in the post office savings account from time to time is payable. However, after the expiry of one year from the date of deposit for 2, 3 and 5 year deposit terms, the rate of interest is payable only for the years and months completed from the date of deposit to the date of withdrawal and is 1% less than the rate of interest specified by the post office savings account for the complete tenure.

For more details, visit the official website


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