India Post Time Deposit schemes offer varying interest rates

India Post offers various Time Deposit (TD) schemes under the National Term Deposit Scheme, providing guaranteed returns backed by a sovereign guarantee from the central government. Current interest rates for these schemes vary based on the investment tenure.

For a 1-year deposit, the interest rate is 6.90%. A 2-year deposit offers 7.00%, while a 3-year deposit provides 7.10%. The 5-year term offers the highest rate at 7.50%. Interest is calculated on a quarterly compounding basis, though payments are credited annually to the investor's savings account.

Investors can open accounts individually or as joint accounts, and guardians may open accounts on behalf of minors. The minimum investment starts at ₹1,000, with subsequent investments in multiples of ₹100. Notably, the 5-year TD scheme provides tax benefits under Section 80C of the Income Tax Act, 1961, for investments up to ₹1.5 lakh under the old tax regime.