While banks have reduced FD interest rates amid RBI’s repo rate cut, the post office is offering a guaranteed return of 7.5% on its 5-year TD scheme. By depositing just ₹2 lakh, one can earn a guaranteed interest of ₹89,990.
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The Reserve Bank of India (RBI) has once again cut the repo rate by 0.25%. This is the fourth time this year that the repo rate has been reduced, bringing the total reduction to 1.25% in 2025. This decision by the RBI has had the greatest impact on bank fixed deposits (FDs), prompting many banks to reduce interest rates. At a time when returns on bank FDs are steadily declining, the post office continues to offer its customers the same high interest rates.
This is why post office savings schemes are once again becoming a top choice for investors. Today, we’re telling you about a special post office scheme where you can earn a guaranteed interest of ₹89,990 by depositing just ₹200,000 in a joint account, without any market risk.
Post Office TD Scheme: Interest up to 7.5%, many times better than banks
Time Deposit (TD) accounts at the Post Office are open for 1, 2, 3, and 5-year periods. Current interest rates are as follows:
1 year – 6.9%
2 years – 7.0%
3 years – 7.1%
5 years – 7.5%
The most attractive option is the 5-year TD scheme, which offers a bumper 7.5% interest rate. Its special feature is that it can be opened as a single or joint account. A joint account can hold up to 3 people.
This interest rate is significantly higher than banks, as no major bank currently offers 7.5% interest on 5-year FDs. In the Post Office scheme, people of all ages receive the same interest rate, while banks only offer extra interest to senior citizens.
Depositing ₹2,00,000 will earn you ₹89,990 in guaranteed benefits.
If you and your wife deposit ₹2,00,000 in a joint account under the 5-year TD scheme, you will receive a total of ₹2,89,990 upon maturity.
This includes:
Principal – ₹2,00,000
Total Interest – ₹89,990 (Fixed, Fixed Return)
Your money is safe in this scheme and the returns are higher than those of a bank. Whether the market fluctuates or interest rates fall, the returns of the Post Office TD scheme remain the same. Therefore, if you deposit ₹2,00,000 in a joint account with your wife in the 5-year Post Office TD scheme, you will receive a total of ₹2,89,990 upon maturity, including a fixed interest of ₹89,990. (Note: This article is for informational purposes only and should not be construed as investment advice. It’s recommended to consult a financial advisor before making any investment decisions.)
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