For investors worried about falling interest rates on FDs, Post Office’s PPF and Time Deposit schemes are the best options. These are not only safe, but also give more stable and attractive returns than bank FDs. Know the complete details of the Post Office scheme.
Post Office Returns: The Reserve Bank of India (RBI) has cut the repo rate thrice this year. Due to this, banks have also reduced the interest rate on fixed deposits (FD). In such a situation, it has become a big problem for those people, who depend more on safe means like FD for investment. Especially, for senior citizens. If you also want a safe investment option that gives good returns instead of FD, then you can look at the schemes of the post office.
You can open a Public Provident Fund (PPF) account in the post office in your name as well as in the name of your spouse. This will give different interest on both the accounts, that is, you can get double benefit. A person can deposit a maximum of ₹ 1.5 lakh in his PPF account in a financial year. Also, he can deposit up to ₹ 1.5 lakh in his wife’s account. Interest will be available independently on both accounts.
Similar benefit is also available in time deposit
You can avail similar benefits by investing in the post office’s time deposit (TD) scheme. TD works like a fixed deposit – a lump sum amount is deposited for a fixed period and a fixed return is received on maturity.
Better interest rates than banks
This year, the Reserve Bank of India (RBI) has cut the repo rate twice – by 0.25% in February and April, bringing it down from 6.50% to 6.00%. As a result, most banks have reduced fixed deposit interest rates, but the post office is still offering stable and attractive interest rates.
The government revises interest rates on small savings schemes of banks and post offices every three months.
Current Interest Rates on Post Office TD (2025)
| Tenure | Interest Rate |
| 1 year | 6.90% |
| 2 years | 7.00% |
| 3 years | 7.10% |
| 5 year | 7.50% |
These rates are the same for all investors. For example, if you invest ₹2 lakh in a 2-year TD at 7.0% interest rate, you will get ₹2,29,776 on maturity. That is, you will get a fixed interest of ₹29,776.
Safe Investment Options
Since the post office comes directly under the control of the central government, the investment made here is completely safe. Every deposit of yours is under the guarantee of the government.
