For investors worried about falling interest rates on fixed deposits, Post Office PPF and Time Deposit schemes are excellent options. They are not only safe but also offer more stable and attractive returns than bank fixed deposits. Learn the full details of these Post Office schemes.
Add informalnewz.com as a Preferred Source
Post Office Returns: The Reserve Bank of India (RBI) has cut the repo rate three times this year. This has also led banks to reduce interest rates on fixed deposits (FDs). This has created a significant problem for those who rely heavily on safe investment instruments like FDs, especially senior citizens. If you’re looking for a safe investment option that offers good returns in lieu of FDs, consider post office schemes.
You can open a Public Provident Fund (PPF) account at the post office in your name as well as your spouse’s name. This will earn separate interest on both accounts, giving you double the benefit. A person can deposit a maximum of ₹1.5 lakh in their PPF account in a financial year. Additionally, they can deposit up to ₹1.5 lakh in their spouse’s account. Both accounts will earn interest independently.
Similar benefits are available in time deposits as well.
You can also reap similar benefits by investing in a Post Office Time Deposit (TD) scheme. TDs work like fixed deposits—a lump sum is deposited for a fixed period and a fixed return is earned upon maturity.
Better interest rates than banks
The Reserve Bank of India (RBI) has cut the repo rate twice this year—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 continues to offer stable and attractive interest rates.
The government revises the 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 an interest rate of 7.0%, you will receive ₹2,29,776 at maturity. This means you will receive a guaranteed interest of ₹29,776.
Safe investment options
Since the post office is directly controlled by the central government, your investments are completely safe. Every deposit is backed by a government guarantee.
