INCOME TAX27 Sept 2026
₹10 lakh in 3-year Post Office TD vs 5-year TD: Which earns more interest? Check out the calculations | Mint
If you're parking ₹10 lakh in a Post Office Time Deposit this quarter, the government has kept rates at 7.1% for three years and 7.5% for five years. The five-year option earns about ₹3.75 lakh interest against ₹2.13 lakh for three years, but locks your money two extra years. It also qualifies for Section 80C. Interest stays taxable, so check the current rate before opening.
Key Statutory Highlights
- For July-September 2026, Post Office Time Deposits pay 7.1% a year for three years and 7.5% for five years.
- On ₹10 lakh, the five-year deposit earns about ₹3.75 lakh in interest, against about ₹2.13 lakh for the three-year deposit.
- Only the five-year deposit qualifies for the Section 80C deduction, and the interest earned on the deposit is taxable.
Actionable Advice for Taxpayers / Founders:Before opening a Post Office Time Deposit, check the rate on the India Post website for the current quarter, because small-savings rates are reviewed every quarter, and pick the tenure based on when you actually need the money.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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