Historically, Post Office FDs have offered some of the most reliable and competitive returns. As of 26th November 2025, you can earn 6.90% p.a. on a 1-year Post Office FD. Moreover, since these are government-backed FDs, your money is 100% secure.
If you have short-term goals—like planning a trip or buying a new gadget—you can choose a fixed deposit with small tenure in India. But before you invest, make sure to check the latest Post Office 1-year FD interest rate and understand the key Post Office FD benefits and features to make an informed decision.
Latest Post Office 1-Year FD Rate in India
As of 26th November 2025, the Post Office 1-year FD rate in India is 6.90% p.a. Post Office interest rates are revised by the government every quarter. So the current 1-year Post Office FD rate is applicable for the September to December quarter of 2025.
Typically, banks and NBFCs offer higher FD rates for senior citizens. However, this is not the case for Post Office FDs. Simply put, the 1-year Post Office FD rate in India is the same for both regular depositors and senior citizens.
The following table outlines the current 1-year Post Office FD interest rate for 2025:
| Tenure | Post Office FD Interest Rate (2025) for Regular Depositors | Post Office FD Interest Rate (2025) for Senior Citizens |
|---|---|---|
| 1 year | 6.90% p.a. | 6.90% p.a. |
Note: The interest rates mentioned above are valid as of 26th November 2025. Rates are subject to change. Please verify the latest rate before investing.
How Much Can You Earn from a Post Office 1-Year FD: An Example
Let’s take an example to understand how much you can really earn from the current Post Office 1-year FD rates. Let’s assume you invest a principal of ₹1,00,000 for 1 year at 6.90% p.a. This means:
- Principal: ₹1,00,000
- Quarterly Rate: 1.725% (6.90% ÷ 4)
- Effective Annual Rate: 7.08%
- Interest Earned: ₹7,081
- Maturity Amount: ₹1,07,081
1-Year FD Interest Rate Review: Post Office vs. Banks (2025)
If you’re checking the Post Office FD 1-year rate in India, it’s important to compare it with leading bank FD rates. As of 26th November, Suryoday Small Finance Bank offers the highest 1-year FD rate for regular and senior citizens.
The following table reviews the 1-year Post Office FD interest rate and the highest bank FD rate for the same period:
| Institution | 1-Year FD Interest Rate for Regular Depositors | 1-Year FD Interest Rate for Senior Citizens |
|---|---|---|
| Post Office FD | 6.90% p.a. | 6.90% p.a. |
| Suryoday Small Finance Bank | 7.40% p.a.* | 7.60% p.a.* |
*Rates applicable on FDs below 3 Crore.
Note: The interest rates mentioned above are valid as of 26th November 2025. Rates are subject to change. Please verify the latest rate before investing.
Features of Post Office 1-Year FDs
Now that you know the current Post Office FD 1-year rate in India, let’s understand the key features of these deposits:
| Key Feature of a 1-Year Post Office FD | |
|---|---|
| FD Tenure |
|
| Rate of Interest (p.a.) 2025 |
|
| Minimum Deposit Amount |
|
| Maximum Deposit Amount |
|
| Eligibility |
|
| Types of Accounts |
|
| Interest Calculation |
|
| Interest Payment |
|
| Premature Withdrawal |
|
| Payment Mode |
|
| Nomination Facility |
|
| Auto Renewal Option |
|
Benefits of Post Office 1-Year FDs
A 1-year Post Office FD is a popular choice in India for people looking for a safe and short-term investment. To make things easier, we’ve listed all 1-year Post Office FD benefits below:
1. Low Minimum Deposit Requirement
You can start a 1-year Post Office FD with just ₹1,000. You can invest in multiples of 100 and there is no cap on the maximum investment amount. The low account opening amount makes it easy for you to begin investing without needing a large savings balance.
2. Higher Interest Rates than Savings Accounts
Currently, the 1-year Post Office FD interest rate stands at 6.90% p.a. while the savings account interest rate range from 2%-3%. This means, opening a 1-year Post Office FD can help you earn more interest on your money, helping you grow your savings faster with a short-term deposit.
3. Capital Protection
These are government-backed FD accounts so the capital you invest remains 100% safe. You don’t have to worry about default or market risks, making it a reliable option for secure short-term investing, especially for risk-averse investors.
4. Better Liquidity
Liquidity is another key benefit of a Post Office FD for one year. A fixed deposit with a small tenure in India offers you higher liquidity compared to a longer-term FD (like say, a 5-year FD). You can also withdraw funds after 6 months if needed, post penalties. So, if you anticipate needing funds within the next year, a 1-year Post Office FD may be a good choice.
5. Ease of Investment
Opening a Post Office FD is simple. All you have to do is visit your nearest India Post branch and collect the FD form. Next, fill-up the essential details in the form and submit it along with your proof of identity and proof of address documents.
Who Should Consider a 1-Year Post Office FD?
A 1-year Post Office FD may be suitable for:
- Anyone looking for a safe government-backed FD with guaranteed capital safety.
- Investors who want stable returns without market risk.
- People with short-term goals like planning a vacation or preparing for an upcoming purchase.
- Anyone looking to keeping surplus money secure for a short period.
- Those wanting better returns than a savings account.
- Investors who anticipate needing the funds within a year.
Comparing 2025 Post Office FD Interest Rates for Different Tenures
Besides the 1-year plan, you can open Post Office government-backed FDs in different tenures to match your savings goals. Here’s how Post Office FD interest rates for 2025 compare across different tenure options:
| Fixed Deposit Tenure | Post Office FD Interest Rates (2025) |
|---|---|
| 1 year | 6.90% |
| 2 years | 7% |
| 3 years | 7.10% |
| 5 years | 7.50% (Highest) |
Note: The interest rates mentioned above are valid as of 26th November 2025. Rates are subject to change. Please verify the latest rate before investing.
The Bottom Line on Post Office 1-Year FD Rates
1-year Post Office FD benefits include a sovereign guarantee and easy liquidity, making them ideal for short-term savings and low-risk investors. Based on the current Post Office 1-year FD rate in India, you can earn 6.90% p.a. on your deposits. While this gives you competitive returns which are better than most public banks, some small finance banks offer higher rates.
If you want more, you can head to the GoldenPi platform. Here you’ll find 1-year FDs from leading banks and NBFCs like Suryoday Small Finance Bank, Bajaj Finance, Shriram Finance, and more. With better rates, you can help your savings grow faster!
Post Office FD 1-Year Rate In India FAQs
1. What is the 2025 Post Office FD interest rate on a 1-year FD?
As of 26th November 2025, Post Office 1-year FD interest rate is 6.90% p.a. This rate is applicable to both regular depositors and senior citizens.
2. How is interest on a 1-year Post Office FD calculated?
Interest on a one-year Post Office FD is calculated using the compound interest formula. Here, interest compounds on a quarterly basis. But do note that your FD interest will be paid on an annual basis.
3. Can I make premature withdrawals from my 1-year Post Office FD?
Yes. According to current government rules, you can close your Post Office FD after 6 months. However, if you withdraw anytime between 6 months and 1 year, you will receive interest at the Post Office Savings Account rate for that period.
4. Are there any tax benefits on a 1-year Post Office FD?
No. interest income you earn from a 1-year Post Office FD is added to your annual income, which is subject to taxation as per your income tax slab.
If you want to save on taxes u/s 80(C) on the principal invested, you can book a 5-year Tax-Saving Post Office FD that comes with an interest rate of 7.50% p.a.
Disclaimer:
This information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the securities market are subject to market risks. Read all the offer-related documents carefully before investing.
Fixed Deposit schemes are offered by Utkarsh Small Finance Bank, which is regulated by the Reserve Bank of India. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.
