AI SummaryNational Savings Time Deposit (TD) scheme offers a secure way to save money for a fixed period with guaranteed interest rates. It is an ideal investment for individuals seeking reliable returns with flexible deposit amounts and no upper limit on savings.
National Savings Time Deposit (TD) Scheme - Introduction
National Savings Time Deposit (TD) scheme is operated by the Department of Posts under the Ministry of Communications. It provides Indians with a safe platform to invest money for specific tenures. This scheme offers competitive annual interest rates ranging from 6.9% to 7.5% depending on the chosen term.
You can start your investment with a minimum deposit of ₹1,000, with further contributions allowed in multiples of ₹100. There is no maximum limit on the total amount you can invest in this scheme. Interest rates for small savings schemes are reviewed by the government every quarter, and for the financial year 2026-27 the TD rates have been kept unchanged.
Key Information
| Scheme Name | National Savings Time Deposit (TD) |
|---|---|
| Level | Central |
| Scheme For | Individual |
| Beneficiary States | All |
| Category | Banking, Financial Services and Insurance |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Ministry | Ministry of Communications |
| Tags | Savings Account, Banking, Money, Time Deposit |
Benefits
The scheme offers four account types based on tenure: 1-year, 2-year, 3-year, and 5-year. Interest is compounded quarterly and paid annually. The 5-year TD account qualifies for tax deductions under Section 80C of the Income Tax Act, 1961.
- Interest Rates (Effective 01.04.2026 to 30.06.2026):
- 1-year TD: 6.9%
- 2-year TD: 7.0%
- 3-year TD: 7.1%
- 5-year TD: 7.5%
Additional Investment Details:
- Minimum investment is ₹1,000, with extra deposits in multiples of ₹100.
- There is no upper limit for the investment amount.
- Interest earned does not accrue additional interest if left in the account.
- You may request that annual interest be credited directly to your Post Office Savings Account or a linked bank account via written mandate.
Eligibility
The following individuals are eligible to open a TD account:
- Any resident citizen of India.
- A single adult.
- A guardian acting on behalf of a minor or a person of unsound mind.
- A minor who has attained the age of 10 years may open and operate their own account.
- Joint accounts can be opened by up to three adults under either 'Joint A' (operated by all) or 'Joint B' (operated by any) status.
Important Notes:
- You may open any number of individual or joint accounts.
- Upon turning 18, account holders must submit a new account opening form and fresh KYC documents to convert a minor account into an adult account.
- Accounts can be managed via Post Office e-Banking or mobile banking for existing savings account holders. Visit Post Office e-Banking for details.
Application Process
Offline Application
STEP 1 - Visit your nearest Post Office to obtain the Account Opening Form and KYC Form.
STEP 2 - Complete the forms accurately and attach the required identification and address documents.
STEP 3 - Submit the signed forms along with your documents at the counter.
STEP 4 - Deposit your initial amount (minimum ₹1,000) via cheque or cash.
STEP 5 - Once the Post Office verifies your details, they will confirm the account opening and issue your passbook.
Documents
You will need the following documents for the application:
- Completed and signed account opening form.
- Identity proof (Aadhaar card, PAN card, Voter ID, or Passport).
- Address proof (Aadhaar card, utility bill, or bank statement).
- Recent passport-size photographs.
References
Official India Post Savings Schemes
FAQ's
What is the National Savings Time Deposit (TD) Scheme?
It is a government-backed savings scheme managed by the Department of Posts that provides fixed-term deposits with guaranteed interest rates.
What interest rates does the scheme offer?
The annual interest rates range from 6.9% to 7.5%, varying based on the tenure of the deposit. These rates remain unchanged for the financial year 2026-27.
What are the available account tenures?
You can open a 1-year, 2-year, 3-year, or 5-year TD account.
Can a minor open an account?
Yes, children aged 10 years or older can open and operate an account in their own name.
What is the minimum investment required?
The minimum deposit is ₹1,000, and subsequent deposits must be in multiples of ₹100.
Is there a maximum limit for investment?
No, there is no maximum limit for investments in this scheme.
Do I get tax benefits?
Yes, investments made in a 5-year TD account qualify for tax deductions under Section 80C of the Income Tax Act.
Can I have interest credited to my bank account?
Yes, you can provide a standing instruction or ECS mandate to have the annual interest credited directly to your Post Office or bank savings account.