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Post Office TD: 3 vs 5 Years? How Much More Return on 1 Million Investment
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News18•29-09-2026, 09:20
Post Office TD: 3 vs 5 Years? How Much More Return on 1 Million Investment
- •Post Office Time Deposit (TD) is a popular investment option, with the investment period influencing returns.
- •For the July-September quarter, 3-year TDs offer 7.1% interest, while 5-year TDs offer 7.5%.
- •Investing 1 million rupees for 5 years can yield over 300,000 rupees in interest, compared to over 100,000 rupees for 3 years.
- •The 5-year Post Office TD provides the additional benefit of tax savings along with higher interest.
- •There is a 162,000 rupee difference in returns between 3-year and 5-year TDs, requiring an additional 2 years of deposit for the latter.
Key Questions Answered
For the July-September quarter, the government has set an interest rate of 7.1 percent for 3-year Post Office TDs and 7.5 percent for 5-year TDs.
Investing 1 million rupees in a 5-year TD yields approximately 375,000 rupees in total interest at maturity, while a 3-year TD yields around 213,000 rupees in interest, creating a difference of 162,000 rupees.
Along with offering a higher interest rate of 7.5 percent, a 5-year Post Office Time Deposit also provides the additional benefit of tax savings for investors.
