# Post Office Time Deposit Returns for One Lakh Rupee Investment Calculate potential maturity earnings across one, two, three, and five-year deposit tenures. - **Source:** [mint - money](https://www.livemint.com/rss/money) - **Published:** 2026-11-11 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/cf3e9c00-0470-41da-bdc3-47855c662eca ## Fixed Income Alternative The post office time deposit scheme serves as a government-backed alternative to traditional bank fixed deposits. It is designed for risk-averse investors who prefer stable returns over the volatility associated with equity markets. The scheme requires a one-time deposit, with both principal and accumulated interest paid out upon reaching maturity. ## Tiered Interest Rate Structure Interest rates for the scheme are tiered based on the chosen investment duration. Currently, the annual rates are 6.9% for one year, 7% for two years, 7.1% for three years, and 7.5% for five years. The five-year tenure provides the highest yield, making it the most attractive option for long-term savers. ## One-Year Maturity Returns For an initial investment of ₹1 lakh, a one-year deposit at a 6.9% interest rate generates approximately ₹7,081 in earnings. Upon maturity, the investor receives a total corpus of ₹1,07,081. This short-term option is suitable for individuals looking to park surplus funds while maintaining liquidity for near-term financial obligations or goals. ## Two and Three-Year Earnings A two-year deposit at 7% interest yields roughly ₹14,888, resulting in a total maturity amount of ₹1,14,888. Extending the commitment to three years at 7.1% interest increases the total interest earned to approximately ₹23,508. These mid-term tenures offer a balance between competitive returns and the flexibility to access capital sooner than five years. ## Five-Year Investment Potential The five-year deposit option offers the highest return at 7.5% interest, generating approximately ₹44,995 in total interest. This brings the final maturity value to ₹1,44,995. Beyond the interest gains, this specific tenure is notable for potential tax benefits under Section 80C of the Income-tax Act, provided the investor follows the old tax regime. ## Taxation and Compliance Rules While the five-year deposit allows for tax deductions up to ₹1.5 lakh under Section 80C, the interest earned is not entirely tax-free. Investors must report the interest income according to applicable tax laws. It is essential to note that these tax benefits are generally unavailable if the investor opts for the new tax regime. ## Maturity Extension Procedures Depositors can extend their accounts post-maturity by submitting a request within specific timeframes. One-year deposits require an extension request within six months, while two-year deposits allow up to twelve months. For three and five-year tenures, the deadline is eighteen months. The interest rate applicable during the extension is the rate prevailing at maturity. ## Strategic Investment Considerations Choosing the right tenure depends on individual financial needs and liquidity requirements. While the five-year option maximizes returns and offers tax advantages, shorter tenures provide faster access to funds. Investors should evaluate their specific goals and tax status before committing capital to ensure the chosen scheme aligns with their broader financial planning objectives. ## Sources covering this story - https://www.livemint.com/money/personal-finance/post-office-time-deposit-scheme-how-much-interest-can-you-earn-on-a-1l-investment-across-1-2-3-and-5-year-tenures-11794418578977.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._