Post Office 24-Month FD Scheme 2026: The Post Office 24-month Fixed Deposit scheme is once again in the spotlight after claims started circulating about a 9 percent guaranteed return. Because Post Office savings schemes are trusted and government-backed, many investors are eager to know whether this claim is true and whether a 2-year FD can really deliver such high returns in 2026.
Here is the complete and factual picture.
What the Post Office 24-Month FD Scheme Is
The 24-month Fixed Deposit scheme is a time deposit option offered by India Post under the Small Savings Schemes of the Government of India. Investors deposit a lump sum amount for two years, and the interest rate remains fixed for the entire tenure, offering safety and predictable returns.
Current Interest Rate Reality in 2026
As of 2026, the official interest rate for the Post Office 24-month FD is around 6.9 to 7.0 percent per annum, depending on the quarter in which the deposit is made. Interest is compounded quarterly but paid annually into the linked savings account.
There is no official Post Office FD scheme offering a flat 9 percent guaranteed return for a 24-month tenure. Any claim of 9 percent should be treated with caution unless announced formally by the government.
Where the “9% Return” Claim Comes From
The 9 percent figure often appears due to misunderstanding. In some cases, people calculate cumulative interest or combine multiple years of returns and present it as an annual rate. In other cases, outdated interest rates from older schemes or senior-citizen bank FDs are wrongly associated with Post Office deposits.
The Post Office strictly follows government-notified rates, which are uniform across India.
Deposit Amount and Eligibility
The scheme is open to all Indian residents. The minimum deposit amount is ₹1,000, and there is no maximum limit. Deposits must be made in multiples of ₹100. Both single and joint accounts are allowed, making it suitable for individuals, families, and senior citizens alike.
Maturity Period and Expected Returns
The maturity period is exactly 24 months from the date of deposit. At maturity, the investor receives the original principal along with the accumulated interest. For example, an investment of ₹1 lakh for two years at the prevailing rate can grow to approximately ₹1.15 lakh, depending on compounding rules.
Returns are guaranteed but moderate, reflecting the low-risk nature of the scheme.
Tax Treatment You Should Know
Interest earned from the Post Office 24-month FD is fully taxable as per the investor’s income tax slab. No TDS is deducted by the post office, so investors must declare the interest income while filing their tax returns. This FD does not qualify for Section 80C tax benefits.
Who Should Consider This FD Scheme
This scheme is best suited for conservative investors who want capital safety, guaranteed returns, and a short to medium-term investment horizon. It is particularly suitable for retirees, senior citizens, and those parking surplus funds without exposure to market risks.
Conclusion: The Post Office 24-month FD scheme remains a safe and dependable investment option in 2026, but claims of a 9 percent guaranteed return are misleading. The actual strength of this scheme lies in government backing, stability, and predictable income rather than high returns. Investors should rely only on officially notified interest rates and treat viral claims with caution.
Disclaimer: This article is for informational purposes only. Interest rates and scheme rules are subject to change based on government notifications. Investors should verify the latest rates at their nearest post office or through official announcements before investing.
