India Post's equivalent of a bank FD: 1, 2, 3 or 5-year tenures. Interest is paid annually (quarterly compounded). The 5-year POTD is the only one eligible for Section 80C deduction.
Maturity value
₹0
Tenure
5 yr
Applicable rate
7.5%
Total interest
₹0
80C eligible
Yes
Year
Opening
Interest
Closing
POTD vs bank FD
Government-backed (sovereign safety) vs DICGC ₹5L cover on bank FDs
Interest credited annually (banks: quarterly to your account)
Premature withdrawal allowed after 6 months (with penalty)
Annual interest is taxable; can claim 80TTB (seniors) for first ₹50k