The 2-year Post Office Time Deposit offers a higher rate than the 1-year variant and is ideal for medium-short term goals. Like all Post Office deposits, it carries a sovereign guarantee — your money cannot be lost.
Interest is compounded quarterly and paid at maturity, so you receive the full benefit of compounding at the end of the term.
Who Should Invest?
- Anyone saving for a specific goal in 2 years (home renovation, vehicle purchase)
- People who want better returns than a savings account without locking up money for too long
- Conservative investors diversifying away from bank FDs
Key Features
- Higher rate than 1-year TD
- Quarterly compounding — maturity amount is higher than simple interest FDs
- Can be held at any post office and transferred between branches
- Can be pledged as security for loans
- Premature closure allowed after 6 months
Watch Out For
- No 80C tax deduction
- TDS applies above ₹40,000 interest per year
Compare All NSS Schemes
See how POTD 2Y compares to all other National Savings Schemes in one table.
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