How to Use the Post Office FD Calculator
Our post office fd calculator lets you quickly calculate your exact interest payouts and total maturity returns for India Post Time Deposits. Here is how to use it:
- Enter Investment Amount: Input your lump-sum deposit amount (minimum ₹1,000, in multiples of ₹100).
- Select Tenure: Choose between 1 Year, 2 Years, 3 Years, or 5 Years.
- Instant Output: The interest rate automatically updates, displaying your annual interest payout, cumulative interest, and final maturity value.
Post Office Fixed Deposit Interest Calculation & Formula
A Post Office Fixed Deposit (also known as Post Office Time Deposit or POTD) calculates interest using quarterly compounding. However, India Post credits the interest payout annually directly into your linked savings account.
Formula used by the post office fixed deposit calculator:
A = P × ( 1 + r ÷ 400 )4 × n
- A = Total Maturity Value (Principal + Cumulative Interest)
- P = Principal Lump-Sum Investment Amount
- r = Annual Interest Rate (%)
- n = Tenure in Years
Example Calculation (₹1,00,000 for 5 Years at 7.5% p.a.)
- Principal Investment: ₹1,00,000
- Tenure: 5 Years
- Annual Interest Rate: 7.5% p.a. (Compounded Quarterly)
- Annual Interest Payout: ₹7,714 / year
- Total Interest Earned (5 Years): ₹7,714 × 5 = ₹38,569
- Total Maturity Value: ₹1,00,000 + ₹38,569 = ₹1,38,569
Post Office FD Interest Rates & Returns Table (All Tenures)
Below is a quick reference table showing the annual interest payout and final maturity value across different deposit amounts and tenures at current government interest rates:
| Deposit Amount (₹) |
Tenure |
Interest Rate (p.a.) |
Annual Interest Payout (₹) |
Total Maturity Value (₹) |
| ₹50,000 |
1 Year |
6.9% |
₹3,540 |
₹53,540 |
| ₹1,00,000 |
1 Year |
6.9% |
₹7,081 |
₹1,07,081 |
| ₹1,00,000 |
2 Years |
7.0% |
₹7,186 / year |
₹1,14,372 |
| ₹1,00,000 |
3 Years |
7.1% |
₹7,291 / year |
₹1,21,874 |
| ₹1,00,000 |
5 Years (80C Tax-Saving) |
7.5% |
₹7,714 / year |
₹1,38,569 |
| ₹5,00,000 |
5 Years (80C Tax-Saving) |
7.5% |
₹38,569 / year |
₹6,92,845 |
| ₹10,00,000 |
5 Years (80C Tax-Saving) |
7.5% |
₹77,138 / year |
₹13,85,690 |
Section 80C Tax Benefits & TDS Rules
Section 80C Tax Saving
Investment in a 5-Year Post Office Time Deposit is eligible for tax deduction under Section 80C of the Income Tax Act up to ₹1,50,000 per financial year. 1, 2, and 3-year FDs do not qualify for 80C benefits.
TDS & Taxation on Interest
Interest earned on Post Office FD is added to your total income and taxed according to your tax bracket. If annual interest across post office deposits exceeds ₹40,000 (₹50,000 for senior citizens), TDS applies. You can submit Form 15G / 15H to avoid TDS if your income is below the taxable limit.
Premature Closure & Penalty Rules
If you need emergency liquidity before maturity, India Post allows premature withdrawal under specific conditions:
- First 6 Months: No premature closure is allowed under any circumstances.
- Between 6 Months & 1 Year: The account can be closed, but interest will be paid at the basic Post Office Savings Account rate (4.0% p.a.).
- After 1 Year (for 2, 3, or 5-year FDs): The interest rate will be reduced by 2% from the applicable FD rate for completed years, and the savings account rate (4%) will apply for remaining months.
Post Office FD vs Other Savings Instruments
| Scheme |
Interest Rate (p.a.) |
Payout Frequency |
Tenure |
Sec 80C Benefit |
| Post Office FD (5-Yr) |
7.5% |
Annual Payout |
5 Years |
Yes |
| Post Office RD |
6.7% |
At Maturity |
5 Years |
No |
| Post Office MIS |
7.4% |
Monthly Payout |
5 Years |
No |
| Bank FD (Average) |
6.5% - 7.25% |
Monthly / Quarterly / Maturity |
7 Days to 10 Years |
Yes (5-yr Tax Saver) |
Why Use Our Post Office Time Deposit Calculator?
Our post office time deposit calculator provides clear, authentic, and instant calculation results:
- Automatic Rate Updates: Dynamically loads exact government rates (6.9%, 7.0%, 7.1%, 7.5%) based on your selected tenure.
- Quarterly Compounding Accuracy: Accurately computes quarterly compounding with annual interest payouts.
- 100% Free & No Sign-Up: Instant calculations without logins or intrusive ads.
Frequently Asked Questions (FAQs)
The interest rates for Post Office Time Deposits (FD) are: 6.9% p.a. for 1-year, 7.0% p.a. for 2-year, 7.1% p.a. for 3-year, and 7.5% p.a. for 5-year tenures.
Interest in a Post Office FD is calculated and compounded quarterly, but the interest payout is credited annually to the account holder's savings account.
Yes, but only the 5-Year Post Office Time Deposit (FD) qualifies for tax deduction under Section 80C of the Income Tax Act up to ₹1.5 Lakh per financial year. 1, 2, and 3-year FDs do not qualify for 80C benefits.
The minimum deposit required to open a Post Office FD is ₹1,000 (and in multiples of ₹100). There is no maximum limit on how much you can deposit.
Premature withdrawal is not allowed within the first 6 months. If closed between 6 months and 1 year, the Post Office Savings Account interest rate (4.0% p.a.) applies. If closed after 1 year, interest is paid at 2% less than the specified FD rate for completed years.
Yes, interest earned on Post Office FDs is taxable. TDS is deducted if total annual interest across post office deposits exceeds ₹40,000 for regular individuals or ₹50,000 for senior citizens. Submitting Form 15G or 15H can prevent TDS if your total income is below the taxable limit.
Yes, a Post Office Time Deposit account can be pledged or transferred as security to banks, housing finance companies, or government authorities by submitting an official application.
Yes, on maturity, you can extend your FD account for another term of the same duration. The extension will earn the interest rate applicable on the date of maturity.