Post Office FD calculator
| Year | Opening Balance | Interest Earned | Closing Balance |
|---|
What This Tool Does
This calculator estimates the maturity value of a Post Office Fixed Deposit (also called a Post Office Time Deposit) — a government-backed lump-sum investment scheme. Enter your deposit amount, interest rate, and tenure to see your total returns.
You can also use this Period Calculator.
How It’s Calculated
Post Office FD interest compounds quarterly but is credited to your account annually:
Maturity Value = Principal × (1 + Rate ÷ 4)^(Years × 4)
As of the July–September 2026 quarter, current rates are:
| Tenure | Rate (p.a.) |
|---|---|
| 1 year | 6.90% |
| 2 years | 7.00% |
| 3 years | 7.10% |
| 5 years (tax-saving) | 7.50% |
These are reviewed by the government every quarter and can change, so confirm the current rate before relying on a projection.
Worked example: ₹75,000 deposited for 3 years at 7.10%.
- Quarterly rate: 7.10 ÷ 4 = 1.775%
- Number of quarters: 3 × 4 = 12
- Maturity value: 75,000 × (1.01775)^12 ≈ ₹92,630
- Estimated interest earned: approximately ₹17,630
Edge Cases and Special Rules
- No senior citizen premium: Unlike most bank FDs, Post Office Time Deposits pay the same rate to everyone regardless of age.
- Minimum deposit: ₹1,000, in multiples of ₹100, with no upper limit — and you can open multiple accounts.
- Premature withdrawal: Not allowed before 6 months. After that, closing early typically means earning a lower rate for the period held, with specific penalty terms depending on tenure — check current rules before withdrawing early.
- Interest is annual, not monthly: This scheme pays interest once a year, even though it compounds quarterly internally. If you want a monthly payout instead, that’s a separate India Post product — the Monthly Income Scheme (MIS) — not this Time Deposit account.
- Tax treatment: Interest earned is taxable per your income slab. Post Office FDs have historically not had TDS deducted at source the way bank FDs do, but confirm current rules, since this can change.
Post Office FD vs. Bank FD
Both work on similar compounding logic, but they’re offered by different institutions with different rules. Post Office FD rates are set by the government and reviewed quarterly, uniformly for all depositors. Bank FD rates vary by bank and often include a senior citizen premium (commonly 0.25%–0.75% higher) that Post Office FDs don’t offer. Depending on the tenure and bank, Post Office rates are sometimes competitive with or higher than standard bank FD rates — it’s worth comparing both before committing.
Who Uses This
- Conservative investors wanting a government-backed, guaranteed-return investment
- Anyone comparing Post Office FD returns against bank fixed deposits
- Investors seeking a 5-year tax-saving option under Section 80C
- Depositors planning ahead to project returns before committing a lump sum
Post Office FD vs. Post Office RD
These are easy to mix up since both are India Post savings products. A Fixed Deposit (FD) is a one-time lump-sum deposit that stays untouched for a fixed tenure. A Recurring Deposit (RD) involves smaller monthly deposits building up over time instead. Both compound quarterly, but the calculation method differs since an RD has to account for many separate deposits at different points in time, while an FD only has one.
FAQ
Is a Post Office FD calculator the same as a regular FD calculator?
The compounding logic is similar, but Post Office FD rates, rules, and tenures are specific to India Post and differ from individual bank FD terms.
What are the current Post Office FD interest rates?
As of the July–September 2026 quarter: 6.90% (1yr), 7.00% (2yr), 7.10% (3yr), and 7.50% (5yr).
Can I withdraw my Post Office FD early?
Not before 6 months; after that, early withdrawal is allowed but typically at a reduced interest rate.
Do senior citizens get a higher rate?
No — Post Office FDs pay the same rate to all depositors regardless of age, unlike most bank FDs.
What’s the minimum deposit amount?
₹1,000, in multiples of ₹100, with no maximum limit.
Try It Above
Enter your deposit amount, the current interest rate, and your chosen tenure in the calculator above to get an instant maturity estimate. Figures are approximate — confirm the exact current rate and terms with India Post before opening an account.