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Post Office FD Calculator (National Savings Time Deposit)

Calculate returns on Post Office National Savings Time Deposits (POTD). Compare the rates (calculated quarterly, paid annually) across 1, 2, 3, and 5-year terms with Section 80C tax savings.

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Calculator and results

Investing ₹1,00,000 in a 5-Year Post Office Time Deposit at 7.5% p.a. pays ₹7,714 interest a year, ₹38,568 in all, so deposit plus interest comes to ₹1,38,568, while qualifying for Section 80C tax deduction up to ₹1,50,000.

Post Office Time Deposit (POTD)

100% Sovereign Safety

Calculate returns on National Savings Time Deposits across 1, 2, 3, and 5-year fixed terms.

₹

Minimum ₹1,000 (in multiples of ₹100). No upper limit.

Select term to view the official rate:

Time Deposit Return Summary

Deposit plus interest

₹1,38,568

At 7.5% p.a. over 5 years

Total interest

₹38,568

₹7,714 a year: calculated quarterly, paid annually

Principal Deposited:₹1,00,000
Tenure Duration:5 Years (20 Quarters)
Interest Rate:7.5% p.a.
Total Interest Gain:₹38,568
Deposit plus interest:₹1,38,568
Section 80C Tax Deduction Eligible:

Your 5-Year Post Office Time Deposit qualifies for up to ₹1,50,000 deduction under Section 80C of the Income-tax Act.

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How does the Post Office FD Calculator work?

Post Office Time Deposits (POTD) are sovereign fixed deposits backed 100% by the Government of India, available in 1-year, 2-year, 3-year, and 5-year durations.

Current official interest rates: 1-Year at 6.90%, 2-Year at 7.00%, 3-Year at 7.10%, and 5-Year at 7.50% p.a.

Interest is compounded quarterly but paid annually into your savings account or reinvested.

Section 80C Benefit: Investment in the 5-Year Post Office Time Deposit qualifies for tax deduction up to ₹1,50,000 under Section 80C of the Income-tax Act.

Minimum deposit is ₹1,000 with no maximum investment ceiling.

Worked example: ₹1,00,000 in a 5-year Post Office Time Deposit at 7.5% earns about ₹7,714 of interest a year, ₹38,568 over the term, for a maturity amount of about ₹1,38,568. The same amount for 1 year at 6.9% earns about ₹7,081.

Interest on a Post Office FD is calculated quarterly but paid out once a year, not monthly. If you need a monthly income from a lumpsum, the Post Office Monthly Income Scheme is the scheme designed for that, and senior citizens can also compare the SCSS Calculator.

Only the 5-year term qualifies for the Section 80C deduction under the old tax regime. To compare against bank deposits, use the FD Calculator or see the highest FD rates across banks.

Interest on ₹1,00,000 in a Post Office Time Deposit

TermRateInterest a yearMaturity amount80C
1 year6.9%₹7,081₹1,07,081No
2 years7.0%₹7,186₹1,14,372No
3 years7.1%₹7,291₹1,21,874No
5 years7.5%₹7,714₹1,38,568Yes

Interest is calculated quarterly and paid once a year. Rates are revised every quarter; the rate on the day you invest applies for the whole term.

Post Office FD Calculator formula

Interest each year = Principal x ((1 + r/400)^4 - 1); total interest = that x Years

Principal
= Deposit amount (minimum ₹1,000, in multiples of ₹100)
r
= Annual rate, calculated quarterly and paid out yearly (6.90% to 7.50% p.a. depending on term)
Years
= Fixed tenure: 1, 2, 3, or 5 years

5-Year term deposit qualifies for Section 80C deduction up to ₹1.5 Lakh.

Post Office FD Calculator: worked example

₹1,00,000 in 5-Year Post Office Time Deposit (7.50% p.a.)

Fixed Deposit Principal
₹1,00,000
Tenure Selected
5 Years
Quarterly Compounded Sovereign Rate
7.5% p.a.
Total Interest Accrued
₹38,568
Total Payout at Maturity
₹1,38,568
Section 80C Tax Deduction Status
Eligible (Up to ₹1.5 Lakh)

Post Office FD Calculator: frequently asked questions

What are the latest Post Office Time Deposit interest rates in 2026?
The Ministry of Finance rates are: 1-Year TD: 6.90%, 2-Year TD: 7.00%, 3-Year TD: 7.10%, and 5-Year TD: 7.50% p.a., all calculated quarterly and paid annually.
Does Post Office FD qualify for Section 80C tax exemption?
Yes, but only the 5-Year Post Office Time Deposit qualifies for tax deduction under Section 80C up to ₹1.5 Lakh. 1-year, 2-year, and 3-year deposits do not qualify for 80C.
Is Post Office FD safer than bank fixed deposits?
Yes. Post Office deposits are backed by the sovereign guarantee of the Government of India with 100% safety on the full amount. Bank FDs are insured by DICGC up to ₹5 Lakh per depositor per bank.
How is interest paid on Post Office Time Deposit?
Interest is calculated on a quarterly compounding basis but is paid out annually to the depositor's linked Post Office Savings Account.
Can I break a Post Office Time Deposit before maturity?
Premature withdrawal is not allowed before 6 months. For closures between 6 and 12 months, post office savings account interest (4%) is paid. For closures after 1 year, interest is paid at 2% below the applicable TD rate.
Is TDS deducted on Post Office Time Deposit interest?
No TDS is deducted at the time of interest payment by the post office. Depositors must pay self-assessment tax as per their applicable tax bracket.
Does a Post Office FD pay monthly interest?
No. Post Office Time Deposit interest is calculated quarterly and paid once a year. For a monthly payout from a lumpsum, the Post Office Monthly Income Scheme (POMIS) is the matching scheme.
How much interest will ₹1 lakh earn in a Post Office FD?
About ₹7,714 a year in the 5-year deposit at 7.5%, or about ₹38,568 over five years, and about ₹7,081 in the 1-year deposit at 6.9%. Rates are revised quarterly, so check the current rate before you invest.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated