Post Office FD Interest Rate Calculator
Himanshu Grewal
Founder • Calculator Tool Developer
Builds fast, accurate, and user-friendly online calculators for finance, education, and everyday use.
View full profile →A powerful tool designed to calculate your Indian Post Office Fixed Deposit maturity amount, total interest earned, and growth over time. Get accurate results with the latest India Post rates.
Investment Details
Minimum deposit: ₹1,000 | No maximum limit
Auto-filled based on official Post Office FD rates
Your Results
Maturity Value
On 06 Jan 2030
Maturity Date
06 Jan 2030
Investment Breakdown
Principal Amount
₹1,00,000
Total Interest
₹44,995
Total Value at Maturity
₹1,44,995
Interest/Year (Avg)
₹8,999
Compounding
Quarterly
Year-wise Growth
| Year | Opening Balance | Interest Earned | Closing Balance |
|---|
Growth Projection
Principal
₹1,00,000
Final Value
₹1,44,995
Table of Contents
- What is a Post Office FD Interest Rate Calculator?
- Current Post Office FD Interest Rates 2026
- How to Use the Post Office FD Calculator
- How the Calculator Works
- Post Office FD Interest Calculation Formula
- Example: ₹1 Lakh FD Interest in Post Office
- Estimated Returns for ₹50,000 to ₹5 Lakh
- Does Post Office FD Pay Monthly Interest?
- Factors That Affect Your FD Returns
- Key Benefits of Post Office Time Deposit
- Post Office FD vs Bank FD
- Tax Benefits & Premature Withdrawal Rules
- Who Should Use This Calculator?
- Important Things to Know Before Investing
- Frequently Asked Questions
This calculator uses the official Post Office Time Deposit (TD) interest calculation method notified by the Ministry of Finance. Interest rates for Post Office Small Savings Schemes are reviewed every quarter and may change for new deposits. The calculator applies the latest available rates configured on this page. Please verify the current applicable interest rate with India Post before making any investment decision.
What is a Post Office FD Interest Rate Calculator?
A Post Office FD Interest Rate Calculator is a free online tool that instantly tells you the maturity amount and total interest you will earn on a Post Office Time Deposit. Enter your deposit amount and tenure, and it applies the correct quarterly compounding formula for you.
This tool is useful for anyone comparing savings options — first-time investors, retirees looking for safe returns, or anyone deciding between a 1-year and a 5-year lock-in. It works as a Post Office Time Deposit Calculator, an India Post FD Calculator, and a Post Office Fixed Deposit Calculator — all under one name, since India Post officially calls this scheme a "Time Deposit" (TD) rather than an FD.
Instead of manually working out quarterly compounding, you get an accurate estimate in seconds, based on the postal fixed deposit interest rate currently notified by the Ministry of Finance.
Current Post Office FD Interest Rates 2026
The current Post Office FD interest rate ranges from 6.9% to 7.5% per annum, depending on the tenure you choose. Interest rates on Post Office Time Deposits (also known as India Post Fixed Deposits) are notified every quarter by the Ministry of Finance.
| Tenure | Interest Rate (p.a.) |
|---|---|
| Post Office 1 Year FD Interest Rate | 6.9% |
| 2 Year Time Deposit | 7.0% |
| 3 Year Time Deposit | 7.1% |
| Post Office 5 Year FD Interest Rate (Tax Saving) | 7.5% |
Important: The interest rates used in this calculator are based on the latest notifications issued by the Ministry of Finance for Post Office Small Savings Schemes. These rates are reviewed every quarter and may change for new deposits. Before investing, always verify the current applicable rate from the official India Post website or your nearest Post Office.
How to Use the Post Office FD Interest Rate Calculator
This calculator gives you an instant estimate in three simple steps:
Enter Deposit Amount
Type the principal you want to invest (minimum ₹1,000, no maximum limit).
Select Tenure
Choose 1, 2, 3, or 5 years. The correct official interest rate is applied automatically.
View Maturity Value
Instantly see your estimated maturity amount and total interest earned.
How the Calculator Works
The calculator applies the official Post Office Time Deposit rule: interest is compounded quarterly but credited to your account annually, or paid out at maturity for deposits under one year.
Once you enter your deposit amount and tenure, it runs the compound interest formula behind the scenes using the current official rate, and shows your projected maturity value and total interest profit.
✔ Takes Your Inputs
Deposit amount and selected tenure (1, 2, 3, or 5 years).
✔ Applies Official Rate
Uses the current Ministry of Finance notified rate for that tenure.
✔ Calculates Maturity
Shows estimated maturity value and total interest earned.
Post Office FD Interest Calculation Formula
Post Office Time Deposits use the standard compound interest formula, applied quarterly:
Compound Interest Formula (Quarterly Compounding)
A = P [1 + (r / 400)]4n
Note: Although the math compounds quarterly, the interest is officially paid out annually or at maturity — not every quarter. This calculator follows that same official Post Office Time Deposit interest calculation method.
Example: ₹1 Lakh FD Interest in Post Office
A common question is: "What is the interest of ₹1 lakh FD in post office?" Here is the exact calculation using the current 5-year rate of 7.5%.
Figures are estimates based on the compound interest formula above and may vary slightly from actual Post Office calculations due to rounding rules.
Estimated Returns for ₹50,000, ₹1 Lakh, ₹2 Lakh & ₹5 Lakh Deposits
Use this table to quickly estimate your post office fixed deposit calculator returns for common deposit amounts across all four tenures.
| Deposit | 1 Yr (6.9%) | 2 Yr (7.0%) | 3 Yr (7.1%) | 5 Yr (7.5%) |
|---|---|---|---|---|
| ₹50,000 | ₹53,540 | ₹57,445 | ₹61,755 | ₹72,498 |
| ₹1,00,000 | ₹1,07,081 | ₹1,14,889 | ₹1,23,511 | ₹1,44,995 |
| ₹2,00,000 | ₹2,14,161 | ₹2,29,778 | ₹2,47,022 | ₹2,89,990 |
| ₹5,00,000 | ₹5,35,403 | ₹5,74,446 | ₹6,17,554 | ₹7,24,975 |
Values shown are maturity amounts (principal + interest), rounded to the nearest rupee. Use the calculator above for an exact figure based on your specific deposit amount.
Does the Post Office FD Pay Monthly Interest?
No. A Post Office Time Deposit (FD) does not pay monthly interest.
Interest on a Post Office Time Deposit is compounded quarterly but is credited annually to your linked Post Office Savings Account (or paid at maturity for deposits with a tenure of less than one year). Therefore, a standard Post Office FD does not provide a monthly income.
Looking for Monthly Income Instead?
If your goal is to receive a fixed monthly income, consider the Post Office Monthly Income Scheme (POMIS) instead of a Time Deposit. POMIS currently offers an interest rate of 7.4% per annum, payable every month.
- Interest Rate: 7.4% per annum (paid monthly)
- Lock-in Period: 5 years
- Maximum Investment: ₹9 lakh (Single Account)
- Maximum Investment: ₹15 lakh (Joint Account)
Note: POMIS and the Post Office Time Deposit (FD) are separate government-backed savings schemes with different features, eligibility criteria, and interest payment methods. Interest rates for both schemes are reviewed periodically by the Ministry of Finance.
Factors That Affect Your Post Office FD Returns
Four things determine your final maturity amount:
Deposit Amount
A higher principal earns proportionally higher interest.
Tenure Selected
Longer tenures (up to 5 years) currently earn a higher rate.
Applicable Interest Rate
Locked in at the rate on your deposit date, even if rates change later.
Quarterly Compounding
Interest is calculated every quarter, slightly boosting effective returns.
Key Benefits of Post Office Time Deposit
Government-Backed Security
A sovereign guarantee protects your entire principal and interest, with no upper limit.
Guaranteed, Fixed Returns
Your rate is locked in on the deposit date and does not change during the tenure.
Flexible Tenure
Choose 1, 2, 3, or 5 years based on your financial goal.
No TDS on Interest
Unlike bank FDs, Post Office Time Deposit interest is not subject to TDS deduction.
Post Office FD vs Bank FD
Both are safe, but they differ in guarantee level, insurance limits, and rate stability. Here's a quick comparison:
| Feature | Post Office FD | Bank FD |
|---|---|---|
| Safety | 100% sovereign guarantee, no limit | DICGC insured up to ₹5 lakh only |
| Highest Rate | 7.5% (5-year) | Varies by bank, typically 6.5%–7.5% |
| TDS | Not applicable | Deducted if interest exceeds threshold |
| Section 80C | Yes, on 5-year tenure | Yes, on 5-year tax-saving FD |
| Rate Revision | Reviewed quarterly by Ministry of Finance | Set independently by each bank |
| Senior Citizen Extra Rate | No | Usually Yes |
Actual bank FD rates vary across banks and customer categories (general/senior citizen).
Tax Benefits & Premature Withdrawal Rules
Section 80C Deduction
Only the 5-year Post Office Time Deposit qualifies for a deduction up to ₹1.5 lakh under Section 80C. The 1, 2, and 3-year tenures do not offer this benefit.
Interest is Taxable
Interest earned is added to your annual income and taxed per your slab rate. However, no TDS is deducted on Post Office Time Deposit interest.
6-Month Lock-in
You cannot withdraw or close the account before 6 months from the date of deposit.
Early Exit Penalty
Closing a 1-year account after 6 months gives you only the Post Office Savings Account rate (4%). For 2, 3, or 5-year accounts closed after 1 year, you get 2% less than the applicable FD rate.
Who Should Use This Calculator?
This calculator is ideal for anyone planning to invest in a Post Office Time Deposit (FD).
It is especially useful if you want a safe, government-backed savings option with guaranteed returns, are saving for a short-term or medium-term financial goal (1–5 years), want to estimate the maturity value before investing, claim tax benefits under Section 80C through a 5-year Time Deposit, or compare a Post Office FD with a bank FD.
If you are looking for a regular monthly income, the Post Office Monthly Income Scheme (POMIS) may be a better choice. Investors seeking market-linked returns may also consider other investment options, as this calculator is designed specifically for Post Office Time Deposits.
Important Things to Know Before Investing
- Interest rates are notified quarterly by the Ministry of Finance and can change for new deposits — your rate is locked in only on the day you invest.
- This calculator provides an estimate for planning purposes; it is not investment advice.
- Always verify the current official rate on the official India Post website or at your nearest Post Office before depositing.
- A minimum 6-month lock-in applies to all tenures, with reduced interest on early closure.
Frequently Asked Questions
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