Post Office FD Calculator
Estimate what a Post Office Time Deposit (Post Office FD) will be worth at maturity, for any of its four fixed tenures.
Government-notified, revised quarterly — pre-filled with the current rate for the selected tenure.
Maturity value
₹1,44,995
Interest earned: ₹44,995
Effective annualized yield
9.00%
Post Office FD tips
- Compare the 5-year rate against a tax-saver bank FD — both offer a Section 80C deduction, so the higher rate wins.
- If your goal doesn't match 1, 2, 3 or 5 years exactly, a bank FD lets you pick any custom tenure.
- Check the current rate for your chosen tenure before depositing — rates are revised quarterly.
How it's calculated
A Post Office Time Deposit works exactly like a bank FD — interest compounds quarterly and is paid out at maturity — but is only offered in four fixed tenures (1, 2, 3 and 5 years), each with its own government-notified rate.
Maturity value = Deposit × (1 + rate/4)^(4 × tenure in years)
Example
A ₹1,00,000 deposit at 7.5% for 5 years, compounded quarterly, grows to roughly ₹1,44,995 — about ₹44,995 in interest.
About Post Office Time Deposits
Post Office Time Deposits (often called "Post Office FDs") are a government-backed alternative to a bank fixed deposit, offered through India Post. They suit savers who want a sovereign guarantee rather than relying on DICGC's bank-deposit insurance limit.
How it works
You deposit a lump sum for a fixed tenure of 1, 2, 3 or 5 years. Interest is calculated quarterly (like most bank FDs) but paid out annually, and the full deposit plus interest is returned at maturity — the same cumulative FD mechanics used across the site.
How to use it
- Set your deposit amount.
- Pick a tenure — 1, 2, 3 or 5 years are the only options India Post offers.
- The rate updates automatically to that tenure's current government-notified figure; adjust it manually to model a rate change.
Strategies
Compare the 5-year tenure's rate against the shorter ones — the 5-year Post Office TD also qualifies for a Section 80C tax deduction, similar to a tax-saver bank FD, which the 1/2/3-year tenures don't. If your goal doesn't line up with exactly one of the four tenures, our bank FD calculator supports any custom tenure.
Important caveats
- Interest is fully taxable at your income slab rate, same as a bank FD — the maturity value shown is pre-tax.
- Breaking a Post Office TD before maturity is allowed after 6 months but reduces the effective rate — this calculator assumes it runs the full chosen tenure.
- Rates are revised quarterly by the government; the rate you lock in today may differ from what's shown here by the time you actually deposit.
Why it works
A Post Office TD uses the identical quarterly-compounding formula as a cumulative bank FD — only the issuer and the fixed tenure options differ, so the same maturity-value maths applies directly.
Benefits
- Sovereign (government) guarantee, generally considered very safe.
- The 5-year tenure qualifies for a Section 80C tax deduction on the deposit.
- Simple, fixed set of tenures makes comparing rates across 1/2/3/5 years straightforward.
Frequently asked questions
How is a Post Office Time Deposit different from a bank FD?
The underlying maths is identical — both compound quarterly and pay out at maturity. The differences are the issuer (India Post/government vs. a bank) and that Post Office TDs come in exactly four fixed tenures (1, 2, 3 and 5 years) rather than a bank's wide range of custom tenures.
Is a Post Office Time Deposit safe?
Yes — it carries a sovereign (government) guarantee, which is generally considered at least as safe as, if not safer than, the DICGC insurance limit that covers bank deposits.
Does the interest rate change if I pick a different tenure?
Yes. Each of the four tenures (1, 2, 3, 5 years) has its own government-notified rate — picking a different tenure on this calculator automatically updates the rate to that tenure's current figure, which you can still adjust manually.
Learn more from official sources
- India Post — Savings Schemes — official rate notifications for Post Office Time Deposits.
- National Savings Institute — Ministry of Finance body overseeing small savings schemes.
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