Post Office FD Calculator
Planning to invest in a Post Office Fixed Deposit and want to know your maturity amount? Use the Post Office FD Calculator to estimate your returns instantly – no registration required.
The calculator above automatically applies the latest quarterly-compounded interest rates for 2026, so you can compare 1‑year, 2‑year, 3‑year, and 5‑year tenures side by side. Enter your deposit amount, select the tenure, and the tool computes total interest earned and the final maturity value using the current quarter’s rates.
Post Office FD Interest Rates 2026
The Government of India revises Post Office time deposit rates every quarter. As of the January–March 2026 quarter (Q1 FY 2026‑27), the nominal annual rates and effective annual yields are:
| Tenure | Nominal Annual Rate | Effective Annual Yield (Quarterly Compounding) |
|---|---|---|
| 1 year | 7.20% | 7.40% |
| 2 years | 7.40% | 7.69% |
| 3 years | 7.50% | 7.71% |
| 5 years | 7.90% | 8.13% |
Interest is compounded every quarter, which lifts the effective yield above the nominal rate. The calculator uses these exact rates for accurate projections.
What Will Be the Maturity Amount on ₹1,00,000 for 5 Years?
For a deposit of ₹1,00,000 in a 5‑year Post Office FD at the 7.90% nominal rate, quarterly compounding produces:
- Maturity amount: ₹1,47,790
- Total interest earned: ₹47,790
This applies the formula below with a principal of ₹1,00,000, an annual rate of 7.90% divided by four compounding periods, and 20 total quarters.
How the Calculator Works: Quarterly Compounding Formula
The post office FD calculator is built on the standard compound interest formula:
A = P × (1 + r/n)^(n×t)
Where:
- A = maturity amount
- P = principal (deposit amount)
- r = nominal annual interest rate (decimal)
- n = number of compounding periods per year (4 for quarterly)
- t = tenure in years
For a 5‑year deposit at 7.90%:
(1 + 0.079/4)^(20) = (1.01975)^20 ≈ 1.4779
₹1,00,000 × 1.4779 = ₹1,47,790 (rounded)
Because the interest is compounded every quarter, the effective annual return is higher than the nominal 7.90% – it climbs to about 8.13%, as shown in the table above.
Key Features of Post Office Time Deposits
- Tenures available – only 1, 2, 3, and 5 years. No other durations.
- Minimum deposit – ₹1,000, and thereafter in multiples of ₹100. No upper limit.
- Account type – can be opened by an individual or jointly; nomination facility is available.
- Interest payout – compounded quarterly; credited annually or paid along with principal at maturity.
- Account transfer – a time deposit can be transferred from one post office to another across India.
- Safety – deposits carry the sovereign guarantee of the Government of India; zero default risk.
Tax Benefits and Taxability of Interest
- The 5‑year Post Office Time Deposit qualifies for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per financial year (along with other eligible investments).
- Interest earned on all tenures is fully taxable as per your income slab. The post office does not deduct TDS, but you must report the interest in your income tax return.
- Senior citizens can claim a deduction of up to ₹50,000 on interest from post office deposits (including time deposits) under Section 80TTB, reducing their taxable interest income.
Premature Withdrawal Rules and Penalty
- 1‑year FD – premature closure is not permitted within the first 6 months. Closure between 6 months and 1 year attracts interest at the Post Office Savings Account rate (currently 4%).
- 2‑, 3‑, and 5‑year FDs – can be closed before maturity only after completion of 1 year. The interest payable is the rate applicable for the completed tenure on the date of deposit, minus a 1% penalty.
- No partial withdrawals are allowed; the entire deposit must be closed prematurely.
Comparing Post Office FD with Bank Fixed Deposits
- Safety – Post Office FDs carry sovereign guarantee; bank FDs are insured by DICGC up to ₹5 lakh per depositor per bank.
- Tax benefit – only the 5‑year Post Office TD offers Section 80C deduction. Most bank tax‑saving FDs also qualify, but they have a 5‑year lock‑in too.
- Senior citizen rates – banks usually offer 0.25%–0.50% extra to senior citizens; Post Office TD does not.
- Tenure flexibility – bank FDs allow a wide range of tenures (7 days to 10 years); the post office offers only four fixed tenures.
- Auto‑renewal – bank FDs often auto‑renew; post office time deposits do not, so you must manually reinvest at maturity.
Disclaimer: This calculator is for illustration only. Interest rates are revised quarterly by the Government of India. Please check the latest rates on the India Post website before investing. The actual maturity amount may vary slightly due to rounding.