Post Office FD Calculator

Minimum ₹200
6 months to 5 years
Current rate: 7.5% for 5 years

Government Backed

100% secure investment with sovereign guarantee

Competitive Rates

Higher returns compared to regular savings

Flexible Tenure

Choose between 6 months to 5 years

Post Office Fixed Deposit (FD)

Also Read: Latest Post Office FD Interest Rates

What is Post Office FD?

Post Office Fixed Deposit (POFD), also known as Post Office Time Deposit (POTD), is a savings scheme provided by the Indian Postal Service. It is a form of investment where an individual deposits a lump sum amount for a fixed tenure, and in return, they earn interest on their investment over the specified period. The key features of this scheme include:

  • Safety:
    • Backed by the Government of India.
    • Considered one of the safest investment options with minimal risk.
  • Interest Rates:
    • Usually higher than regular savings accounts.
    • Lower than other high-risk investment options.
    • The rates are revised periodically by the government.
  • Tenure Options: The fixed deposit can be made for various tenures, such as 1 year, 2 years, 3 years, or 5 years. The interest rate varies depending on the tenure of the deposit.
  • Interest Payment: The interest is paid at regular intervals, either quarterly or annually, or at maturity depending on the terms selected. For longer-term deposits (such as 5 years), you can also benefit from tax exemptions under Section 80C of the Income Tax Act.
  • Premature Withdrawal: While the FD can be withdrawn prematurely, this may attract a penalty and the interest earned may be lower.
  • Nomination Facility: The Post Office FD allows the nomination of a beneficiary in case of the investor’s demise.
  • Taxability: Interest earned on the FD is taxable, and TDS (Tax Deducted at Source) is applicable if the interest exceeds a certain threshold.
  • Accessibility: It is easily accessible to all Indian citizens and can be opened at any post office in the country.

Key Features of Post Office FD

  • Government-backed security
  • Minimum investment ₹200 (multiples of ₹200)
  • Quarterly compounded interest
  • Tenure options from 6 months to 5 years

How to Calculate FD Interest?

Calculate maturity amount using compound interest formula:

Maturity Value = Principal × (1 + Interest Rate/4)(n×4)

Where:
n = Number of years
Interest Rate = Annual rate (compounded quarterly)

Example Calculation

₹1,00,000 invested at 7.8% for 5 years:

Maturity Value = 1,00,000 × (1 + 0.078/4)(5×4) = ₹1,47,145

Post Office FD Investment Rules

  • No withdrawals allowed before 6 months
  • 1% penalty on premature withdrawals after 6 months
  • FD transferable between post offices
  • Auto-renewal option available at maturity

Benefits of FD Calculator

Instant Calculations

Get accurate maturity estimates in seconds

Financial Planning

Compare returns across different tenures

FAQs

Yes, interest income is taxable under Income Tax Act.

Allowed after 6 months with 1% penalty. Interest paid only for completed years.

Yes, the FD can be auto-renewed at maturity, or you can choose to withdraw the amount.

Yes, you can take a loan against your Post Office FD after some time. You need to request at the post office.

Yes, the FD can be transferred between different post offices in India. For more details, you can visit the official Indian Post website.