Post Office FD Calculator
This post office FD calculator works out the maturity value of a Post Office Time Deposit (POTD) — India Post's version of a fixed deposit — using the same quarterly-compounding convention as a bank FD. Enter your deposit amount, pick your tenure (1, 2, 3 or 5 years, the only durations India Post offers) and the current rate for that tenure, and see exactly what you'll receive at maturity.
The lump sum you are placing in the Post Office Time Deposit. India Post requires a minimum of ₹1,000, with no maximum limit.
Post Office Time Deposits only come in four fixed tenures — you can't choose any arbitrary duration the way you sometimes can with a bank FD.
The rate depends on which tenure you picked above — 1/2/3/5-year Post Office Time Deposit rates differ and are revised quarterly by the government, so check the current India Post rate card rather than relying on the default.
Maturity value
Log in to save₹1,44,995
What you'll receive in one lump sum when the Time Deposit matures — e.g. ₹1,00,000 at 7.5% for 5 years matures to about ₹1,44,995.
The pure gain on your deposit — remember this is taxable at your income slab rate in the year it's credited, same as a bank FD.
How to use this post office fd calculator
- 1Deposit amount: the lump sum you are placing today. India Post requires a minimum of ₹1,000 in multiples of ₹100, with no upper ceiling.
- 2Tenure: choose 1, 2, 3 or 5 years — unlike a bank FD, a Post Office Time Deposit doesn't come in odd durations like 45 days or 18 months, only these four fixed terms.
- 3Interest rate: use the rate for the specific tenure you selected — 1/2/3-year rates and the 5-year rate are set separately and revised every quarter by the government, so check India Post's current rate card rather than assuming last quarter's number still applies.
- 4Compare the maturity value here against our regular FD calculator for the same amount and tenure at your bank's rate — Post Office and bank FD rates move independently and one is often meaningfully better than the other at any given time.
Understanding your results
The maturity value is what you receive on the Time Deposit's maturity date, in one lump sum. Interest earned is the pure gain — it's taxable in the year it's credited, at your income slab rate, exactly like bank FD interest, and TDS rules apply the same way. Unlike a bank FD, though, a Post Office Time Deposit carries a sovereign guarantee from the Government of India rather than the ₹5 lakh DICGC deposit insurance that covers bank FDs — a meaningfully different risk profile if you're depositing amounts well above that ₹5 lakh threshold.
The formula
A = P × (1 + r/4)^(4×t)A is the maturity value, P the deposit amount, r the annual interest rate as a decimal, and t the tenure in years. Like bank FDs, Post Office Time Deposits compound quarterly by convention — the rate is divided by 4 and the exponent multiplied by 4, so each quarter's interest is added to the balance before the next quarter's interest is calculated on the larger amount. This calculator reuses the exact same formula as our bank FD calculator; the only real difference between the two products is the rate card, the tenure options, and who's backing the money.
A worked example
₹1,00,000 deposited in a 5-year Post Office Time Deposit at 7.5%, compounded quarterly: A = 1,00,000 × (1 + 0.075/4)^(4×5) = 1,00,000 × (1.01875)^20 ≈ ₹1,44,995 — interest of about ₹44,995 on the original deposit. Because this is the 5-year tenure, the deposit also qualifies for a Section 80C deduction on the principal (up to the overall 80C limit) in the year it's made — the 1, 2 and 3-year Time Deposits do not carry this tax benefit.
Things to know
The 5-year Post Office Time Deposit is the only one of the four tenures that qualifies for a Section 80C deduction, which is why it's usually the most-searched and typically carries the highest rate of the four. All four tenures are backed by the Government of India directly — a sovereign guarantee, not deposit insurance — which is a different (and for many savers, more reassuring) risk profile than a bank FD's ₹5 lakh DICGC cover. Premature withdrawal rules are also stricter than most bank FDs: withdrawal is generally not permitted before 6 months, and only the 5-year Time Deposit can be closed early after 4 years, at a reduced rate closer to the 3-year rate. These rules can change, so always confirm the current withdrawal terms at your post office or on the India Post website before depositing.
Frequently asked questions
How is Post Office FD (Time Deposit) interest calculated?+
Using the same quarterly-compounding formula as a bank FD, A = P(1 + r/4)^(4t): principal times (1 + quarterly rate) to the power of total quarters. ₹1,00,000 at 7.5% for 5 years matures at about ₹1,44,995.
Which Post Office Time Deposit tenure gets a tax deduction?+
Only the 5-year Time Deposit qualifies for a Section 80C deduction on the deposited principal. The 1-year, 2-year and 3-year Time Deposits do not carry this benefit, even though all four use the same quarterly-compounding maturity formula.
Is a Post Office FD safer than a bank FD?+
They're both very low-risk, but the backing differs: a Post Office Time Deposit carries a direct sovereign guarantee from the Government of India, while a bank FD is covered by DICGC deposit insurance only up to ₹5 lakh per depositor per bank. For amounts above ₹5 lakh, that difference becomes more meaningful.
Can I withdraw a Post Office Time Deposit before maturity?+
Generally not before 6 months. After that, rules are stricter than most bank FDs — only the 5-year Time Deposit allows closure after 4 years, at a lower rate than originally quoted. Always confirm the current premature-withdrawal rules at your post office, since these have changed over time.
Post Office FD or bank FD — which pays more?+
It varies by tenure and changes quarterly for both, so there's no fixed answer — compare the current India Post Time Deposit rate card against your bank's FD rates for the same tenure using this calculator and our regular FD calculator side by side.
Related calculators
Related articles
Fixed Rate CD Calculator: How to Know What Your Savings Will Actually Pay
Savings & Deposits
PERA Retirement Calculator: How to Map Out Your Personal Equity Retirement Account
Retirement
Pension Drawdown Calculator Aviva: How to Plan Your Retirement Income
Retirement
Calculate My Retirement Date: How to Find Your Real Freedom Number
Retirement