Post Office Time Deposit (FD) calculator
Written and reviewed by Omm · Last reviewed · General information, not investment advice
A Post Office Time Deposit (TD), often called a Post Office FD, is a lump sum deposited for 1, 2, 3 or 5 years. Choose the term to see the interest.
Between 1000 and 10000000
Between 1 and 15
Interest every year
₹7,713.59
Total interest
₹38,568
Deposit returned at maturity
₹1,00,000
Rate used
- Period
- October–December 2026 (Q3 FY 2026-27)
- Notice
- F. No. 1/4/2019-NS, 30.09.2026
- Checked
- 12.10.2026
Sources: Office memorandum F. No. 1/4/2019-NS dated 30.09.2026 (republished by TaxGuru) · Indian Bank: interest rates for small savings schemes · Department of Economic Affairs, Budget Division
How the money is calculated
- Interest is calculated quarterly and paid out once a year; the payout does not compound.
- The rate depends on the term: 1 year 6.9%, 2 years 7%, 3 years 7.1%, 5 years 7.5%.
Yearly interest = deposit × [ (1 + rate ÷ 4)^4 − 1 ]; total interest = yearly interest × years
A worked example you can check
₹1,00,000 in a 5-year Time Deposit at 7.5% pays ₹7,713.59 a year, or ₹38,568 over 5 years.
Rules at a glance
- Deposit
- ₹1,000 or more, in multiples of ₹100; no upper limit
- Term
- 1, 2, 3 or 5 years
- Interest
- 6.9% to 7.5% a year, paid yearly
Tax
Only the 5-year deposit counts towards the Section 123 (formerly 80C) deduction, under the old tax regime. Interest on all terms is taxable. Tax rules are those of the Income-tax Act, 2025, in force from 1 April 2026; check your own position before relying on them.
Frequently asked questions
What are the current Post Office FD rates?
1 year 6.9%, 2 years 7%, 3 years 7.1% and 5 years 7.5%, for deposits made in October–December 2026 (Q3 FY 2026-27).
Is the interest paid every year?
Yes. Interest is calculated quarterly and paid out once a year.
Which Post Office FD saves tax?
Only the 5-year Time Deposit qualifies for the Section 123 (formerly 80C) deduction, and only under the old tax regime.
How much will ₹1 lakh in a 5-year Post Office FD earn?
At 7.5%, ₹1,00,000 pays ₹7,714 in interest every year, ₹38,568 over 5 years. A 1-year deposit at 6.9% pays ₹7,081.
Can a Post Office FD be closed before maturity?
Not in the first 6 months. India Post states: closed after 6 months but before 1 year, it earns only the Post Office savings account rate; a 2-year or 3-year deposit closed after 1 year earns 2 percentage points less than the deposit rate; a 5-year deposit can be closed after 4 years and then earns only the savings account rate. Rules can change, so confirm at your post office or bank before acting.
Post Office FD or bank FD: which is better?
Compare the rate for the same term, and what you need from the deposit. Post Office deposits are backed by the Government of India, with rates set every quarter; bank deposits are insured up to ₹5 lakh per bank and their rates differ by bank. Interest on both is taxable.
Sources
Rules, rates and definitions on this page come from these official sources. Check the current position there before you decide.
- Ministry of Finance, Department of Economic Affairs · Quarterly notice of small savings interest rates
- India Post · Scheme rules and how to open an account
- National Savings Institute · Small savings scheme rules
- Income Tax Department · Tax on interest and gains, and deductions