Post Office FD Calculator
Estimate Post Office Time Deposit annual interest, total receipts, TDS, income tax, inflation-adjusted value, five-year tax benefit and premature closure under current POTD rules.
Last Updated: July 22, 2026Calculate Post Office Time Deposit Returns
Current July–September 2026 rates are prefilled. POTD interest compounds quarterly but becomes payable at the end of each year.
Enter valid figures and select Calculate POTD.
| Year | Annual interest | Estimated TDS | Interest after estimated tax | Cash received by year | Reinvested end balance |
|---|
POTD annual interest is payable each year. The maturity principal is not a fully cumulative five-year FD balance. The reinvested figure assumes you separately invest each annual payout at the rate entered above.
Current POTD Rate Comparison
| Tenure | Current rate | Annual interest payout | Total interest | Total gross receipts | 80C deposit eligibility |
|---|
What Is a Post Office FD Calculator?
A Post Office FD calculator estimates returns from a National Savings Time Deposit account. The product is also called Post Office Time Deposit, POTD or Post Office TD. You place one lump sum for one, two, three or five years. The applicable government-notified rate on the opening date remains attached to that deposit until maturity.
The name “post office FD” is common, but its cash-flow pattern differs from a typical cumulative bank fixed deposit. POTD interest compounds quarterly for calculating the yearly interest. That interest becomes payable at the end of each year. The rules state that unpaid due interest does not earn extra interest inside the Time Deposit account.
This tool therefore separates principal returned at maturity from annual interest payouts. It also shows total receipts, a separate reinvestment illustration, TDS, estimated income tax, inflation and premature closure. This structure prevents the common mistake of compounding every annual payout inside POTD for the full term.
How to Use This Post Office FD Calculator
- Enter a deposit of at least ₹1,000 in a multiple of ₹100.
- Select the one, two, three or five-year Time Deposit tenure.
- Check the prefilled interest rate. Edit it only if you are modelling a different notified quarter.
- Select the resident depositor type for the simplified TDS threshold.
- Choose the TDS setting and your estimated marginal income-tax rate.
- Enter a return only if you plan to reinvest annual payouts outside the Time Deposit account.
- Add an inflation assumption to see purchasing power.
- Enter a closure month to view the rule-based premature calculation. Use a month before contractual maturity.
- Select Calculate POTD. Review annual payout, total receipts, tax estimates and both tables.
The calculator uses the July–September 2026 rates by default. Always confirm the rate shown on the opening date because the government reviews small-savings rates every quarter.
Post Office Time Deposit Interest Rates in 2026
For July 1 to September 30, 2026, the annual rates are 6.9% for one year, 7.0% for two years, 7.1% for three years and 7.5% for five years. The Ministry of Finance kept small-savings rates unchanged from the preceding quarter.
The official Q2 FY 2026–27 small-savings notification supports these current inputs. The rate attached to a new deposit depends on its opening date. A later quarterly change normally affects new accounts, not the contracted rate of an existing account.
A depositor does not receive a separate senior-citizen bonus on POTD. This differs from many bank FDs. Senior status matters here only for tax provisions, including the higher interest TDS threshold and any eligible deposit-interest deduction.
Post Office FD Formula
The scheme compounds the nominal annual rate quarterly to calculate interest payable for a completed year:
Annual interest = P × [(1 + r ÷ 4)4 − 1]
- P is the original deposit.
- r is the annual interest rate as a decimal.
- 4 represents quarterly compounding.
Total interest for a fully completed term equals annual interest multiplied by the selected number of years, subject to official rupee rounding. Total gross receipts equal principal plus all annual interest payouts.
Worked Example
Assume you place ₹5,00,000 in a five-year POTD at 7.5%. Quarterly compounding produces an effective annual payout yield of about 7.71%. Estimated interest payable each year is about ₹38,568.
Across five years, gross interest is about ₹1,92,840. The Post Office returns ₹5,00,000 principal at maturity, while interest is paid annually. Total gross receipts across the term are about ₹6,92,840. If you separately reinvest each payout at 4%, the end wealth is higher because earlier payouts earn an outside return. Actual credits may differ by rupee rounding.
Annual Payout Versus Cumulative Maturity
A cumulative bank FD normally leaves interest inside the same deposit. Future interest then applies to principal plus previous interest. POTD instead makes yearly interest due for payment. The original deposit remains the principal repaid at maturity.
If you leave due interest unclaimed, the Time Deposit Scheme does not grant extra interest on it. You may request credit of annual interest to your Post Office Savings Account. You may also choose another investment, but its rate, tax and risk remain separate from POTD.
The calculator's “gross end wealth if payouts reinvested” is an outside-investment scenario. It is not a promised Post Office maturity value. Enter 0% when you plan to withdraw or spend each payout without reinvesting it.
Post Office FD Tax and TDS
POTD interest is taxable according to the account holder's applicable income-tax position. The five-year deposit does not make its interest tax-free. The calculator multiplies total interest by the selected marginal rate for a simplified final-tax estimate. It excludes cess, surcharge, rebates, deductions, other income and regime-specific calculations.
From April 1, 2026, the consolidated TDS provision is in Section 393 of the Income-tax Act, 2025. For covered interest paid by a bank, co-operative bank or notified post-office scheme to a resident, the threshold is ₹50,000 for a person other than a senior citizen and ₹1,00,000 for a senior citizen. The calculator tests each annual payout from this one deposit against the selected threshold.
TDS is not a separate cost in addition to final income tax. It is tax credit. The tool displays estimated TDS and estimated final tax separately and subtracts only final tax when discussing after-tax returns. Aggregation across accounts, timing within a tax year, PAN status and declarations may change actual deduction.
Eligible resident senior citizens may receive a deduction for qualifying deposit interest under Section 153 of the Income-tax Act, 2025, subject to its conditions. The calculator does not apply that deduction automatically.
Five-Year POTD and the Old-Regime Tax Benefit
A qualifying five-year Post Office Time Deposit is commonly included among eligible old-regime Section 80C investments. The overall deduction limit is ₹1,50,000 and is shared with other eligible payments and investments. One, two and three-year POTD deposits do not receive this five-year benefit.
The tool shows a potential saving only for the five-year tenure. It multiplies the lower of the deposit or ₹1,50,000 by your selected tax rate. This is a planning ceiling, not a tax claim. Available limit, chosen tax regime, taxable income and the law applicable to your tax year control the actual benefit.
The deposit deduction does not exempt yearly interest. Keep annual interest certificates, TDS records and deposit documents for return preparation.
Premature Closure Rules
The National Savings Time Deposit Scheme, 2019 does not permit withdrawal before six months. If closure occurs after six months but before one year, interest applies at the Post Office Savings Account rate for completed months.
For a two, three or five-year account closed after one year, the scheme recalculates interest at two percentage points below the rate applicable to a one, two or three-year Time Deposit for the completed period. A five-year account closed after four years uses the three-year Time Deposit rate as the reference. Broken months use the Post Office Savings Account rule.
Interest already paid is recovered or adjusted against the recalculated amount. The output labelled premature closure recalculated value represents principal plus eligible recalculated interest across the holding period. The cash handed over on closure may be lower because annual payouts already received are adjusted. India Post's settlement controls the final amount.
POTD Account Rules to Know
- The minimum deposit is ₹1,000, followed by multiples of ₹100.
- The scheme does not prescribe a maximum deposit amount.
- An eligible person may hold more than one account.
- Single, joint and eligible minor or guardian-held accounts are available under scheme conditions.
- Interest is calculated with quarterly compounding and paid annually.
- The rate on the opening date applies through the original term.
- Annual interest may be credited to the holder's Post Office Savings Account.
- A matured account may be extended for the same original tenure, subject to the prescribed option period and rate at maturity.
- Nomination, KYC, operating instructions and payment modes must follow current India Post processes.
Post Office FD Versus Bank FD
| Feature | Post Office Time Deposit | Typical bank FD |
|---|---|---|
| Issuer | Government small-savings scheme | Bank deposit product |
| Standard tenures | 1, 2, 3 or 5 years | Varies widely by bank |
| Interest handling | Quarterly compound calculation, annual payout | Cumulative or periodic payout options |
| Senior rate bonus | No separate POTD bonus | Often offered, amount varies |
| Premature closure | Scheme formula after six months | Bank-specific rate and penalty |
| Tax-saving tenure | Qualifying 5-year POTD | Qualifying 5-year tax-saving FD |
Compare after-tax cash flow, access rules and payout timing, not only the quoted rate. A bank's cumulative option may suit a future lump sum, while POTD's annual payout may suit planned income or separate reinvestment.
Limitations of This Calculator
The tool assumes the selected rate remains the contractual rate and uses full-year payout calculations. It does not model an exact opening date, tax-year boundaries, post-office rounding entries, delayed collection, extensions, death claims, pledging, joint ownership or post-maturity interest.
The TDS estimate looks only at this deposit and treats each scheme year as one tax-year block. The 80C and final-tax figures are simplified estimates. The premature calculation follows the published rule structure but does not reproduce an official ledger, recovery statement or office-specific rounding.
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Compare POTD with bank deposits, recurring savings and long-term government schemes.
Frequently Asked Questions
What are the Post Office FD rates in July 2026?
For July–September 2026, POTD rates are 6.9% for one year, 7.0% for two years, 7.1% for three years and 7.5% for five years.
How is POTD interest calculated?
The nominal annual rate compounds quarterly to calculate interest payable at the end of each completed year. Due annual interest does not earn additional POTD interest.
What is the minimum and maximum POTD deposit?
The minimum is ₹1,000 and further amounts must be multiples of ₹100. The scheme does not prescribe a maximum deposit.
Does a five-year Post Office FD compound until maturity?
Not as a fully cumulative balance. Interest is calculated with quarterly compounding but paid annually. The original principal returns at maturity.
Is Post Office Time Deposit interest taxable?
Yes. POTD interest is generally taxable according to the holder's applicable tax position. The five-year deposit benefit does not make interest tax-free.
What is the POTD TDS threshold in 2026?
For covered resident interest under current Section 393, the threshold is ₹50,000 for a person other than a senior citizen and ₹1,00,000 for a senior citizen, subject to the provision's conditions.
Which POTD qualifies for the old-regime 80C benefit?
The qualifying five-year Post Office Time Deposit may count within the shared ₹1.5 lakh old-regime deduction limit. Shorter POTD tenures do not qualify.
Can I close a Post Office FD before maturity?
No withdrawal is allowed before six months. Later premature closure uses the scheme's savings-rate or reduced Time Deposit rate formula, and earlier interest payouts are adjusted.
Do senior citizens get a higher POTD rate?
No separate senior-citizen interest bonus applies to POTD. Senior status may affect the TDS threshold and eligible tax deduction.