Post Office FD Calculator 2026
Calculate the maturity value of a Post Office Time Deposit (TD) for 1, 2, 3 or 5 years at the current rates of 6.9% to 7.5%. Rates effective Q1 FY 2026-27 (April - June 2026), unchanged since January 2024.
Minimum ₹1,000, in multiples of ₹100. No upper limit.
Rates effective Q1 FY 2026-27 (April - June 2026), unchanged since January 2024.
Maturity value after 5 years
₹1,44,995
- Deposit
- ₹1,00,000
- Total interest
- ₹44,995
- Effective annual yield
- 7.71%
Year by year
| Year | Balance if reinvested | Interest received if paid out |
|---|---|---|
| 1 | ₹1,07,714 | ₹7,714 |
| 2 | ₹1,16,022 | ₹15,428 |
| 3 | ₹1,24,972 | ₹23,142 |
| 4 | ₹1,34,611 | ₹30,856 |
| 5 | ₹1,44,995 | ₹38,570 |
The 5-year Time Deposit qualifies for the Section 80C deduction (up to ₹1.5 lakh per year). Interest is taxable; figures rounded to the nearest rupee.
How this Post Office FD calculator works
The Post Office fixed deposit is officially called the National Savings Time Deposit (TD). Pick a tenure and the calculator fills in the current quarter's rate automatically; enter your deposit and it shows the maturity value, total interest and the effective annual yield. The minimum deposit is ₹1,000 (multiples of ₹100) with no upper limit.
Interest on a TD is calculated quarterly but paid annually, which is why the calculator has two views. The reinvested (cumulative) view assumes each year's interest stays with the deposit and keeps compounding: that is the standard maturity figure. The paid-out view shows the fixed interest you receive each year if you draw it, with the principal returned at maturity. Drawing the interest yearly earns less in total because the paid-out money stops compounding.
The formula in plain language
A = P x (1 + r/4)^(4t)
P is your deposit, r the annual rate as a fraction and t the tenure in years. The rate is divided by 4 because interest compounds every quarter, and the exponent counts the number of quarters. Quarterly compounding is also why the effective yield beats the headline rate: 7.5% compounds to 7.71% per year.
Worked example: ₹1,00,000 for 5 years
At 7.5%, the quarterly rate is 1.8750% and the deposit compounds over 20 quarters: 1,00,000 x (1.01875)^20 = ₹1,44,995, of which ₹44,995 is interest. In the annual payout view the same deposit pays ₹7,714 every year for 5 years (₹38,570 in total) and returns the ₹1,00,000 at the end.
Post Office TD rates, Q1 FY 2026-27
| Tenure | Interest rate | Effective annual yield | ₹1,00,000 grows to |
|---|---|---|---|
| 1 year | 6.9% | 7.08% | ₹1,07,081 |
| 2 years | 7% | 7.19% | ₹1,14,888 |
| 3 years | 7.1% | 7.29% | ₹1,23,508 |
| 5 years | 7.5% | 7.71% | ₹1,44,995 |
Rates effective Q1 FY 2026-27 (April - June 2026), unchanged since January 2024.
Things to know before opening a Post Office TD
- Tax benefit: only the 5-year TD qualifies under Section 80C (up to ₹1.5 lakh per year); interest is taxable for all tenures.
- Premature closure: not allowed before 6 months; between 6 and 12 months only the savings rate (4%) applies; after 1 year the rate is cut by 2% for completed years.
- Safety: sovereign guarantee on the full amount, against the ₹5 lakh DICGC insurance cap on bank FDs.
- Auto-renewal: a matured TD can be renewed for the same tenure at the rate prevailing on the maturity date.
For the rate history and quarter-by-quarter changes, see Post Office FD interest rates 2026. Comparing options? Read NSC vs PPF vs FD or try our Post Office RD calculator for monthly deposits instead of a lump sum.
Frequently Asked Questions
What are the Post Office FD interest rates in 2026?
Post Office Time Deposit rates are 6.9% for 1 year, 7% for 2 years, 7.1% for 3 years and 7.5% for 5 years. Rates effective Q1 FY 2026-27 (April - June 2026), unchanged since January 2024.
How is Post Office FD interest calculated?
Interest is calculated with quarterly compounding and paid annually. The maturity formula is A = P x (1 + r/4)^(4t), where P is the deposit, r the annual rate as a fraction and t the tenure in years. Because of quarterly compounding, the effective yield is higher than the headline rate: 7.5% works out to about 7.71% per year.
How much will Rs 1 lakh become in a 5-year Post Office FD?
At the current 7.5% rate, ₹1,00,000 grows to about ₹1,44,995 in 5 years if the interest stays invested, earning ₹44,995 of interest.
Does a Post Office FD give a tax deduction under Section 80C?
Only the 5-year Time Deposit qualifies for the Section 80C deduction, up to ₹1.5 lakh per financial year. The 1, 2 and 3 year deposits have no tax benefit. Interest on all tenures is taxable as income from other sources.
Can I withdraw a Post Office FD early?
Not within the first 6 months. Between 6 and 12 months you get only the savings account rate (4%). After 1 year, premature closure pays the TD rate for completed years minus 2%, so breaking a deposit early costs real money.
Is a Post Office FD safer than a bank FD?
A Post Office Time Deposit is backed directly by the Government of India with no upper limit on the guarantee. Bank deposits are insured by DICGC only up to ₹5 lakh per bank per depositor. For larger amounts, the sovereign guarantee is the key advantage.