Post Office FD Calculator

Post Office Fixed Deposit (FD) Calculator

A Post Office fixed deposit or Post Office time deposit is a fixed deposit investment offered by Indian Postal Services. It is one of the oldest and most preferred forms of investment by a lot of people. A Post Office FD works like a regular fixed deposit where you invest money for a certain period of time at a fixed interest rate. The higher the tenor, the higher the interest rate. Many people choose to invest in a Post Office fixed deposit because it comes with the sovereign guarantee of the government of India. Therefore, for people who want a risk free investment and guaranteed returns, the Post Office FD becomes the ideal option.

Like bank FDs, you can always check your interest income from the invested amount beforehand by using a Post Office FD calculator. It will help in determining the exact amount of interest payout on maturity, the total maturity amount and the interest earned based on the tenor of investment before your actual investment. The Post Office time deposit calculator can be used multiple times to estimate the returns. The Post Office FD calculator 2021 takes various metrics of your FD investment into account and is also easy to use. Here is a look at the details about a Post Office FD calculator.

Post Office Fixed Deposit Interest Rates

A Post Office fixed deposit can be started for a tenor of 1, 2, 3 and 5 years. Currently, the post office FD interest rate is the same for a tenor up to 3 years with higher rates offered for a tenor of 5 years. By using the Post Office FD calculator, you can compare your investment against different tenors and interest rates. Similarly, the Post Office FD interest rates 2021 calculator can also help you in deciding the tenor of your investment. Here is a look at the Post Office interest rate for a fixed deposit for different tenors.

Post Office FD Features & Benefits

Before calculating your returns with a Post Office FD calculator 2021, take a look at some of the features and benefits of a Post Office FD:

1. Nomination facility

While opening the account or later on, you can add nominees to your FD account. The individual that you have nominated can also further nominate a person holding an existing Post Office fixed deposit account.

2. Minimum Investment Amount

You can open a Post Office fixed deposit account with a minimum amount of ₹1,000. There is no maximum limit for the investment amount. A joint account of up to 3 adults can also be opened.

3. Interest Rate

For a tenor of up to 3 years, the interest rate offered in a Post Office fixed deposit is 5.5%. For a tenor of 5 years, the Post Office FD interest rate is 6.7%. Senior Citizen Post Office FDs offer senior citizens an interest rate of 7.4% p.a.

4. Integration With the Savings Account

The Post Office FD account holder can instruct the Post Office to redirect his/her interest income to a savings account in the same office. However, this facility can only be availed at the Head of Departmental sub-offices.

5. Integration With the Recurring Deposits

The Post Office FD account holder can also redirect their monthly FD interest payment to a recurring deposit. To avail of this facility, the savings account has to be in the same post office. This facility can also be availed only at the Head of Departmental Sub-Offices.

6. Taxation

All tax benefits under Section 80C are applicable only on 5 year Post Office FD. TDS on Post Office FD interest income is as per the applicable tax slab.

7. Renewal of a Post Office FD

You can renew your FD upon maturity. For this, you need to fill out a form or the auto-renewal facility can also be availed at a post office equipped with a CBS system.

8. Premature Withdrawal

Premature withdrawal of an FD is not allowed before six months of the investment date. If the FD is closed between 6 months and 1 year of starting, only the savings account interest rate will be applicable. If it is closed after a year, a 2% penalty will be charged on the interest rate.

Make sure you read all these features and benefits before calculating your FD with a Post Office Deposit calculator or Post Office time deposit calculator.

How is Post Office FD Maturity Amount Calculated?

In a Post Office FD calculator, the maturity amount is calculated by a formula. Let’s understand how the Post Office FD calculator works with an example.

Post Office FD interest formula to calculate FD returns is:

Maturity Value = Principal * (1+Interest rate/4) (n*4).

Here, n is the number of years.

Sunny is investing ₹1 lakh in a fixed deposit for a tenor of 5 years. The interest rate for his tenor is 7.8%. Here is how the Post Office FD interest rate will be calculated in this case with the help of the above formula.

Maturity value = 1,00,000 * (1+.078/4) (5*4)

Maturity Value = ₹1,47,145

Therefore, the maturity amount that Sunny will receive is ₹1,47,145 and the interest earned is ₹47,145.