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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.

Deposit Amount
Tenure
Months
Interest Rate
%
Your Total Maturity Amount is
Total Maturity Amount
Total Investment
Total Interest Earned

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.

Deposit Tenor
Post Office FD rates (p.a.)
1 year
5.5%
2 years
5.5%
3 years
5.5%
5 years
6.7%

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.

FAQs

  • ✔️What is a Post Office Fixed Deposit (POFD)?

    A Post Office fixed deposit is a fixed deposit investment tool offered by Indian Postal Services. In a Post Office FD, you can invest your amount for a certain period of time at a fixed interest rate. The interest income is earned at the time of maturity.

  • ✔️What are the upsides of using a Post Office FD calculator?

    The upside of using a Post Office FD calculator is that you can plan your investment in an efficient manner as it lets you determine 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.

  • ✔️How to calculate the Post Office FD interest payout?

    The Post Office FD interest payout can be calculated easily by using the Post Office FD calculator.

  • ✔️How to calculate the interest compounded quarterly?

    To calculate the interest compounded quarterly, you can use the below formula:

    Principal * (1 + Interest Rate/4)^(n*4), where n is the number of years.

  • ✔️What is the interest of 1 lakh in the Post Office?

    For an amount of ₹1 lakh, the interest earned in a Post Office fixed deposit will be ₹5,614 for a year, ₹11,544 for two years and ₹17,807 for three years at an interest rate of 5.5%. For a tenor of 5 years, the interest earned will be ₹39,407.

  • ✔️What is the interest rate on FD in Post Office?

    The interest rate of a Post Office FD is 5.5% for a tenor of 1, 2 and 3 years. For a tenor of 5 years, the interest rate is 6.7%.

  • ✔️Which FD is the best, Bank or Post Office?

    Bank fixed deposits sometimes offer a higher interest rate. However, the Post Office FD comes with the sovereign guarantee of the government of India. An investor should look at all the features and benefits before choosing the best fixed deposit investment for him/her.

  • ✔️Is a Post Office FD safe?

    A Post Office FD is one of the safest investment options in India as it is offered by the Indian Postal Services and comes with the backing of the Indian government.

  • ✔️Is FD tax-free in the Post Office?

    The tax benefits under Section 80C are applicable only on a Post Office FD of 5-year tenor. However, the interest rate earned on the FD is liable for taxes.

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