About the Post Office Time Deposit Calculator
This Post Office Time Deposit calculator shows what a National Savings Time Deposit — often called a Post Office FD — pays you. Choose the tenure (1, 2, 3 or 5 years), enter the amount and the deposit date, and the calculator shows the interest credited every year, the total interest over the term, the total you receive and the maturity date. It uses the rates notified by the government: 6.9% for 1 year, 7.0% for 2 years, 7.1% for 3 years and 7.5% for 5 years. The National Savings Institute lists these rates from 1 January 2024 to 30 September 2026, and the Department of Economic Affairs kept them unchanged for October–December 2026.
A Post Office TD works differently from most bank FDs. Under the Time Deposit Scheme rules, interest is compounded quarterly but paid out at the end of each year, and no extra interest is paid on interest you leave uncollected. So the real return is the annual payout times the number of years, not a fully compounded maturity value. The calculator shows both, so you can see what you would gain by reinvesting each payout (for example into a Post Office RD) at the same rate.
Rules to know: the minimum deposit is ₹1,000, in multiples of ₹100, with no maximum. The rate on the day you open the account is fixed for the tenure. Deposits in the 5-year TD qualify for the Section 80C deduction under the old tax regime, and all TD interest is taxable at your slab rate.
With the default inputs, the total received (principal + interest) is ₹138,570.00. Change any value above to recalculate instantly.
How to use the post office time deposit calculator
- 1Enter the amount you plan to deposit.
- 2Choose the tenure: 1, 2, 3 or 5 years.
- 3Keep the notified rate, or switch it off to enter the rate on an older account.
- 4Enter the deposit date to see payout and maturity dates.
- 5Read the yearly payout, total interest and total received.
Formula and method
The National Savings Time Deposit Scheme, 2019 says interest is compounded quarterly and payable at the end of each year, and that no additional interest is paid on interest that has fallen due. So each year the deposit P earns (1 + r/400)^4 − 1 of its value, where r is the annual rate in percent, and that amount A is paid out (or credited to your savings account). Over n years you receive A × n plus your principal back. Interest is rounded to the nearest rupee as the rules require.
Many online calculators show P × (1 + r/400)^(4n), which assumes the interest is reinvested at the TD rate. That figure is shown separately as the reinvested value — you can only earn it by reinvesting each payout yourself.
- P
- Deposit amount
- r
- Annual interest rate in percent
- n
- Tenure in years (1, 2, 3 or 5)
- A
- Interest paid at the end of each year
Worked examples
₹1,00,000 in a 5-year TD at 7.5%
Quarterly compounding at 7.5% gives 7.71% a year, so ₹7,714 is paid each year. Over five years you receive ₹38,570 in interest plus your ₹1,00,000 back. Had every payout been reinvested at the same rate, the deposit would have grown to about ₹1,44,995.
₹50,000 for 1 year at 6.9%
One year at 6.9% compounded quarterly yields 7.08%, so the ₹50,000 deposit pays ₹3,540 of interest at maturity.
₹2,00,000 for 3 years at 7.1%
The 3-year rate of 7.1% compounded quarterly pays ₹14,583 a year, ₹43,749 over the term, plus the ₹2,00,000 principal at maturity.
Frequently asked questions
What are the current Post Office Time Deposit rates?+
For October–December 2026 the rates are 6.9% for a 1-year TD, 7.0% for 2 years, 7.1% for 3 years and 7.5% for 5 years. These have applied since 1 January 2024. The rate on the day you open the account is fixed until maturity.
How is Post Office TD interest calculated?+
Interest is compounded quarterly but paid annually. On a 7.5% 5-year TD, ₹1,00,000 earns ₹7,714 each year (an effective 7.71%). Interest that you do not withdraw does not earn further interest, so total interest is the annual payout times the number of years.
Can I close a Post Office TD early?+
Not in the first six months. Between six months and one year you get the Post Office savings account rate. After one year, a 2, 3 or 5-year deposit earns 2 percentage points less than the TD rate for the completed period (for example the 1-year rate minus 2 after one full year), and any interest already paid is recovered. A 5-year TD closed after four years gets the 3-year TD rate instead.
Is Post Office TD interest taxable?+
Yes. Interest is added to your income and taxed at your slab rate. Only the 5-year TD deposit qualifies for the Section 80C deduction (old regime). TDS can apply when interest crosses the threshold, unless you submit Form 15G or 15H.
Is a Post Office TD better than a bank FD?+
A Post Office TD is backed by the Government of India, while bank deposits are insured up to ₹5 lakh by DICGC. Rates are often similar to or higher than large public sector banks, but bank FDs offer more tenure choices, senior citizen rates and cumulative payouts.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.
Sources