Post Office FD Calculator
Enter your deposit and tenure to see the exact maturity value and interest on a Post Office Time Deposit (FD) at the current rates – 6.9% to 7.5%.
Results update live as you type. Interest is compounded quarterly, exactly as the Post Office calculates it. The monthly equivalent is only an average for comparison – Post Office FD interest is actually paid once a year, not monthly.
An FD with the Government of India, where the rate is fixed for the full tenure and the money is completely safe - that is the Post Office FD, officially called the Post Office Time Deposit.
Deposit once, leave it for 1, 2, 3 or 5 years, and take a bigger amount at maturity. Use the calculator above for exact figures, then read the current rates, rules and the closure traps below.
What Is a Post Office FD (Time Deposit)?
It is a fixed deposit scheme of India Post under the Government of India. Its official name is the National Savings Time Deposit, and banks call the same product an FD, which is why most people search for it as Post Office FD.
You deposit a lump sum for a fixed tenure. Interest is calculated with quarterly compounding, but it is paid once a year. Your rate stays locked at whatever was running on the day you opened the account.
There is no maximum deposit limit in this scheme. The minimum is just ₹1,000, in multiples of ₹100.
How to Use This Post Office FD Calculator
Step 1: Pick an amount from the chips or type your own deposit.
Step 2: Choose the tenure - 1, 2, 3 or 5 years. The current official rate for that tenure fills in automatically, and you can edit it to test other rates.
Step 3: Read the maturity value, total interest and the monthly equivalent in the pink box. The monthly figure is only an average - read the monthly interest section below before planning around it.
Post Office FD Interest Rates 2026
| Tenure | Interest Rate | Value of ₹1 Lakh at Maturity | Interest Earned |
|---|---|---|---|
| 1 Year | 6.9% | ₹1,07,081 | ₹7,081 |
| 2 Years | 7.0% | ₹1,14,888 | ₹14,888 |
| 3 Years | 7.1% | ₹1,23,508 | ₹23,508 |
| 5 Years | 7.5% | ₹1,44,995 | ₹44,995 |
These are the official rates for the October-December 2026 quarter, unchanged for several quarters now. The government reviews small savings rates every 3 months, but a change affects only new accounts - your account keeps its opening-day rate till maturity.
The 5-year deposit is the most popular for two reasons: the highest rate of 7.5%, and a Section 80C tax deduction on the deposit, which only the 5-year tenure gets.
Quarterly compounding is why the maturity value beats simple interest at the same rate. If you want to see that difference yourself, run the same amount on our Interest Calculator with compound interest set to quarterly.
Post Office FD Interest Chart - ₹50,000 to ₹10 Lakh
| Deposit | 1 Year Interest | 2 Years Interest | 3 Years Interest | 5 Years Interest |
|---|---|---|---|---|
| ₹50,000 | ₹3,540 | ₹7,444 | ₹11,754 | ₹22,497 |
| ₹1,00,000 | ₹7,081 | ₹14,888 | ₹23,508 | ₹44,995 |
| ₹2,00,000 | ₹14,161 | ₹29,776 | ₹47,015 | ₹89,990 |
| ₹5,00,000 | ₹35,403 | ₹74,441 | ₹1,17,538 | ₹2,24,974 |
| ₹10,00,000 | ₹70,806 | ₹1,48,882 | ₹2,35,075 | ₹4,49,948 |
Read the chart simply: the longer the tenure, the bigger the jump, because both the rate and the compounding period increase. On ₹1 lakh, shifting from 3 years to 5 years almost doubles the interest - ₹23,508 to ₹44,995.
Does Post Office FD Pay Monthly Interest?
No - and this is the most common confusion about this scheme. Post Office FD interest is paid once a year, on the anniversary of your deposit. There is no monthly, quarterly or half-yearly payout option like bank FDs offer.
The monthly equivalent in the calculator above (for example, about ₹750 a month on a 5-year ₹1 lakh deposit) is only the total interest divided by months, shown so you can compare schemes. The money does not actually reach you monthly.
If your real need is cash in hand every month, the Post Office has a different scheme built exactly for that - the Monthly Income Scheme, which pays interest monthly. Check your figures on the Post Office MIS Calculator before choosing between the two.
Post Office FD for Senior Citizens
Be clear about one thing first: Post Office FD pays no extra rate to senior citizens. The table above applies equally at age 35 and age 75. This is different from bank FDs, where seniors usually get an extra 0.50%.
Even so, the 5-year Post Office FD at 7.5% still beats what big banks pay their general customers today (around 6.05-6.60% for 5 years), and it carries a full government guarantee. That is why many retirees split money between the two - bank FD for the senior extra and monthly payout, Post Office FD for the higher base rate.
For those above 60, the Post Office also runs the Senior Citizens Savings Scheme (SCSS), which pays a higher rate than this FD. If you are eligible for SCSS, compare it before locking money for 5 years here.
Post Office FD Rules You Should Know
- Deposit: minimum ₹1,000, in multiples of ₹100, no maximum limit
- Accounts: single and joint accounts both allowed; a guardian can open one for a minor; NRIs cannot open this account
- Interest: compounded quarterly, paid annually; rate locked at opening
- Extension: after maturity you can extend the account for the same tenure again, at the rate running on the maturity date - apply within the time window for your tenure
- Transfer: the account can be transferred from one Post Office to another
- Nomination: add a nominee at opening itself; it saves your family trouble later
Closing a Post Office FD Before Maturity
| When You Close | What You Get |
|---|---|
| Before 6 months | Not allowed at all |
| After 6 months, before 1 year | Only the Post Office savings account rate (4%) on your deposit |
| 1, 2 or 3-year FD, after 1 year | TD rate minus 2% for the completed years |
| 5-year FD opened after 9 Nov 2023 | Cannot be closed before 4 years; after 4 years, only the 4% savings rate for the whole period |
The last row is the trap most people miss. A 5-year Post Office FD opened today is effectively locked for 4 years, and breaking it even in the fifth year wipes out the FD rate entirely - you get just 4%. Deposit only money you are sure you will not need.
Tax on Post Office FD Interest
- Interest is fully taxable at your income tax slab, in the year it is credited
- Section 80C deduction applies only to the 5-year deposit, within the overall ₹1.5 lakh 80C limit; the 1, 2 and 3-year deposits get nothing
- TDS is deducted when your interest in a financial year crosses ₹50,000 (₹1,00,000 for senior citizens) - 10% with PAN, more without it
Post Office FD vs Bank FD - Which Is Better?
| Point | Post Office FD | Bank FD |
|---|---|---|
| Safety | Full government guarantee, no limit | DICGC insurance only up to ₹5 lakh per bank |
| 5-year rate today | 7.5% | Big banks around 6.05-6.60% |
| Senior citizen extra | No extra rate | Usually +0.50% |
| Monthly interest option | No - interest paid yearly | Yes, monthly payout available |
| Breaking early | Strict - 5-year FD locked 4 years | Usually a 0.5-1% penalty only |
The honest summary: for money you can lock away untouched, the Post Office FD rate and guarantee are hard to beat. For monthly income, senior benefits or flexible breaking, a bank FD fits better. Run both side by side on our FD Calculator with your own amount before deciding.
Benefits and Drawbacks
Benefits:
- Full government guarantee on deposit and interest, with no upper limit
- 5-year rate of 7.5% beats big bank FDs, plus an 80C deduction on the deposit
- Rate locked for the full tenure - rate cuts later do not affect you
- Starts at just ₹1,000, with Post Offices available in small towns too
Drawbacks:
- No monthly interest payout - interest reaches you only once a year
- No extra rate for senior citizens
- Premature closure is costly, and the 5-year deposit is locked for 4 years
- Interest is taxable, and TDS applies above the yearly threshold
Disclaimer: This calculator and information are based on the official Post Office Time Deposit rates for the October-December 2026 quarter (6.9%, 7.0%, 7.1%, 7.5%). The government can revise rates every quarter, though an opened account keeps its rate till maturity. Please confirm the latest rates and rules at your Post Office before depositing. PihuNow is not a government body, and this page is not investment advice.
Frequently Asked Questions
What is the interest of 1 lakh FD in post office?
On ₹1 lakh, the interest depends on the tenure: ₹7,081 in 1 year at 6.9%, ₹14,888 in 2 years at 7.0%, ₹23,508 in 3 years at 7.1%, and ₹44,995 in 5 years at 7.5%, when the deposit matures at ₹1,44,995. Interest is compounded quarterly and paid once a year.
What is 10 lakh FD in post office?
A ₹10 lakh Post Office FD for 5 years at 7.5% earns ₹4,49,948 in interest and matures at ₹14,49,948. For shorter tenures, the same deposit earns ₹70,806 in 1 year, ₹1,48,882 in 2 years and ₹2,35,075 in 3 years. There is no maximum deposit limit in this scheme.
Which bank gives 9.5 interest on FD?
No bank offers 9.5% on FDs today. That rate existed briefly in 2023, when Unity Small Finance Bank paid 9.5% to senior citizens on a special tenure. The highest FD rates now are around 8.25% at small finance banks, while the 5-year Post Office FD pays 7.5% with a full government guarantee.
Is post office FD good or bank FD?
Both are safe, but they suit different needs. Post Office FD gives a higher 5-year rate (7.5%) and a full government guarantee, but no senior-citizen extra and no monthly payout. Bank FDs give seniors an extra 0.50% and monthly interest options, but big-bank rates are lower and insurance covers only ₹5 lakh.