Everything You Need to Know About Post Office FD Calculator

Save & Invest

Not sure what is FD Calculator? Use a fixed deposit calculator to see the potential interest rate you can earn from a fixed deposit. With the help of the Post Office FD Calculator tool, you can quickly get to know the interest rates on India Post Office Fixed Deposits. This article will explain a Post Office FD Calculator and how to get the most out of it.

What is Post Office Fixed Deposit (FD)?

The Indian Postal Services are the oldest and most popular investment option is the Post Office Fixed Deposit or a Post Office Time Deposit. Due to the help of the Indian government, they are seen as a secure way to invest money. As a result, it is a well-known investment option for earlier generations.

Like a bank deposit, a post office fixed deposit allows the funds to be deposited by the investors for a fixed time and at a fixed interest rate. The interest rate offered rises with the length of the investment. An investor can receive a fixed return on their investment. TDS is applied to the interest that the post office pays. Although it is calculated quarterly, the interest is due annually. Under section 80C of the Income Tax Act, a 5-year post office FD is eligible for tax savings.

A minimum of INR 200 must be invested, followed by multiples of INR 200.

A post office FD may be transferred between post offices. There is a six-month withdrawal restriction on post office FDs. After that, early withdrawal is possible with a 1% penalty. The Post Office FD is a good choice for highly cautious investors who want to make a one-time investment.

Interest Rate for Post Office FDs

At the start of each quarter, the government fixes the rates. The ones mentioned in the table have been set for the April 2022–June 2022 quarter. The Post office FD calculator is calculated on this interest rate:

TenureInterest Rate (per annum) 
1 year5.50% 
Two years5.50%
Three years5.50%
Five years6.70%

What advantages does using the post office FD calculator offer?

Among the main perks of using an FD calculator are:

  1. The use of this tool is quite simple.
  2. It compares various post office FD investment factors for giving a final output.
  3. Estimating the amount of money you can get at maturity and the interest rate is also very easy.
  4. You can use this FD calculator free of cost several times to calculate returns.
  5. The calculator should complete the FD calculations in a matter of seconds. Investors benefit from the time and effort savings.

Why should I buy a post office FD?

Here are some of the main features and advantages of a Post Office FD investment that justify why investors ought to think about doing so:

1.      Facility for nomination

Investors can add nominees to their accounts when they open their Post Office FD investment accounts. If the original investor dies, the legal heir can claim the fixed money.

2.      Cheapest investment

A minimum deposit of Rs. 1,000 is needed to open a Post Office fixed deposit account, and there is no upper limit. The program also allows up to three adults to open a joint account.

3.      Favourable interest rates

Post office FDs offer more interest rates compared to bank FDs. Senior citizens can also benefit the most from this as they can get better rates.

4.      Taxation

Investors who buy a 5-year Post Office FD can also get many tax benefits under Section 80C of the Income Tax Act, 1961. On the maturity amount received from a Post Office FD, TDS is applied.

5.      Simple renewal

At maturity, the investor can quickly renew a post office FD investment. One must either fill out a form or choose the auto-renewal option.

6.      Premature withdrawal

An investor can not remove a post office FD investment for six months after the investment date. If an FD is closed within six months to one year after the investment date, the investor only receives the interest rate on a savings account. A 2% penalty is added to the interest earned if the account is closed before the year is out.

Use of the Post Office FD Calculator Has Many Benefits

Using the online post office FD calculator has the following benefits:

  1. You can avoid manually doing the calculations that need a complex formula by using the post office FD calculator. The calculator applies the calculation and displays the outcomes right away.
  2. The FD calculator provides precise numbers. This removes the issue of mathematical errors, which can occur when you do manual computations.
  3. You can use the post office FD calculator to plan your investments since the returns from post office FDs are guaranteed.
  4. Different interest rates are available on various investment terms in post office FDs. You can quickly enter the necessary numbers in the calculator to obtain the desired results. This allows you to plan and maximise the rewards of your investment.
  5. The post office FD calculator inputs can be changed as often as you like. This allows you to compare various choices to select the best investment.
  6. You can not take money out of your fixed deposit before it matures; thus, using the post office FD calculator is also essential. If you do, you might have to give up a vast portion of the interest you had been earning. As a result, you are advised to do a deep analysis before investing in any fixed deposit scheme. You can do this using the FD calculator at the post office.

Final Thoughts

Due to the control of the Government on these schemes and the resulting security, many investors in India prefer to invest in Post Office fixed deposits. The Post Office FD calculator may be the best option for investors who wish to invest in a risk-free environment and demand assured profits. Interested in reading more investment-related blogs and posts on personal loans and financial calculators? Head on over to Piramal Finance!