What Is the Post Office FD Calculator, and How Does It Work?

Save & Invest

The Post Office FD Calculator will allow you to estimate the maturity amount for a fixed deposit in the Post Office Bank. By using the Post Office FD Calculator, you can get an estimate of the amount you will receive at maturity. If you wish to calculate the post-FD returns, you will need to enter the amount of the investment, the tenure, and the period of compounding at the Post Office.

Fixed Deposits (POFDs) and Post Office Time Deposits (POTDs) are two of the oldest and most popular investment options offered by the Indian Postal Services. India’s government backs them, so they are generally considered safe. Therefore, it has been one of the most popular investment avenues.

Post Office FD Features and Benefits

Requirements and Tenure: Postal fixed deposits last 1–5 years. Post offices offer fixed deposits. Funding can be done with cash or checks. When a check is cashed, the date it was opened is considered. NRIs cannot access Post Office FDs. A parent or legal guardian can create a Post Office FD account in the minor’s name. Ten-year-olds and older are eligible to open and manage the accounts. Minors must convert their accounts after reaching adulthood.

Investment Minimum: One deposit per account for Post Office Fixed Deposits. POFDs have a minimum investment of 200 INR and an unlimited maximum investment. An investment must be made in multiples of 200 INR. Any post office allows investors to open multiple accounts. An individual can open a joint account, and a single account can be converted into a joint account.

Rate of Interest: The interest rate for a five-year deposit is announced each year before April 1. Typically, it is aligned with G-sec rates of similar maturity with a spread of 0.25 percent. Interest is payable every quarter, but is computed annually. This scheme is offered by the government; therefore, it does not require credit. Post Office FD provides attractive interest rates that are often higher than bank rates.

Integration with the post office savings account: The account holder may direct interest earned from the savings account to their post office savings account. The rate of return remains the same.

Recurring Deposits with the Post Office: Upon the investor’s request, the earned interest is redirected to a %-yearr post office recurring deposit. It is also necessary for both accounts to be located at the same post office. Only the Head of Departmental Sub-offices has permission to view information.

Regarding taxation: It is impossible to deduct interest on fixed deposits that have a tenure of fewer than five years. In contrast to this, a 5-year Post Office Fixed Deposit is eligible for tax exemption under Section 80C. The interest that is earned is included in the taxable income of the investor and is taxed at the applicable rate. TDS is a tax that is applied to interest that is paid by the post office. Unless TDS is deducted from your income, you are required to file a return of income.

The maturity period: You may extend your investments at maturity. A form can be filled out, or, if the post office is equipped with a CBS system, automatic renewal can be arranged.

Withdrawal Prematurely: You are not permitted to withdraw before six months. You are only entitled to earn interest on withdrawals between six months and one year, just as if you were withdrawing funds from a savings account. There is a penalty of 1% for all withdrawals made after one year.

Post Office FD Scheme Tax

  • The savings on Post Office Fixed Deposits for 5 years may be deducted from your taxable income. The investment in a 5-year Post Office FD is tax deductible up to a limitation of Rs. 1,50,000 under Section 80C. With an average inflation rate of around 4.09%, Post Office FD is an excellent option for saving money on parking. Post offices provide ETE (Exempt-Tax-Exempt) time deposits. Investments and lump-sum payments are tax-free, but taxable interest is earned.
  • For interest earned over 40,000 INR, 10% TDS is deducted (if PAN details are provided, otherwise 20%). INR 50,000 is the maximum tax deduction available to seniors. Those who are entitled to be tax-free should file Form 15G/H. If no TDS is deducted, that amount must be disclosed on the taxpayer’s tax return.
  • Tax benefits are not available for Post Office Fixed Deposits held by children under the age of five.
  • Interest on a Post Office Fixed Deposit is compounded quarterly. Taxes are due on the interest earned. It is taxed at the current rate and added to the investor’s income that is subject to tax. 


It is the same concept as bank deposits in that Post Office FDs are deposited for a certain period at a fixed interest rate that is guaranteed for the duration of the deposit. 

As a general rule, the longer the term of the investment, the higher the interest rate is likely to be. You can earn a guaranteed return on your investment if you invest the right way.

A Post Office FD is available for a period of 1, 2, 3, and 5 years. Interest rates vary from country to country. 

There is a quarterly calculation, but the payment is due once a year. There is a tax deducted from the interest received from postal services. Post Office FD allows tax benefits under Section 80C of the Income Tax Act.

Piramal Finance Post Office FD calculator can be accessed to calculate the same. This calculator will be able to save time when used while calculating. The Post Office FD Calculator allows you to enter a value for the FD. A variety of compounding options are offered to the investor, including regular, semi-annual, annual, and annual compounding.

The investor may adjust the rate of interest and the duration of the investment by adjusting the sliders for interest rate and tenure, as appropriate. With all of these details entered, the Post Office FD Calculator displays a graphic and numerical representation of the amount invested, wealth gained, and maturity value. By using the Post Office FD Calculator investors can perform calculations in a matter of seconds, allowing them to devote more time to more important activities.