How much interest will I get on a 1 lakh FD in the post office?

It depends on the term you choose. Enter 100000 in the calculator above and pick 1, 2, 3 or 5 years to see the value and interest at the current rate. The rate stays fixed for the full term.

What is the post office FD rate of interest?

Each term has its own rate. The current rates for 1, 2, 3 and 5 year deposits are shown in the table on our post office schemes page and used in the calculator. Rates are reviewed every quarter.

Can I withdraw a post office fixed deposit early?

Not in the first 6 months. After that you can, but you get a lower rate. A 5 year deposit cannot be closed before 4 years, and closing it after 4 years earns only the savings account rate.

Does the post office FD calculator show monthly interest?

No. A post office time deposit pays interest once a year, not every month. If you need monthly income, use the post office MIS calculator instead.

Is post office FD interest tax free?

No. Interest on every term is taxable. Only the 5 year deposit amount qualifies for the 80C deduction, which is Section 123 under the new Income-tax Act, and only under the old tax regime.

Post Office FD Calculator: Time Deposit Returns for 1, 2, 3 and 5 Years

This post office FD calculator shows the value of a post office fixed deposit, called a time deposit (TD), at the end of its term. Enter the amount and choose 1, 2, 3 or 5 years. The calculator uses the current post office FD rate for that term. pincodeoffice.com is an independent site, not India Post. For official rules, see the India Post website.

How a post office fixed deposit works

An FD in post office is a one time deposit for a fixed term. You can pick 1, 2, 3 or 5 years. Each term has its own rate. The rate of interest on FD in the post office is fixed on the day you deposit and stays the same for the full term. Interest is worked out every quarter and paid once a year. The calculator shows the value as if the interest stays in the account. This post office fixed deposit calculator is for planning only. See the current FD rate in post office records for every term on our post office schemes page.

Post office FD rules

Minimum deposit: Rs 1,000, then multiples of Rs 100.
Maximum deposit: no upper limit.
Terms: 1, 2, 3 or 5 years.
Who can open: any adult, up to three adults jointly, or a guardian for a minor. A minor aged 10 or above can open one too.
Number of accounts: you can open as many as you like.
Interest payout: paid every year. You can have it credited to your post office savings account.

Premature withdrawal of a post office FD

These rules apply to deposits opened under the current rules. Older deposits may follow older rules, so check at your post office.

No deposit can be withdrawn in the first 6 months.
If you close any deposit after 6 months but before 1 year, you get only the post office savings account rate.
If you close a 2 or 3 year deposit after 1 year, interest for each completed year is paid at 2 percentage points below the rate for a deposit of that many years. For example, a 3 year deposit closed after 2 years gets the 2 year rate minus 2 points. The extra months earn the savings account rate.
A 5 year deposit cannot be closed before 4 years. If you close it after 4 years, you get the savings account rate.

Does a post office fixed deposit double in 5 years?

No. Many people search for a post office fixed deposit that doubles in 5 years, but no time deposit does that at today's rates. Put any amount in the calculator with a 5 year term and you will see the value grows well, but stays below double. The post office scheme that doubles money is Kisan Vikas Patra, and it takes longer than 5 years. See the KVP calculator on our post office schemes page.

Tax on post office FD interest

Only the 5 year deposit qualifies for a tax deduction under Section 80C (Section 123 under the new Income-tax Act). This is available only under the old tax regime, within the overall yearly limit of Rs 1.5 lakh. The interest on every term is taxable. TDS may be cut if your yearly interest crosses the limit set by the tax law. If your income is below the taxable limit, you can give Form 15G or 15H.

Worked example: 1 lakh FD interest in the post office

Post office fixed deposit interest is easiest to understand with real amounts.

Say you put Rs 1 lakh in a 5 year time deposit. Type 100000 as the amount and 5 as the term. The calculator shows the value after 5 years and the total interest at the current 5 year rate. Now change the term to 1 year. The interest is much smaller, and the 1 year rate is lower too. To see 3 lakh FD interest in post office terms, type 300000. The interest is three times the 1 lakh figure for the same term.

People often look for a post office FD calculator monthly interest option, but a time deposit pays interest once a year, not every month. To get money every month, the post office MIS calculator may suit you better.

How to open a fixed deposit in the post office

Go to a post office with Aadhaar, PAN and photos. Find the nearest one with our pincode of my location tool.
Fill the time deposit form. Choose the term and add a nominee.
Pay by cash or cheque. For large amounts, a cheque is easier.
Collect your account passbook or deposit receipt.

At maturity, you can take the money or ask to extend the deposit for the same term. Ask the post office for the extension rules for your term.