Post Office FD (Time Deposit) calculator
The Post Office Time Deposit is the post office’s fixed deposit, backed by the Government of India. It pays 6.9% to 7.5% a year depending on the term. Pick a term to see the interest.
Rules for FY 2026-27 · Checked 24 October 2026
For 5 years, then your ₹1,00,000 comes back. Effective yield 7.71% a year.
- You earn ₹38,568 in interest over 5 years.
- Interest is worked out every quarter but paid once a year, which turns 7.5% into 7.71%.
- The 5-year deposit counts for 80C in the old regime.
- Deposit returned₹1,00,000
- Interest₹38,568
- Interest each year
- ₹7,714
- Interest over 5 years
- ₹38,568
- Total received
- ₹1,38,568
Interest is taxed at your slab rate each year. It is paid out, not added to the deposit, so it does not compound unless you reinvest it.
Year-by-year table
| Year | Interest that year | Interest so far |
|---|---|---|
| 1 | ₹7,714 | ₹7,714 |
| 2 | ₹7,714 | ₹15,427 |
| 3 | ₹7,714 | ₹23,141 |
| 4 | ₹7,714 | ₹30,854 |
| 5 | ₹7,714 | ₹38,568 |
Rates and interest on ₹1 lakh
| Term | Rate | Interest a year | Total interest |
|---|---|---|---|
| 1 year | 6.9% | ₹7,081 | ₹7,081 |
| 2 years | 7% | ₹7,186 | ₹14,372 |
| 3 years | 7.1% | ₹7,291 | ₹21,874 |
| 5 years | 7.5% | ₹7,714 | ₹38,568 |
Rates for October to December 2026. The rate on the day you deposit stays for the whole term.
How the interest is paid
Interest is worked out every quarter but paid once a year, so the yearly payout is a little more than the headline rate. On the 5-year deposit, 7.5% becomes 7.71%: ₹7,714 a year on ₹1 lakh, or ₹38,568 over 5 years.
The interest is paid out, not added to the deposit, so it does not compound unless you reinvest it. It can go straight into your post office savings account. At maturity you can extend the deposit for the same term again.
You can deposit ₹1,000 or more, with no upper limit, and open as many accounts as you like, alone or jointly.
Closing early
- Nothing can be withdrawn in the first 6 months.
- Closed after 6 months but before a year, the deposit earns only the post office savings account rate.
- A 2 or 3-year deposit closed after a year earns 2% less than its rate.
- A 5-year deposit opened since November 2023 and closed after 4 years earns only the savings account rate.
Tax
Only the 5-year deposit counts for the 80C deduction in the old regime. Interest on every term is added to your income and taxed at your slab rate each year.
Compare with a bank FD: banks may pay more or less, and their deposits are insured up to ₹5 lakh, while post office deposits are backed by the government in full.
Frequently asked questions
What are the Post Office FD rates now?
For October to December 2026: 1 year 6.9%, 2 years 7%, 3 years 7.1% and 5 years 7.5%. They are reviewed every quarter.
Is Post Office FD interest compounded?
It is worked out quarterly but paid out once a year, so it does not build on itself unless you reinvest it.
Does the Post Office FD save tax?
Only the 5-year deposit, under 80C in the old regime. The interest is taxable whichever term you choose.
Can I break a Post Office FD early?
Not in the first 6 months. After that you can, but you earn a lower rate than the deposit’s own.
Sources: National Savings Institute (small savings rates), India Post, Department of Economic Affairs (small savings)