Post Office FD Calculator - Fixed Deposit Returns Calculator

Post Office FD Calculator

Why Choose Post Office FD?

Key Advantages

  • Guaranteed returns with government backing
  • Higher interest rates than savings accounts
  • Tax benefits under Section 80C
  • Flexible tenure options (1-5 years)
  • Loan facility against FD

Current Rates (2025)

Tenure Interest Rate
1 Year 6.9%
3 Years 7.2%
5 Years 7.5%

Understanding Post Office Fixed Deposits

Secure Savings with Government Backing

Post Office Fixed Deposits are one of the safest investment options in India, backed by the Government of India. They offer guaranteed returns and are particularly attractive for risk-averse investors.

Key Features:

  • Interest rates revised quarterly by the Ministry of Finance
  • Tax-saving FDs available with 5-year lock-in period
  • Auto-renewal facility available
  • Transferable between post offices nationwide

Tax Benefits Explained

Investments in 5-year Tax Saving FDs qualify for deductions under Section 80C up to ₹1.5 lakh. However, interest earned is taxable and TDS applies if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).

Pro Tip: Senior citizens (above 60 years) get an additional 0.5% interest on all FD tenures.

Comparing with Bank FDs

Feature Post Office FD Bank FD
Safety Government Backed DICCI Insured up to ₹5 lakh
Interest Rates Generally Higher Varies by Bank
Premature Withdrawal Allowed with penalty Varies by Bank

Frequently Asked Questions

Premature withdrawals allowed with 0.5% penalty on interest rate.

Interest is taxable under Income Tax Act. TDS deducted if interest exceeds ₹40,000 annually.

The minimum investment for a Post Office FD is ₹1,000.

The maximum tenure for a Post Office FD is 5 years.

Yes, Post Office FD can be opened online through the India Post website or mobile app.

The penalty for premature withdrawal is a reduction in interest by 0.5% from the applicable rate.

Yes, you can nominate a person at the time of opening the Post Office FD.

Yes, Post Office FDs are backed by the Government of India, making them a safe investment option.