How to use the Post Office TD calculator
- Enter the amount you want to deposit (at least ₹1,000, in multiples of ₹100).
- Pick the term: 1, 2, 3 or 5 years. The rate for each term is shown on the button.
- Pick your income tax slab to see the interest after tax.
- Optionally, open “Close the TD early?” and choose after how many months you would close it.
- Read the yearly interest, the total you get and the table comparing all four terms.
Post Office TD interest formula
Yearly interest = deposit × ((1 + rate ÷ 400)⁴ − 1)
The rate is compounded every quarter, and the interest for the year is paid to you at the end of each year. It is not added to the deposit, so every year pays the same amount. Total interest = yearly interest × years. For ₹1,00,000 in the 5-year TD at 7.5%: ₹7,714 a year and ₹38,568 over 5 years.
Post Office TD interest on ₹1,00,000
Rates for October to December 2026. Total is the deposit plus all the yearly interest, before tax.
| Term | Rate | Effective yield | Interest a year | Total interest | Total you get |
|---|---|---|---|---|---|
| 1 year | 6.9% | 7.08% | ₹7,081 | ₹7,081 | ₹1,07,081 |
| 2 years | 7.0% | 7.19% | ₹7,186 | ₹14,372 | ₹1,14,372 |
| 3 years | 7.1% | 7.29% | ₹7,291 | ₹21,874 | ₹1,21,874 |
| 5 years | 7.5% | 7.71% | ₹7,714 | ₹38,568 | ₹1,38,568 |
Post Office FD total interest by amount
| Deposit | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| ₹10,000 | ₹708 | ₹1,437 | ₹2,187 | ₹3,857 |
| ₹50,000 | ₹3,540 | ₹7,186 | ₹10,937 | ₹19,284 |
| ₹1,00,000 | ₹7,081 | ₹14,372 | ₹21,874 | ₹38,568 |
| ₹5,00,000 | ₹35,403 | ₹71,859 | ₹1,09,369 | ₹1,92,840 |
| ₹10,00,000 | ₹70,806 | ₹1,43,718 | ₹2,18,739 | ₹3,85,679 |
Post Office TD premature closure interest
Interest kept on ₹1,00,000 in a 3-year TD, closed early, under the rules in force since November 2023:
| Closed after | How interest is worked out | Interest kept |
|---|---|---|
| 6 months | Savings account rate of 4% for 6 months | ₹2,000 |
| 12 months | 1-year TD rate less 2% (4.9%) for 1 year | ₹4,991 |
| 18 months | 1-year TD rate less 2% (4.9%) for 1 year, savings rate for 6 months | ₹6,991 |
| 24 months | 2-year TD rate less 2% (5.0%) for 2 years | ₹10,189 |
| 30 months | 2-year TD rate less 2% (5.0%) for 2 years, savings rate for 6 months | ₹12,189 |
A 5-year TD closed after 4 years earns the savings rate: about ₹16,000 on ₹1,00,000, against ₹30,854 at the full rate for the same 4 years.
Post Office TD rules at a glance
- Minimum ₹1,000, in multiples of ₹100, no maximum. Single or joint (up to 3 adults), or for a minor.
- The rate on the day you open the TD is fixed for the whole term.
- Interest can be credited to your post office savings account every year.
- Only the 5-year TD gives a deduction under Section 123 (earlier 80C), in the old regime. Interest is taxable at your slab rate.
- Compare with a bank deposit on the FD calculator.
Eligibility, how to open, extension, nominee and tax are explained in simple words on the Post Office Time Deposit page.
Frequently asked questions
How is Post Office TD interest calculated?
Interest is compounded every quarter but paid once a year. Yearly interest = deposit × ((1 + rate ÷ 400)⁴ − 1). For ₹1,00,000 in the 5-year TD at 7.5%, that is ₹7,714 a year, or ₹38,568 over 5 years.
How much will I get on ₹1 lakh in Post Office FD for 5 years?
₹7,714 every year, so ₹38,568 in total, plus your ₹1,00,000 back at the end: ₹1,38,568 in all, before tax.
Why do some calculators show a higher Post Office FD maturity?
Some calculators add the interest to the deposit every quarter for the whole term. The Post Office TD pays interest out every year, so it does not keep compounding across years. This calculator shows what the post office actually pays. You could earn a little more by reinvesting the yearly interest yourself.
What is the effective yield of a Post Office TD?
Because of quarterly compounding inside each year, 7.5% works out to 7.71% a year, and 6.9% to 7.08%.
What do I get if I close a Post Office TD early?
Nothing can be withdrawn in the first 6 months. Between 6 and 12 months you get the savings rate of 4%. A 2 or 3-year TD closed after 1 year earns the rate for the completed years less 2%. A 5-year TD can be closed only after 4 years, and then earns the savings rate. Interest already paid at the higher rate is taken back.
Is TDS deducted on Post Office TD interest?
Yes, 10% if your interest from the post office is more than ₹50,000 in a year (₹1,00,000 for senior citizens). If your tax is nil, give Form 121 (it replaced Forms 15G and 15H from April 2026).