Post Office FD Calculator
Post office time deposit interest and maturity value at the Oct-Dec 2026 rates for 1, 2, 3 and 5 years, with a bank FD comparison.
A ₹1 lakh 5-year post office time deposit at 7.5% pays ₹7,714 interest a year, and India Post's maturity value with interest left in is ₹1,44,995. Rates for Oct-Dec 2026: 1 year 6.9%, 2 year 7.0%, 3 year 7.1%, 5 year 7.5%.
A post office time deposit (TD) is the post office's fixed deposit, backed by the Government of India. Interest is calculated quarterly and paid once a year. The rate you lock in at opening applies for the whole term.
Post office FD rates, Oct-Dec 2026
| Term | Rate | Interest a year on ₹1 lakh | Maturity value if left in | Effective yield |
|---|---|---|---|---|
| 1 year | 6.9% | ₹7,081 | ₹1,07,081 | 7.08% |
| 2 years | 7.0% | ₹7,186 | ₹1,14,888 | 7.19% |
| 3 years | 7.1% | ₹7,291 | ₹1,23,508 | 7.29% |
| 5 years | 7.5% | ₹7,714 | ₹1,44,995 | 7.71% |
Rates are set every quarter by the Ministry of Finance; a deposit keeps the rate it was opened at. The effective yield includes the quarterly compounding.
How the interest is calculated
Interest compounds quarterly and is paid out yearly: each year's payout is P × ((1 + r/4)4 − 1). If the interest is left to compound, the maturity value is P × (1 + r/4)4n, the figure India Post publishes. Banks quote FDs the same way, so use the comparison box with a bank's rate for the same term.
Tax
Interest is taxed at your slab rate each year, whether you take it or leave it in. TDS applies when a year's interest exceeds ₹50,000 (₹1 lakh for senior citizens). Only the 5-year deposit qualifies for the section 80C deduction (old regime), up to ₹1.5 lakh.
Rules
Minimum ₹1,000, in multiples of ₹100; no maximum. Single or joint (up to three adults). Premature closure is not allowed in the first six months, and closing early earns a lower rate. On maturity the deposit can be extended for the same term.
For a monthly income instead, the post office Monthly Income Scheme pays interest every month; for long-term tax-free saving see the PPF calculator.
Key takeaways
- Rates for Oct-Dec 2026: 1y 6.9%, 2y 7.0%, 3y 7.1%, 5y 7.5%.
- Interest compounds quarterly and is paid yearly.
- Only the 5-year deposit gets 80C; interest is taxable every year.
Frequently asked questions
What is the post office FD interest rate?
For Oct-Dec 2026: 1 year 6.9%, 2 year 7.0%, 3 year 7.1%, 5 year 7.5%. The rate is fixed for the deposit's term.
What will ₹1 lakh in a post office FD for 5 years become?
₹1,44,995 if the interest is left to compound (India Post's maturity value), or ₹7,714 paid out every year plus your ₹1 lakh back.
Is post office FD interest compounded?
It is calculated quarterly and paid annually. Each year's payout is P × ((1 + r/4)^4 − 1).
Is post office FD better than a bank FD?
It is backed by the government and its 5-year rate is often higher than large banks'. Banks' deposits are insured up to ₹5 lakh. Compare the rates for the same term with the comparison box.
Is post office FD interest taxable?
Yes, at your slab rate. Only the 5-year deposit qualifies for 80C, on the amount deposited.
Can I close a post office FD early?
Not in the first six months; after that, at a reduced rate. Check the current rules at your post office.