Post Office Time Deposit (TD / FD) Interest Rates Calculator 2026: 1, 2, 3 & 5 Year Slabs

For investors seeking fixed returns comparable to commercial bank fixed deposits (FD) with 100% sovereign capital safety, the Post Office Time Deposit (POTD) Account is one of India’s most dependable savings options. Available across four flexible maturity tenures (1 year, 2 years, 3 years, and 5 years), it carries zero default risk and no upper investment ceiling.

Understanding the post office time deposit fd interest rates calculator enables depositors to maximize returns while claiming Section 80C deductions on the 5-year tenure.

Post Office Time Deposit (FD) Return Comparison Table

Deposit Amount (₹)	1-Year TD (6.9%)	2-Year TD (7.0%)	3-Year TD (7.1%)	5-Year TD (7.5%)
₹50,000	₹53,540	₹57,444	₹61,809	₹72,497
₹1,00,000	₹1,07,081	₹1,14,888	₹1,23,618	₹1,44,995
₹1,50,000 (80C Limit)	₹1,60,621	₹1,72,332	₹1,85,427	₹2,17,492
₹5,00,000	₹5,35,404	₹5,74,441	₹6,18,091	₹7,24,974

Key Account Rules & Tax Implications

• Section 80C Benefit: The 5-Year Time Deposit specifically qualifies for income tax deductions up to ₹1,50,000 per financial year under Section 80C. 1, 2, and 3-year tenures do not qualify for 80C deductions.
• Premature Closure (PMC): No premature withdrawal allowed before 6 months. If closed between 6 and 12 months, standard POSA savings rate (4.0%) is paid. If closed after 1 year, interest is paid at 2% below the contracted TD rate.
• Auto-Renewal: Accounts can be automatically renewed upon maturity for the same period at prevailing interest rates by submitting an instruction.

Frequently Asked Questions (FAQs)

1. Can I open a Post Office FD jointly with my spouse?

Yes. Up to three adults can open a Joint-A or Joint-B Time Deposit account with equal ownership rights.

2. Is TDS applicable on Post Office Time Deposit interest?

If interest across post office accounts exceeds ₹40,000 per year (₹50,000 for senior citizens), TDS applies under Section 194A unless Form 15G or 15H is submitted.

3. How is interest paid to the depositor?

Interest calculates on quarterly compounding terms, and the annual payout is credited automatically to your linked Post Office Savings Account (POSA) on an annual basis.