Run a conservative scenario before relying on the headline result.
Post Office Time Deposit Calculator
Compare Post Office time-deposit maturity by tenure. Adjust the assumptions, inspect the chart and read the complete guide below.
02 Your projection
Projected value₹7.18 LUpdates instantly as you edit
Total invested / base₹5.00 L
Growth / cost₹2.18 L
Assumed annual rate7.50%
Projection journeyHover to inspect a year
This is an educational projection based on the assumptions entered above.
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Five smart nudges
Use the result with context.
Review the assumptions after any major change in income, rates or goals.
Keep emergency money separate from long-term investments.
Account for taxes, charges and inflation when comparing options.
Use this estimate to ask better questions, not as a return promise.
Understanding Post Office TD in India
Editorially reviewed 12 July 2026 · Rules and assumptions can change
Post Office Time Deposit mechanics
A Post Office Time Deposit is available in prescribed one-, two-, three- and five-year tenures, with the rate linked to the chosen term and issue date. Interest is calculated quarterly and paid annually under the product rules, while this calculator currently uses annual compounding to create a simple maturity comparison. That simplification can differ from official account figures, especially when annual interest is withdrawn rather than retained.
The calculator’s default five-year assumption should not be used to describe every Time Deposit. A one-year TD and five-year TD can carry different notified rates and solve different liquidity needs.
Worked five-year TD example
At an illustrative 7.5%, ₹5 lakh compounded annually for five years becomes about ₹7.18 lakh before tax. Official interest mechanics and annual payout handling can produce a different account statement. If interest is paid out and spent each year, principal does not compound to that figure.
Match the tenure to the goal. Rolling a one-year deposit five times introduces reinvestment risk; locking a five-year deposit for an expense due in two years introduces premature-closure risk.
Tax treatment and five-year deduction
Interest is generally taxable. A qualifying five-year Time Deposit may be eligible within the applicable section 80C limit under the old tax regime, while shorter tenures do not receive the same treatment merely because they are Post Office deposits. The calculator shows pre-tax growth and does not know the chosen tax regime.
Tax deduction on principal and taxation of interest are separate questions. Compare after-tax maturity with NSC, FD and other fixed-income options using the investor’s own rate.
Premature withdrawal rules
India Post guidance permits TD closure after six months, with the payable interest determined by timing and prescribed reductions. The smooth value on the chart is not an early-closure quote. Closing between six and twelve months may receive savings-account treatment, while later closure can involve a reduced applicable rate.
Use a deposit ladder and maintain liquid reserves rather than depending on premature closure. Record each deposit’s maturity separately so the family knows when money becomes available.
TD versus NSC and bank FD
A five-year TD and NSC share sovereign small-savings backing but differ in interest payment, tax mechanics and account form. A bank FD offers institutional choice and payout options but introduces bank concentration and deposit-insurance limits. Compare the same tenure and post-tax cash flow.
If annual income is required, model the annual payout instead of compounding it. If maturity growth is required, confirm whether the product operationally reinvests interest in the way the calculator assumes.
Time Deposit checklist
Select the actual tenure, verify its notified rate, interest-payment instruction, holder, nominee, tax deduction eligibility and premature-closure schedule. Avoid using the five-year rate for a shorter account.
Use separate scenarios for each ladder rung and document the destination of annual interest. Recalculate when a deposit matures because the renewal rate may be different.
Official sources used for this guide
- Department of Economic Affairs — current small-savings rates ↗
- India Post — Post Office savings schemes and closure rules ↗
Rates, thresholds and rules can change after the review date. Check the linked authority and the provider’s current documents before acting.
Post Office TD calculator FAQs
Are all Post Office TD tenures paid the same rate?
No. One-, two-, three- and five-year deposits can have different notified rates.
Does this calculator exactly match the post-office account?
It uses annual compounding for comparison, while official TD interest is calculated and paid according to prescribed product rules.
Is every TD eligible for section 80C?
No. The qualifying five-year deposit may be eligible under applicable old-regime rules; shorter tenures are different.
Can a TD be closed early?
Yes, after the prescribed minimum period, but reduced interest rules can apply.
Is a Post Office TD safer than a bank FD?
They have different backing and operational frameworks. Compare sovereign small-savings terms with bank credit concentration and applicable deposit insurance.