Post Office TD Calculator — Time Deposit
Calculate Post Office Time Deposit maturity amount with quarterly compounding breakdown, analyse tax impact on interest at your slab rate, and compare PO TD vs bank FD vs NSC. Updated with current rates for FY 2025-26.
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How to Use This Calculator
PO TD Maturity tab
Enter your deposit amount (e.g. ₹5,00,000) and select a tenure (1, 2, 3, or 5 years). The interest rate auto-fills based on your tenure selection. The calculator computes the maturity amount using quarterly compounding and shows a year-by-year interest breakdown. The 5-year PO TD qualifies for Section 80C deduction.
Tax Impact tab
Enter your deposit, tenure, and income tax slab. The calculator shows your gross interest, tax on interest at your slab rate, post-tax return, and effective post-tax interest rate. It also flags whether TDS will apply (interest > ₹40,000/year or ₹50,000 for senior citizens).
PO TD vs Bank FD vs NSC tab
Compare three popular fixed-income options side by side for the same deposit over 5 years: PO 5yr TD at 7.5%, SBI FD at ~6.5%, and NSC at 7.7%. The calculator shows maturity value, tax impact, and post-tax returns for each. NSC wins marginally on returns and gives better 80C treatment (accrued interest qualifies for 80C in years 1-4).
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The Formula
Post Office Time Deposits use quarterly compounding:
A = P × (1 + r/4)4n
Where:
P = Principal (deposit amount)
r = Annual interest rate (e.g. 7.5% = 0.075)
n = Tenure in years (1, 2, 3, or 5)
Quarter-by-Quarter Interest:
Quarterly rate = r / 4
Interestq = Balanceq-1 × (r/4)
Balanceq = Balanceq-1 + Interestq
Example (₹5,00,000 at 7.5% for 5 years):
Quarterly rate = 7.5% / 4 = 1.875%
Total quarters = 5 × 4 = 20
A = ₹5,00,000 × (1.01875)20
A = ₹5,00,000 × 1.44388 = ₹7,21,942
Total interest = ₹2,21,942
Effective Annual Rate (5yr TD at 7.5% nominal):
EAR = (1 + 0.075/4)4 - 1 = 7.71% effective
Interest is compounded quarterly (added to principal every 3 months) but the entire accumulated amount is paid only at maturity. No intermediate interest payments are made for PO Time Deposits.
Example
Meena — Salaried professional, deposits ₹5L in PO 5yr TD
Meena (40) is a government employee in the 30% tax bracket. She wants a safe, government-backed investment with a 5-year horizon and is comparing Post Office TD with bank FD and NSC.
Step 1: Maturity calculation
Step 2: Tax impact (30% slab)
Step 3: Comparison (5 years, 30% slab)
Meena gets ₹7,21,942 at maturity from PO TD. After 30% tax on interest, her post-tax return is ₹6,55,359. However, NSC gives slightly more (₹7,25,840) and has much better 80C treatment since accrued interest in years 1-4 also qualifies for 80C. The trade-off: NSC does not allow premature withdrawal, while PO TD allows exit after 6 months with a penalty.