Post Office FD Calculator
Calculate maturity amount for India Post Time Deposit — Q1 FY 2026-27 rates
Post Office FD (Time Deposit) — 2026 Complete Guide
The Post Office Fixed Deposit, officially called the National Savings Time Deposit (NSTD), is one of India's oldest and safest investment products. Offered by India Post under the National Savings Institute (Ministry of Finance), it carries a full sovereign guarantee — meaning the Government of India guarantees every rupee of your principal and interest. This is fundamentally different from bank FDs, which are protected by DICGC insurance only up to ₹5 lakh per bank.
Current Post Office FD Rates (Q1 FY 2026-27: April–June 2026)
| Tenure | Interest Rate (p.a.) | Compounding | ₹1 Lakh Matures To |
|---|---|---|---|
| 1 Year | 6.9% | Quarterly | ≈ ₹1,07,122 |
| 2 Years | 7.0% | Quarterly | ≈ ₹1,14,888 |
| 3 Years | 7.1% | Quarterly | ≈ ₹1,23,478 |
| 5 Years | 7.5% | Quarterly | ≈ ₹1,44,995 |
Rates effective April 1, 2026 – June 30, 2026. Reviewed quarterly by Ministry of Finance.
Key Features
- Minimum deposit: ₹1,000 (no maximum limit)
- Fixed tenures only: 1, 2, 3, or 5 years (no custom days/months)
- Interest compounded quarterly, paid annually directly to savings account
- No senior citizen benefit: Unlike banks, Post Office offers the same rate to all age groups
- Sovereign guarantee: Entire investment protected, no upper limit
- Joint accounts: Can be opened with up to 3 adults
- Minor accounts: Guardians can open for children below 10; children above 10 can operate independently
Post Office FD vs Bank FD (2026)
| Factor | Post Office FD | Top Bank FD (SBI/HDFC) |
|---|---|---|
| 5-year rate (general) | 7.50% | 6.5%–7.0% |
| Senior citizen rate | Same as general (no benefit) | +0.25% to +0.75% extra |
| Insurance/guarantee | Sovereign (unlimited) | DICGC up to ₹5 lakh per bank |
| Tax-saving (80C) | Only 5-year TD qualifies | Only 5-year tax-saver FD |
| Premature withdrawal | Not before 6 months; penalty applies | Typically allowed with penalty |
| Loan against FD | Available after 6 months | Available; up to 90% of FD value |
Premature Withdrawal Rules
- Before 6 months: No withdrawal allowed at all
- After 6 months, before 1 year: Only post office savings rate (currently ~4%) paid — no FD rate benefit
- After 1 year (for 2/3-year TD): 1% less than the original contracted rate
- After 1 year (for 5-year TD): 1% less than the rate applicable to the actual period held
Tax Treatment
Interest earned on Post Office FDs is fully taxable as income from other sources. TDS (Tax Deducted at Source) applies when total interest across all post office savings accounts exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
The 5-year Post Office TD qualifies for deduction under Section 80C (up to ₹1.5 lakh) under the old tax regime.