Post Office FD & RD Calculator – Check Rate & Monthly Interest

In the modern era, Post Office Bank has rapidly gained popularity as a trusted financial institution. It ensures the complete safety of customers’ savings while also offering various schemes to help them grow their investments. One of the most reliable investment options provided by the Post Office is the Fixed Deposit (FD), commonly referred to as Time Deposit in postal banking terms. Additionally, the Recurring Deposit (RD) Scheme is another beneficial option that allows individuals to save systematically while earning attractive interest rates. With its secure and government-backed schemes, Post Office Bank continues to be a preferred choice for risk-free savings and investment.

Post Office Bank offers Fixed Deposit (FD) and Recurring Deposit (RD) schemes with attractive interest rates, making them reliable investment options for individuals looking for secure and guaranteed returns.

What is a Post Office Fixed Deposit (FD) Calculator?

A Post Office Fixed Deposit (FD) Calculator is a useful tool that helps users estimate the maturity amount and interest earned on their fixed deposits in post offices over a specific period. This tool simplifies financial planning by providing accurate calculations based on deposit tenure and applicable interest rates.

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A Post Office Fixed Deposit, also known as a Time Deposit (TD) or Term Deposit, is a government-backed savings scheme offered by India Post. It is a secure investment option that provides fixed interest rates for different tenures, making it an attractive choice for risk-averse investors.

The tool follows the compound interest formula, but since interest is calculated and added to the principal every 3 months (quarterly compounding), the formula used is:

A = P × (1 + (r / 4))^{(4 × t)}

Where:

A = Final Amount

P = Initial Principal

r = Annual Interest Rate (decimal)

t = Number of Years

4 = Since interest is compounded every 3 months (quarterly), there are 4 compounding periods in a year

How to Use the Post Office Fixed Deposit Calculator

Step 1: Enter the Principal Amount

The first step is to input the principal amount in the designated box. This is the initial amount you want to invest in a fixed deposit. Make sure you enter the correct value to get accurate results.

Step 2: Enter the Interest Rate

In the second box, enter the current interest rate applicable for Post Office fixed deposits. As of now, the

interest rate for a 1-year FD is 6.9%.

interest rate for a 1-year FD is 7%.

interest rate for a 1-year FD is 7.1%.

interest rate for a 1-year FD is 7.5%.

However, interest rates change over time, so check the latest rates before proceeding.

Step 3: Enter the Tenure (Years)

Next, enter the investment duration (tenure) in years. The longer the tenure, the higher the interest earned on your deposit. Make sure to choose the tenure based on your financial goals.

Step 4: Click on the "Calculate" Button

Once you have entered all the details, click on the "Calculate" button. The calculator will instantly display the maturity amount, including both the principal and the interest earned over the selected period.

Example: 1-Year Post Office Fixed Deposit Calculation

Let's understand how a Post Office Fixed Deposit (FD) for 1 year works with quarterly compounding using an example.

Example Details:

Principal Amount: ₹50,000

Interest Rate: 6.9% per annum

Tenure: 1 year

Compounding Frequency: Every 3 months (Quarterly)

Step-by-Step Calculation Process

Step 1: First 3 Months (Quarter 1)

You deposit ₹50,000 in the post office FD.

After 3 months, interest is added to your principal.

Now, your total amount increases slightly.

Step 2: Next 3 Months (Quarter 2)

The interest is calculated again on the new amount (previous principal + added interest).

Your deposit grows further as the interest is reinvested.

Step 3: Next 3 Months (Quarter 3)

Interest is calculated again on the latest amount.

Your savings continue to grow due to compounding.

Step 4: Last 3 Months (Quarter 4)

Interest is applied for the final time in the year.

At the end of 1 year, you get your maturity amount, which includes both principal and interest earned.

Final Maturity Amount (Without Formula)

After 1 year, the total amount you receive will be slightly more than ₹53,500 due to quarterly compounding. The exact amount may vary slightly based on the latest interest rate updates.

Post Office FD Law for Premature Period: Rules and Penalty on Early Withdrawal

Fixed Deposits (FDs) in post offices, also known as Post Office Time Deposits (POTD), come with specific rules regarding premature withdrawal. If you are planning to invest in a 1-year, 2-year, 3-year, or 5-year FD, it is important to understand the conditions and penalties associated with early closure.

Premature Withdrawal Rules for Post Office FD

No Closure Before 6 Months

If you invest in Post Office FD (1-year, 2-year, 3-year, ), you cannot close it before completing 6 months from the date of deposit.

Withdrawal Between 6 Months and 1 Year

If you withdraw your FD after 6 months but before 1 year, you will not receive the FD interest rate.

Instead, your deposit will earn interest at the rate applicable to Post Office Savings Account, which is generally lower than FD rates.

Premature Closure for 2-Year and 3-Year FD

If you withdraw a 2-year or 3-year FD after 1 year, the interest rate will be 2% lower than the applicable FD rate for the tenure completed.

Example: If the FD rate is 7.1%, you will receive interest at 5.1% for the period the FD remained active.

Premature Closure for 5-Year FD

A 5-year FD can be closed only after 4 years from the date of deposit.

In this case, the interest will be paid at the Post Office Savings Account rate instead of the fixed deposit rate.

Is Post Office Fixed Deposit a Time Deposit?

Yes, Post Office Time Deposit (TD) is what many people refer to as a Fixed Deposit (FD). While banks call it FD, the Post Office officially names it Time Deposit (TD) or Term Deposit.

The key reason for this distinction is that in a Post Office Time Deposit, interest is added to the principal every three months, whereas in bank FDs, the interest payout varies based on the chosen scheme.

However, due to the popularity of the term Fixed Deposit (FD), most people search for "Post Office FD" instead of "Time Deposit," even though the correct term is Time Deposit.

Post Office Loan Against FD: How to Get a Loan on Your Fixed Deposit

Many people invest in fixed deposits (FDs) at the post office due to their safety and assured returns. However, if you need urgent funds, you might wonder whether you can take a loan against your post office FD. While a fixed deposit can be used as collateral for a loan, the post office itself does not provide this facility. Instead, you will need to approach a bank or a non-banking financial company (NBFC) that accepts post office FDs as security for a loan.

Financial institutions that offer loans against FD provide this facility as a secured loan, meaning your fixed deposit will act as collateral. The loan amount is typically a percentage of the FD value, often ranging from 70% to 90%. The interest rate on such loans is usually lower than personal loans since it is backed by a secured asset. However, it’s important to check with different banks and NBFCs, as not all financial institutions accept post office FDs for loans. Before applying, compare interest rates, processing fees, and loan terms to choose the best option for your financial needs.

Post Office FD Rate of Interest and Taxes 2025

In banking terms, a Fixed Deposit (FD) in the Post Office is known as a Time Deposit. It is a secure investment option with different maturity periods of 1, 2, 3, and 5 years, each having a different rate of interest. As per the current rates, the interest for 1 year is 6.9%, 2 years is 7%, 3 years is 7.1%, and 5 years is 7.5%. These interest rates are subject to change as per government policies. The interest on Post Office FD is compounded quarterly, meaning it is calculated every three months, which helps in earning higher returns on your investment. This makes it a great option for individuals looking for a safe and guaranteed return on their savings.

Tax Rules on Post Office FD

Post Office FD does not have a direct tax deduction, meaning your principal amount is not taxed. However, the interest earned from the FD is added to your total income and is taxable as per your income tax slab. If your total annual income falls under the taxable bracket, you are required to pay tax on the interest earned.

One major tax benefit is available on 5-year Post Office FD under Section 80C of the Income Tax Act. If you invest in a 5-year FD, you can claim a tax deduction of up to ₹1.5 lakh from your total taxable income, helping you save on taxes. This makes the 5-year FD a good tax-saving investment option while also offering stable returns.

What is Post Office rd (Recurring Deposit) 2025

Post Office Recurring Deposit (RD) is a secure and reliable investment scheme run by the Indian Postal Service. It is designed for individuals who want to save systematically and earn stable returns over a fixed tenure. Under this scheme, users deposit a fixed amount every month, and the post office provides a guaranteed interest rate on the accumulated amount. The interest is compounded quarterly, which enhances the overall returns for the investor.

One of the key features of the Post Office RD is its tenure, which is set at five years. This makes it an excellent option for medium-term financial planning. As of 2025, the interest rate on Post Office RD stands at 6.7% per annum, making it a competitive and attractive investment choice. Since the interest is compounded every three months, investors can benefit from accelerated growth in their savings.

Additionally, the Post Office RD scheme is backed by the Government of India, ensuring the safety of your investment. It is an ideal choice for individuals looking for a risk-free investment with decent returns.

Calculate Post Office Recurring Deposit (RD) 2025

If you are planning to invest in a Post Office RD in 2025, it is essential to calculate your returns beforehand to make an informed financial decision. With the Post Office RD Calculator Tool, you can effortlessly compute your maturity amount by entering key details such as the deposit amount, current RD interest rate, and tenure. This tool provides accurate results instantly, helping you plan your savings effectively.

To calculate your Post Office RD, start by entering the monthly deposit amount you wish to invest. Next, input the current interest rate applicable for Post Office RD in 2025. The standard tenure for RD in the Post Office is 5 years (60 months), but you may choose to extend it as per your financial goals. Once all the details are filled in, click on the "Calculate" button to see the final maturity amount you will receive at the end of the tenure. This easy-to-use RD calculator ensures that you get precise results, allowing you to strategize your savings and maximize your returns. Start planning today and secure your future with the Post Office Recurring Deposit scheme!

Calculate Post Office RD Scheme – ₹1,000 Per Month

If you invest ₹1,000 per month in the Post Office Recurring Deposit (RD) scheme, your savings will grow steadily over time. Over a 5-year tenure (60 months), your total deposited amount will be ₹60,000. With the current interest rate of 6.7% per annum (compounded quarterly), you will earn a total interest of ₹11,365.83. This means that at the end of 5 years, your maturity amount will be ₹71,365.83.

To get precise calculations based on different deposit amounts or interest rate changes, you can use the Post Office RD Calculator Tool provided above. Simply enter your monthly investment, the applicable interest rate, and tenure to instantly calculate your maturity value. This tool helps you plan your finances effectively and make informed investment decisions. Start saving today and secure your financial future with the Post Office RD Scheme!

Post Office RD Interest Rate 2025

As of 2025, the Post Office Recurring Deposit (RD) interest rate stands at 6.7% per annum, making it an attractive savings option for risk-free investment. The interest is compounded quarterly, ensuring that your savings grow steadily over time. This government-backed scheme is ideal for individuals looking for a disciplined saving approach with assured returns.

The maturity period for a Post Office RD is fixed at 5 years (60 months). Premature withdrawal is not allowed before the completion of the tenure, except under specific conditions. If you choose to close your RD account before maturity, it will be considered a pre-mature withdrawal, and different rules will apply based on the duration of your deposit. To maximize your savings, it is advisable to continue investing until the full tenure. With its fixed interest rate and government security, Post Office RD remains a preferred choice for those seeking a stable investment plan in 2025.

Post Office RD Premature Closure Terms and Law

The Post Office Recurring Deposit (RD) scheme is designed for disciplined savings with a fixed tenure of 5 years (60 months). However, if you need to close your RD account before maturity, certain rules and conditions apply. According to Post Office RD premature closure laws, you cannot withdraw your RD before completing 3 years (36 months). If you try to close it before this period, the request will not be processed.

If you close your Post Office RD account after 3 years but before 5 years, the interest rate applicable will not be the RD rate but instead the Post Office Savings Account interest rate, which is lower. This means you will not receive the full RD benefits if you opt for premature closure. However, after completing 5 years, you have the option to either withdraw the full maturity amount or continue the RD for an extended period at the same interest rate. If you choose to extend it, you can withdraw anytime later without any penalty or loss. Understanding these premature closure terms can help you plan your savings effectively and avoid unnecessary financial loss.