Post Office Time Deposit Calculator — 6.9% to 7.5% (2026)
Post Office TDs (the post-office fixed deposit) pay 6.9%–7.5% depending on tenure — rates unchanged for Q2 FY 2026-27 (July 2026). Interest compounds quarterly; the 5-year TD is 80C-eligible.
How Post Office TD maturity is calculated
Interest compounds quarterly at the tenure's rate.
₹1,00,000 at 7.5% for 5 years = 1,00,000 × (1.01875)²⁰ = ₹1,44,995
Maturity of ₹1,00,000 by tenure (Q2 FY 2026-27 rates)
| Tenure | Rate | Maturity value | Interest earned |
|---|---|---|---|
| 1 year | 6.9% | ₹1,07,081 | ₹7,081 |
| 2 years | 7.0% | ₹1,14,888 | ₹14,888 |
| 3 years | 7.1% | ₹1,23,508 | ₹23,508 |
| 5 years | 7.5% | ₹1,44,995 | ₹44,995 |
A larger example: ₹5,00,000 in the 5-year TD at 7.5% grows to ₹7,24,974.
Post Office TD rules at a glance (July 2026)
| Feature | Detail |
|---|---|
| Rates | 1 yr 6.9% · 2 yr 7.0% · 3 yr 7.1% · 5 yr 7.5% (unchanged 9 quarters) |
| Compounding | Quarterly; interest payable annually |
| Investment | Minimum ₹1,000; no upper limit |
| Tax | Only the 5-year TD qualifies for 80C (old regime); interest taxable |
| Guarantee | Sovereign — Government of India small-savings scheme |
Frequently asked questions
What are Post Office Time Deposit rates in 2026?
For Q2 FY 2026-27 (July–September 2026): 1 year 6.9%, 2 years 7.0%, 3 years 7.1% and 5 years 7.5% — unchanged for the 9th consecutive quarter. Interest compounds quarterly and is paid annually.
How is Post Office TD maturity calculated?
Maturity = P × (1 + r/400)^(4t), where r is the annual rate and t the tenure in years, because interest compounds quarterly. ₹1,00,000 in a 5-year TD at 7.5% grows to ₹1,44,995.
Does the 5-year Post Office TD qualify for 80C?
Yes. Only the 5-year Time Deposit qualifies for Section 80C (old regime) up to ₹1.5 lakh, like a bank tax-saver FD. The 1, 2 and 3-year TDs have no tax benefit. Interest on all tenures is taxable.
Is a Post Office TD safer than a bank FD?
Post Office TDs carry a full sovereign guarantee from the Government of India with no upper cap, whereas bank deposits are insured by DICGC only up to ₹5 lakh per bank per depositor.
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