Investments
Post Office TD Calculator
Post Office Time Deposit — government-backed FD alternative. 1/2/3/5-year terms with 6.9%–7.5% rates. 5-year term is 80C eligible.
Inputs
Q1 FY 2026-27 · Quarterly compounded · Interest paid annually · No TDS but interest is taxable at slab rate
Year-by-year balance
Reinvested compounding · 80C deduction up to ₹1.5L on 5-year TD only
FAQs
What are Post Office Time Deposit rates 2026?
Q1 FY 2026-27: 1Y = 6.9%, 2Y = 7.0%, 3Y = 7.1%, 5Y = 7.5%. Government-notified quarterly. The 5-year term qualifies for Section 80C deduction (up to ₹1.5L).
Is Post Office TD safer than bank FD?
Both are safe. Post Office TD is sovereign-backed (Government of India guarantee on entire principal). Bank FDs have DICGC insurance only up to ₹5 lakh per depositor per bank. For amounts above ₹5L, Post Office TD has marginal edge on safety.
Is Post Office TD interest taxable?
Yes, fully taxable at your slab rate under "Income from Other Sources". TDS at 10% if total interest paid by post office exceeds ₹40,000/year (non-seniors) or ₹1,00,000/year (seniors — doubled from ₹50K in Budget 2025, effective FY 2025-26). Submit Form 15G/15H at the post office to skip TDS if your total income is below the basic exemption limit.
Can I break Post Office TD early?
Premature withdrawal allowed after 6 months. Within 1 year: only savings account rate (4%) on principal. After 1 year: 2% deduction from applicable rate. Plan tenure carefully.
Post Office TD vs Bank FD — what to choose?
Compare net rate. Top private banks (HDFC, ICICI) currently offer ~6.5–7% on 5-year FDs. Small finance banks (Equitas, AU) offer 7.5–8%. Post Office 5Y at 7.5% beats most public banks; ties with small finance banks but has sovereign guarantee.