Post Office Time Deposit Calculator 2026
Estimate maturity amount and quarterly compounded returns for 1, 2, 3, and 5-year Post Office Time Deposits (POTD). Compare sovereign yields and Section 194A TDS rules directly against commercial bank FDs.
Deposit Details
Deposit vs Interest Share
Year-by-Year Interest Breakdown
Quarterly Compounded| Year | Principal Balance (₹) | Interest Earned (₹) | Annual Payout (₹) |
|---|
Post Office Time Deposit vs Commercial Bank Fixed Deposits (2026)
Sovereign vs Bank ComparisonCompare sovereign 5-year Post Office TD against India's leading commercial banks across interest rates, Section 194A TDS rules, and guarantee backing.
| Institution & Scheme | 5-Year FD Interest Rate | 5-Yr Maturity on ₹1,00,000 | TDS at Source (Sec 194A) | Safety / Deposit Insurance | 80C Deduction |
|---|---|---|---|---|---|
| Post Office Time Deposit (POTD) Highest Sovereign Yield | 7.50% p.a. | ₹1,44,995 | No TDS at Source | 100% Sovereign (Unlimited) | Yes (₹1.5L) |
| State Bank of India (SBI 5-Yr FD) | 6.75% p.a. | ₹1,39,750 | 10% TDS if interest > ₹40k | DICGC up to ₹5 Lakh | Yes (5Y Tax Saver) |
| HDFC Bank (5-Yr FD) | 7.00% p.a. | ₹1,41,478 | 10% TDS if interest > ₹40k | DICGC up to ₹5 Lakh | Yes (5Y Tax Saver) |
| ICICI Bank (5-Yr FD) | 7.00% p.a. | ₹1,41,478 | 10% TDS if interest > ₹40k | DICGC up to ₹5 Lakh | Yes (5Y Tax Saver) |
Senior Citizen Tax Shield & Form 15H TDS Simulator (Age 60+)
Sec 80TTB ₹50k ProtectedEvaluate how Section 80TTB shields up to ₹50,000 annual interest from income tax and how POTD completely avoids Section 194A TDS deductions at source without needing annual Form 15H filings.
5-Year POTD (7.50%) vs Bank Tax-Saver FD (7.00%) Reinvestment Engine
Both 5-Year POTD and Bank Tax-Saver FDs qualify for Section 80C deductions up to ₹1.5 Lakh. However, POTD pays annual cash liquidity (reinvestable at 4%–7%) with 100% sovereign backing, whereas Bank FDs lock your capital cumulatively for 5 years with Section 194A TDS deductions.
How Post Office Time Deposit (POTD) Works
The Post Office Time Deposit Account (National Savings Time Deposit) is a sovereign-backed fixed-term savings scheme offered through India Post branches nationwide. It operates similarly to a bank Fixed Deposit (FD) but carries the absolute safety of the Government of India.
Key Features & Compounding Rules
- Quarterly Compounding: Interest is calculated quarterly using the formula \(A = P \times (1 + r/400)^{4t}\), but disbursed annually to your India Post Savings Account.
- Section 80C Benefit: The 5-year tenure qualifies for tax deduction up to ₹1.5 Lakh under Section 80C of the Income Tax Act.
- No Upper Limit: Minimum deposit is ₹1,000 (multiples of ₹100), with no maximum ceiling.
- Joint Accounts: Up to 3 adults can open a joint account.
Premature Closure Rules
- Before 6 Months: No premature withdrawal is permitted within 6 months of deposit.
- Between 6 Months to 1 Year: Account can be closed, but only Post Office Savings Account interest rate (4.0% p.a.) is payable.
- After 1 Year (for 2, 3, 5-yr TD): Interest paid is 2% lower than the applicable TD rate for the completed years.
- Pledging / Loan Facility: POTD accounts can be pledged as security against loans to nationalised banks and housing corporations.