Post Office along with providing postal services and also offer FD (Fixed Deposit) Scheme known as Post Office Time Deposit. The good thing is the interest offered is generally higher than most government banks. We have designed a simple excel based Post Office FD calculator where you can input the investment amount, interest rate and it will calculate the interest earned and maturity value.
Post Office FD Calculator
Calculating Post Office FD interest payout or maturity value is pretty simple using the compound formula below:
Maturity Value = Principal * (1 + Interest Rate/4)^(Tenure in Years*4)
The above formula is for interest compounded quarterly.
Using this formula, if you invest Rs 1 Lakh at 7.8% interest for 5 years term, the maturity amount would be Rs 1,47,145 (1,00,000 * (1+7.8%/4)^(5*4))
Post Office FD Investment Rules:
The Post Office FD is available for 1, 2, 3 & 5 Years tenure only.
As with all other Small Saving Schemes like PPF, SCSS, Post Office FD rates are also declared every quarter. The Post Office FD Interest Rate for 2019 (Jan to Jun) are as follows (Check latest Post Office FD Interest Rate)
- 1 Year FD – 7.0%
- 2 Year FD – 7.0%
- 3 Year FD – 7.0%
- 5 Year FD – 7.8%
Interests are compounded quarterly .There is no additional interest for senior citizens.
The minimum investment amount is Rs 200 and there is no maximum investment limit.
There is no limit to the number of FD accounts you can create in post office. Essentially each FD created is like different account.
On maturity the account can be renewed with the same tenure as it was initially opened. The applicable interest rate would be as available on the day of maturity.
Premature withdrawal is allowed only after the completion of 6 months of the FD tenure. There may be penalty for the same.
Also Read: All you wanted to know about Post Office FD
Tax on Post Office FD Scheme:
The 5-year Post Office Fixed deposit is eligible for Tax benefit u/s 80C (up to Rs 1.5 Lakhs).
The interest earned is subject to TDS @ 10% if the annual interest paid is more than Rs 40,000 [Budget 2019]
You can fill Form 15G/H in case you are eligible to avoid TDS
The interest received is fully taxable at applicable marginal income tax rates.
Effective April 1, 2018 Interest income up to Rs 50,000 is exempted from tax for Senior citizens u/s 80TTB [Budget 2018]
Calculating maturity amount on Post Office FD is simple and can be done as explained above in the post. In case you have issue regarding the same just download simple excel based Post Office FD calculator.