Calculate Post Office Fixed Deposit maturity with annual compounding. Compare 2026 interest rates for senior citizens. See post-tax yields and DICGC coverage.
No deductions applicable. 7 slabs from Nil (up to Rs. 4L) to 30% (above Rs. 24L).
Maturity amount
₹6,15,720
after 3 years
Post-tax maturity
₹5,98,362
Total interest earned
₹1,15,720
Effective yield post-tax
6.17%
p.a.
Tax on interest
₹17,358
₹5,00,000 (81.2%)
₹98,362 (16.0%)
₹17,358 (2.8%)
Is your FD working as hard as it should?
Get your wealth check-up todayDisclaimer: This calculator assumes quarterly compounding (standard for Indian bank FDs). Post Office FDs compound annually; some NBFCs compound monthly. Tax is applied on total interest at maturity. In practice, TDS on FD interest is deducted annually (10% with PAN, 20% without). Senior citizen rates (additional 0.25-0.50%) are not differentiated. Non-cumulative FDs with periodic payouts are not modelled.
Drag the slider or type the lump sum you plan to deposit. Range is Rs. 10,000 to Rs. 10 crore.
Use the rate offered by your bank on its latest FD (Fixed Deposit) rate card. The calculator supports 3% to 9.5%.
Pick anywhere from 3 months to 10 years. If you need liquidity soon, Then keep tenure short to avoid premature withdrawal penalties.
Pick "New regime" if you do not claim deductions like 80C, HRA (House Rent Allowance), or home loan interest. Pick "Old regime" if you do.
Choose the slab that matches your annual taxable income (Nil, 5%, 10%, 15%, 20%, 25%, or 30%). This drives the TDS (Tax Deducted at Source) and post-tax yield calculation.
Check Maturity amount, Post-tax maturity, Total interest earned, Effective yield post-tax, and Tax on interest. The donut chart breaks down Principal vs Net interest vs Tax so you can see the real return after tax drag.
A Post Office Fixed Deposit (also called Post Office Savings Scheme or POSB FD) is a government-backed savings instrument where you deposit a lump sum with India Post for a fixed tenure (1–10 years) at a predetermined interest rate. At maturity, you receive your principal plus accumulated interest.
Post Office FDs are popular for three reasons:
Post Office FDs use annual compounding, unlike banks which use quarterly compounding. This is a key difference:
A = P × (1 + r/n)^(n × t)
Where
A = 5,00,000 × (1.067)^5 ≈ ₹6,83,500
Pre-tax interest: ₹1,83,500
Post-tax at 20% slab (New Regime): Tax: ₹1,83,500 × 20% = ₹36,700 Post-tax maturity: ₹6,46,800 Effective yield post-tax: 5.36% p.a.
Why annual compounding matters: Your interest compounds once per year (vs quarterly for banks). This is ~0.10–0.15% lower effective yield, but offset by Post Office's competitive headline rates.
Current as of May 2026. Verified against Department of Posts official rate notification. Post Office rates are notified centrally and uniform across all post offices nationwide.
| Tenure | Regular Rate | Senior Citizen Rate | Premium |
| 1 Year | 6.20% | 6.80% | +0.60% |
| 2 Years | 6.40% | 7.00% | +0.60% |
| 3 Years | 6.50% | 7.10% | +0.60% |
| 4 Years | 6.50% | 7.30% | +0.60% |
| 5 Years | 6.70% | 7.30% | +0.60% |
| 5-Year (Tax Saver) | 6.70% | 7.30% | +0.60% |
| 6 Years | 6.65% | 7.25% | +0.60% |
| 7 Years | 6.70% | 7.30% | +0.60% |
| 8 Years | 6.70% | 7.30% | +0.60% |
| 9 Years | 6.70% | 7.30% | +0.60% |
| 10 Years | 6.70% | 7.30% | +0.60% |
Highest Rate: 6.70% (5–10 years, general) / 7.30% (5–10 years, senior citizen)
Key Insight: Post Office rates plateau at 5 years (6.70%), meaning a 10-year commitment yields no additional interest vs a 5-year commitment. This incentivizes the 5-year ladder over lock-ins beyond 5Y.
Post Office's senior citizen premium is uniform +0.60% across all tenures (highest among major financial institutions). This generous premium reflects the government's commitment to pensioner savings.
| Senior Tenure | Rate | vs General |
| 1 Year | 6.80% | +0.60% |
| 2 Years | 7.00% | +0.60% |
| 5 Years | 7.30% | +0.60% |
| 10 Years | 7.30% | +0.60% |
Why this matters for seniors: At 7.30% for 5–10 years, Post Office beats SBI (7.50% with time limit) for perpetual senior access. A retired senior can roll over ₹5L every 5 years at 7.30%, creating a passive income stream.
Tax advantage for seniors: Section 80TTB allows ₹50,000 deduction on aggregate FD + savings account interest, reducing post-tax cost substantially.
Post Office's signature product: a variant where you earn monthly interest payouts instead of lump-sum at maturity.
| Feature | Details |
| Tenure | 5 years (fixed) |
| General Rate | 7.30% p.a. |
| Senior Rate | 7.90% p.a. (+0.60% premium) |
| Minimum | ₹1,500 (single), ₹3,000 (joint) |
| Maximum | ₹45 lakh (single) |
| Payout | Monthly via bank account |
Monthly interest on ₹5L @ 7.30%:
Monthly payout = (5,00,000 × 7.30%) ÷ 12 = ₹3,042/month
Use case: Retirees seeking monthly passive income. Better than drawing down principal from FD ladders.
Post Office FDs compete strategically with banks:
| Feature | Post Office FD | SBI FD |
| 5-Year Rate | 6.70% | 6.50% |
| Senior 5Y Rate | 7.30% | 7.50% |
| Compounding | Annual | Quarterly |
| DICGC Cover | None (Govt-backed) | ₹5L |
| Accessibility | 650K post offices | 22K branches |
| Premature Withdrawal | Allowed (penalty varies by timing) | 1% below rate |
| Tax Saver 80C | Yes, 5-year | Yes |
Verdict: Post Office leads on rates + safety + accessibility for 5Y+. Banks lead on short-term (1–2Y) liquidity.
Post Office rates are notified by the Department of Posts, typically on the 1st of each month, aligned with government fiscal cycles (April onwards for financial year).
The last upward revision: April 2026 when Post Office hiked 5-year rate from 6.50% to 6.70% (competitive counter to SBI, Canara moves).
Verify live rates: indiapost.gov.in/postal-services/financial-services
Best for: Senior citizens, conservative investors, 5+ year committed savings, those with limited access to banks.
Avoid: High-liquidity needs (premature withdrawal penalties), short-term goals (<2 years where banks offer better rates).
At 20% tax slab:
At 30% tax slab:
Senior at 15% slab on 7.30% rate:
| Approach | How It Works | Best For | Post-Tax Return |
| Post Office FD (5Y) | Lumpsum locked at 6.70%, annual CPD | Capital safety, 5+ years, seniors, tax saver | 5.36% (20% slab) |
| SBI FD (5Y) | Lumpsum locked at 6.50%, quarterly | Faster compounding, bank ecosystem | 4.55% (20% slab) |
| Liquid Fund | Overnight/money market, high liquidity | Emergency fund, short-term parking | 6.0–6.5% (20%) |
| Debt Mutual Fund | Diversified bond portfolio, managed by AMC | Tax-efficient (long-term), no lock-in | 5.2–6.2% (20%) |
| Post Office Savings Account | Monthly 4% interest | Liquidity + safety | 4.0% (slab-taxed) |
| Institution | 5-Year Rate | Senior Rate | Compounding | DICGC |
| Post Office | 6.70% | 7.30% | Annual | Govt-backed |
| SBI | 6.50% | 7.50% | Quarterly | ₹5L |
| Canara Bank | 6.00% | 6.50% | Quarterly | ₹5L |
| Axis | 6.45% | 7.20% | Quarterly | ₹5L |
| HDFC | 6.25% | 7.00% | Quarterly | ₹5L |
| Bank of Baroda | 6.50% | 6.50% | Quarterly | ₹5L |
Post Office wins on: Government backing + senior rates (except SBI 7.50%) + rural accessibility.
SBI wins on: Senior rates (7.50% = highest).
| Product | Best For | Rate |
| Regular FD | Lump-sum savers, long-term wealth | 6.70% (5Y) |
| Monthly Income Scheme (MIS) | Retirees, monthly cash flow | 7.30% (senior) |
| Recurring Deposit (RD) | Salary-savers, monthly contributions | 5.20–5.70% |
| Savings Account | Emergency liquidity, idle funds | 4.00% |
Recommendation: Use Regular FD for bulk savings (₹5L+), MIS for retiree income (₹3L+), RD for monthly savers (₹2,000–₹5,000/month).
India Post is a government-owned entity under the Department of Posts, Ministry of Communications. It operates the world's largest postal network with 650,000+ branches, reaching 99% of India's population.
Post Office Savings Schemes (POSS) are backed by the full faith and credit of the Government of India—no insurance limit, no depositor risk.
| Attribute | Value |
| Entity | Department of Posts, Ministry of Communications |
| Established | 1837 (current form); 1854 postal savings |
| Backing | Government of India (Sovereign) |
| Post Offices | 650,000+ (largest retail network) |
| Savings Products | FD, RD, MIS, Savings Account |
| Coverage | 99% of India's population |
| Deposit Safety | Government of India backing (100%) |
| Digital Platform | indiapost.gov.in (limited online) |
| Deposit Limit | FD: Unlimited; MIS: ₹45L (single) |
| Product | Description |
| Post Office Fixed Deposit (FD) | 1–10 year tenure, lump-sum at maturity, 6.20–6.70% |
| Post Office Monthly Income Scheme (MIS) | 5-year tenure, monthly interest payouts, 7.30% (senior) |
| Post Office Recurring Deposit (RD) | Monthly contributions, 5-year tenure, 5.20–5.70% |
| Post Office Savings Account (POSA) | Unlimited deposits/withdrawals, 4.00% interest |
| Senior Citizen Savings Scheme (SCSS) | 5-year tenure, quarterly payout, 7.40% (closed to new) |
| Kisan Vikas Patra (KVP) | 10-year tenure, doubles principal, ~7.60% effective |
Tenure 1 to 10 years. Maturity at end of tenure. Minimum ₹500 (post office branch) or ₹1,000 (online via post office website). Cumulative (interest reinvested) or non-cumulative (no interest payout during tenure). Premature withdrawal allowed after 1 year with penalty (rates decline from full rate based on holding period).
Key: No quarterly compounding like banks—annual. But rates are market-competitive (often higher on 5Y+).
5-year fixed tenure. Monthly interest payouts (0.60833% of principal per month). Minimum ₹1,500 (single), ₹3,000 (joint). Maximum ₹45 lakh (single), ₹90 lakh (joint). Rate: 7.30% general / 7.90% senior.
Use case: Retirees wanting predictable monthly cash flow. ₹10L investment @ 7.30% = ₹7,300/month income for 5 years.
Monthly contributions (₹100–unlimited). 5-year maturity. Interest accrues at 5.20–5.70% depending on contribution frequency. Useful for salary earners building savings discipline.
No tenure lock-in. Deposits and withdrawals anytime. 4.00% interest. ₹500 minimum opening balance. Ideal for parking emergency funds while earning better than bank savings accounts (typically 3.0–3.5%).
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Novelty Wealth helps you decide whether a Post Office FD is the right choice for your portfolio. Connect your existing savings and let NovaAI score the Post Office option against other investments (debt funds, RDs, bonds) at your tax slab and time horizon.
Get Your NovaAI ScoreAs of May 2026, Post Office rates range from 6.20% (1-year) to 6.70% (5–10 years). Senior citizens earn +0.60% premium across all tenures, reaching 7.30% on 5+ years. Verify at indiapost.gov.in.
Interest is fully taxable at your income-tax slab rate. TDS is deducted at 10% if annual FD interest exceeds ₹40,000 (₹50,000 for seniors). File Form 15G (under 60) or 15H (60+) to avoid TDS if total income is below exemption limit.
Yes. Premature withdrawal is allowed after 1 year. Penalty is interest rate reduction (varies by holding period): after 1–3 years, you lose interest; after 3+ years, reduced interest. No fixed 1% penalty like banks.
₹500 via post office branch, ₹1,000 if opening online via indiapost.gov.in portal. No maximum limit.
Yes. +0.60% premium uniformly across all tenures—highest senior premium among all banks (SBI +1.00% only on 5Y+). Post Office seniors earn 7.30% on any 5–10Y tenure, perpetually.
If you need monthly cash flow (like a retired person), yes. 7.30% (senior) or 7.30% (general) with guaranteed monthly payouts. If you don't need monthly income, regular FD is better (same rate, simpler).
Post Office (6.70%, govt-backed, no insurance limit) is safer. SBI (6.50%, insured up to ₹5L) is simpler. Post-tax yields are nearly identical at 20% slab (~5.3%). For seniors, Post Office wins (7.30% = same as SBI after 1% compounding difference).
No. Post Office FDs are 100% backed by Government of India directly—no insurance needed. This is actually safer than DICGC's ₹5L limit.
Yes. Create a 1Y/2Y/3Y/4Y/5Y ladder. Since rates plateau at 5Y (6.70%), laddering beyond 5Y (to 6Y–10Y) yields no additional interest. A 5-year ladder maximizes returns without lock-in beyond 5 years.
Online option (limited): indiapost.gov.in allows some transactions, but full KYC still requires branch visit.
Post Office compounds annually, banks compound quarterly. Annual compounding is ~0.10–0.15% lower effective yield. However, Post Office's higher headline rates (6.70% vs bank 6.45%) offset this, making them roughly equivalent on 5-year tenures.
Limited online options. Most Post Office FDs require branch visit for KYC. However, dedicated senior schemes (SCSS) have simpler processes. Recommend visiting nearest post office with proof of age (60+).