Yes. The 5-year TD qualifies for deduction under Section 80C (up to ₹1.5 lakh); the 1, 2 and 3-year terms do not.
Post Office FD Calculator
Post Office Time Deposit maturity for 1, 2, 3 and 5-year terms at the quarterly-notified rates, with the 5-year term's Section 80C benefit and a comparison with bank FDs.
Maturity amount
₹5,35,403
Total interest
₹35,403
Applicable rate
6.90%
1 year
TDS deducted (if PAN linked)
₹0
Interest after TDS
₹35,403
Year-wise balance
| Year | Principal | Interest earned | Value |
|---|---|---|---|
| 1 | ₹5,00,000 | ₹35,403 | ₹5,35,403 |
- Interest compounded quarterly.
- Premature withdrawal typically attracts a 0.5–1% penalty on the applicable rate.
Post Office Time Deposit rates as on 2026-07-01 for deposits below ₹3 crore; indicative and subject to revision by the bank. TDS applies when interest exceeds ₹50,000 a year (₹1,00,000 for senior citizens).
Post Office Time Deposit FD interest rates
| Tenure | General (p.a.) |
|---|---|
| 1 year | 6.90% |
| 2 years | 7.00% |
| 3 years | 7.10% |
| 5 years (80C eligible) | 7.50% |
Rates as on 2026-07-01; indicative for deposits below ₹3 crore. Verify on the bank's website before investing.
How the Post Office FD Calculator works
Post Office Time Deposit pays interest on fixed deposits by tenure slab. Cumulative deposits compound quarterly and pay everything at maturity; payout deposits credit simple interest to your account monthly or quarterly.
Senior citizens get an extra 0% p.a. on most tenures. Interest is taxable at your slab; the bank deducts 10% TDS once interest in a financial year crosses the threshold (20% without PAN), which you can avoid with Form 15G/15H if your total income is below the taxable limit.
Maturity = P × (1 + r/4)^(4 × years) (quarterly compounding)
- P
- deposit
- r
- annual rate
Worked example
- Deposit amount: ₹5,00,000
- Tenure: 1 year
- Depositor: General
- Interest: Cumulative
₹5 lakh for 1 year at 6.9% compounded quarterly matures at about ₹5,35,403. The effective yield is slightly above the card rate because of quarterly compounding.