Post Office FD Interest Rates and Calculator

The Indian Post Office is one of the most trusted govt. undertaking department that offer attractive fixed deposit schemes and offering higher interest rates.  The maximum FD time is of 5 years that comes under PO scheme. They have over 15,800 outlets across the India and that’s why the people in the rural areas had enormous trust in the savings schemes of Indian postal department, recently the government of India has taken a number of steps to make the saving schemes in the urban areas very popular. As fixed deposits are important parts of national savings, the department of post even offers 0.2% more interest on its own schemes.

Post Office Fixed Deposit Schemes

With this, the schemes now attract high public interest and people all over India have begun to save through the fixed deposit schemes launched by the initiative of department of Post. As the interest rates of all banking sectors has been reduced, today the PO Schemes still considered as the safest investment option in India. With the far-spread network consisting of 1.5 lakh post-offices, the fixed deposit schemes have become prominent schemes in India.

Time period for Fixed Deposits 

The department of Post accepts fixed deposits for 1, 2,3, and 5 years. The customers could choose a time period as per their wish.


Please note that the Indian Post Office does not accept funds as fixed deposits from trust, regimental fund, and welfare fund. Only individual person or joint account can be opened.

Account Name

A person could decide to open a fixed deposit account in his name or in the names of two persons.

Interest Rate Calculation

For the fixed deposit schemes, interest payable is calculated in every quarter but department of post pays it annually.  Kindly use below given Post Office Interest Rate Calculator to find the exact returns on investement.

Nomination facility

As a fixed deposit holder, you could nominate a person for the receipt of deposits and accrued interests in case of your demise.

Account Opening

For having fixed deposits, you need to have an account in the post office.

Minimum and Maximum Investment Limit

The PO has set a minimum amount of FD i.e Rs 200 however there is no upper limit.  That means you can open a term deposit with Rs 200 and you can deposit in multiple thereafter.

Auto-renewal on maturity

Once the fixed deposits reach their maturity period, it could get auto renewed. For instance, if you have opened the FD for two years, it could get auto-renewed for another two years.

Facility from one post-office to another

You could opt to transfer the fixed deposit account from one post office to another.

Tax benefit for deposits over 5 years

The funds kept under 5 years of fixed deposit schemes qualify under tax benefit under Sec 80C of Income-tax Act, 1961.

Conversion of single to joint account

You could opt to convert the fixeddeposit account from single to joint.

Lock up period removed

As the norm existed the fixed deposit could not get closed before six months after opening, the government of India has removed it. As per the present norm, the fixed deposit could get closed before six months with applicable interest rate.

Post Office Term Deposit Interest Rates

  • For the one year of FD, the rate of interest is 8.40%.
  • For the 2 year of FD,  the rate of interest is 8.40%.
  • And same goes for 3 years of term deposit, the rate of interest is 8.40%.
  • However for the 5 year of FD, the PO is offering 8.50% interest rates.
Timing Interest Rates
1 year 7.0 %
2 year 7.1 %
3 year 7.3 %
5 year 7.8 %

Updated in Dec 2016

Now you know the interest rates offered by the Indian Post Office, use below tool to calculate based on investment amount:


How to apply for a FD account

You could straight go to the concerned post office and fill up the application form for opening the FD account. For this opening of a savings bank account is mandatory.

7 thoughts on “Post Office FD Interest Rates and Calculator

  1. Dear Sir,

    My name is AMJAD ALI from Deoband Saharanpur up persently working In Dubai.
    May i know, if i fixed deposit 2 lakh then how many years will be double my money.

    Thank You…

  2. If I fixed deposit 1 lakh then how many years will be double my money and how much tax of maturity time

  3. Respected sir, I am senior citizen and I did fixed deposit to five year..after fiftin year how many total money get me

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