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Post Office FD Calculator
Government-backed fixed deposits

Calculate maturity amount and interest on India Post Time Deposits. Updated with Q1 FY 2026-27 rates: 6.9% to 7.5% — backed by sovereign guarantee.

Govt guaranteedLatest ratesQuarterly compounding80C eligible (5yr)
INR
⚠ Same rate for all ages — Unlike bank FDs (which give 0.25–0.50% extra to seniors), Post Office Time Deposits have a uniform rate. Senior citizens (60+) can earn significantly more with SCSS at 8.2% p.a. — see the SCSS comparison section below.

?What is a Post Office FD?

A Post Office Fixed Deposit, officially called a "Time Deposit" under the India Post savings schemes, is a government-backed investment offered through India's network of over 1.55 lakh post office branches. Unlike bank FDs which are insured only up to ₹5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC), post office deposits carry a sovereign guarantee from the Government of India — meaning your principal and interest are 100% safe regardless of the amount deposited.

According to the Department of Posts, over 42 crore savings accounts are held across India Post branches, with post office small savings schemes collectively holding deposits worth ₹16.2 lakh crore as of March 2025. The interest rates are set quarterly by the Ministry of Finance based on government bond yields.

Post Office FD rates for Q1 FY 2026-27

Current rates effective April 1, 2026: 1-year tenure at 6.9%, 2-year at 7.0%, 3-year at 7.1%, and 5-year at 7.5%. Interest is compounded quarterly but paid annually. The 5-year FD qualifies for tax deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per year.

%Post Office FD rates 2026

TenureInterest rateCompoundingTax benefit
1 Year6.9%QuarterlyNo 80C
2 Years7.0%QuarterlyNo 80C
3 Years7.1%QuarterlyNo 80C
5 Years7.5%QuarterlySection 80C (up to ₹1.5L)

Source: Ministry of Finance notification dated March 31, 2026, for Q1 FY 2026-27 (April–June 2026). Rates are the same for all depositors — Post Office Time Deposits do not offer separate senior citizen rates, unlike bank FDs. Rates have remained unchanged since Q4 FY 2023-24. Note: Senior citizens seeking higher rates can invest in the Senior Citizens Savings Scheme (SCSS) offered through post offices at 8.2% p.a. with quarterly payouts.

vsPost Office FD vs bank FD

While bank FDs may offer slightly higher rates (SBI offers 6.8-7.0%, HDFC Bank 6.6-7.25% as of April 2026), the post office FD has two key advantages: sovereign guarantee (no ₹5 lakh DICGC insurance cap like banks) and Section 80C tax benefit on 5-year deposits. According to PaisaBazaar, unlike banks which offer 0.25-0.50% additional interest to senior citizens, Post Office Time Deposits do not have a separate senior citizen rate. However, senior citizens can invest in the Senior Citizens Savings Scheme (SCSS) through post offices at 8.2% p.a. with quarterly interest payouts — making it one of the best options for retirees.

Compare with bank FD rates

See how post office FD compares with HDFC, SBI, and other bank fixed deposits.

Compare HDFC FD rates →

Frequently asked questions

What is the post office FD rate in 2026?
Q1 FY 2026-27 rates: 1 year — 6.9%, 2 years — 7.0%, 3 years — 7.1%, 5 years — 7.5%. These rates are set quarterly by the Ministry of Finance and are effective April 1 to June 30, 2026.
Is post office FD safe?
Yes. Post Office FDs carry sovereign guarantee from the Government of India — the safest deposit option available. Unlike bank FDs insured only up to ₹5 lakh by DICGC, post office deposits have zero credit risk regardless of the amount.
Minimum deposit for post office FD?
Minimum deposit is ₹1,000 with no maximum limit. Deposits must be in multiples of ₹100. Accounts can be opened at any of India's 1.55 lakh post office branches with minimal documentation — Aadhaar and PAN are sufficient.
Is post office FD interest taxable?
Yes, interest is taxable per your income tax slab. TDS at 10% applies if annual interest exceeds ₹40,000 (₹50,000 for seniors) per Section 194A. However, 5-year FDs qualify for Section 80C deduction up to ₹1.5 lakh.
What is SCSS and is it better than Post Office FD for senior citizens?
Senior Citizens Savings Scheme (SCSS) is a government-backed scheme exclusively for those aged 60+ (55+ for VRS/superannuation retirees, 50+ for retired defence personnel). It offers 8.2% p.a. vs Post Office TD's 7.5% for 5 years. Unlike Post Office TD, SCSS pays interest quarterly — providing regular income. For eligible seniors, SCSS is generally the better choice: higher rate, quarterly income, Section 80C benefit up to ₹1.5 lakh, and the same sovereign guarantee. Maximum deposit is ₹30 lakh. The Post Office TD applies the same rate to all ages with no senior citizen bonus.
What is the SCSS interest rate for 2026?
SCSS interest rate for Q1 FY 2026-27 (April–June 2026) is 8.2% per annum, as notified by the Ministry of Finance on March 31, 2026. Interest is paid out quarterly — not compounded. For ₹5 lakh invested, quarterly payout is ₹10,250 and annual income is ₹41,000. At maturity (5 years), the full principal of ₹5 lakh is returned. The 8.2% rate has remained unchanged since April 2023.
Who is eligible for SCSS and where can I open an account?
SCSS eligibility: (1) Indian residents aged 60 years or above; (2) Retired employees aged 55–60 who retired under VRS or superannuation — must open within 1 month of receiving retirement benefits; (3) Retired defence personnel aged 50–60 — must open within 1 month of retirement. NRIs and HUFs are not eligible. SCSS can be opened at any post office branch or 28+ authorized banks including SBI, HDFC Bank, ICICI Bank, Axis Bank, and Bank of Baroda. A joint account is allowed only with the spouse; the ₹30 lakh limit applies to the first holder.
Can I have both a Post Office FD and SCSS account?
Yes. If you are a senior citizen, you can hold both a Post Office Time Deposit and an SCSS account simultaneously. A common strategy is to invest up to ₹30 lakh in SCSS (maximum limit) for the higher 8.2% quarterly income, and invest the remaining amount in Post Office TD for longer tenures or lump-sum growth via quarterly compounding. Both are backed by the Government of India with sovereign guarantee. Both also qualify for Section 80C deduction (SCSS — all deposits; Post Office TD — only 5-year deposits).