Post Office Savings Calculator
Project the future value of your Post Office savings account. A secure, liquid, and tax-efficient way to park your funds.
Account Details
Minimum account balance is ₹500
Leave 0 if you don't add money regularly
Standard rate is 4.0% per annum
Final Account Balance
₹3,91,770
Total Principal Deposited
₹3,50,000
Total Interest Earned
₹41,770
Growth Over Time
Yearly Balance Statement
| Year | Total Deposits | Interest Earned | Closing Balance |
|---|---|---|---|
| Year 1 | ₹1,10,000 | ₹3,100 | ₹1,13,100 |
| Year 2 | ₹1,70,000 | ₹5,624 | ₹1,78,724 |
| Year 3 | ₹2,30,000 | ₹8,249 | ₹2,46,973 |
| Year 4 | ₹2,90,000 | ₹10,979 | ₹3,17,952 |
| Year 5 | ₹3,50,000 | ₹13,818 | ₹3,91,770 |
Tax Bonus: Under Section 10(15)(i) of the Income Tax Act, interest on Post Office Savings Account up to ₹3,500 (individual) and ₹7,000 (joint) is absolutely tax-free! This is over and above the regular ₹10,000 deduction under Section 80TTA.
Understanding The Post Office Savings Account
A Post Office Savings Account is similar to a regular savings account with a bank, but it's held with the Department of Posts. It is an excellent option for safe, guaranteed liquid savings, particularly favored in rural areas and by conservative investors.
Sovereign Guarantee
Unlike bank deposits which are insured only up to ₹5 Lakhs by DICGC, all deposits in India Post carry a sovereign guarantee from the Government of India, making them incredibly safe.
Calculation Rule
Interest is calculated on the minimum balance you hold between the 10th of the month and the last day of the month. Always deposit money before the 10th to earn interest for that month.
Frequently Asked Questions
What is the interest rate on Post Office Savings Account?
The current interest rate is 4.0% per annum. Unlike banks which may change rates frequently, the Post Office Savings Account rate has remained steady at 4.0% for several years.
How is the interest calculated?
Interest is calculated on the minimum balance between the 10th day and the end of the month. If you deposit money after the 10th, you will not earn interest on that amount for that specific month.
Is the interest earned taxable?
Yes, but there are exemptions. Under Section 80TTA of the Income Tax Act, interest earned across all savings accounts (including Post Office) up to ₹10,000 per year is tax-free. For senior citizens (Section 80TTB), this limit is ₹50,000. Additionally, under Section 10(15)(i), Post Office Savings Account interest up to ₹3,500 (individual account) and ₹7,000 (joint account) is completely tax-free!
What is the minimum and maximum balance limit?
The minimum amount to open and maintain an account is ₹500. There is no maximum limit for the balance you can hold.
When is the interest credited?
Interest is calculated periodically but is credited to the account once a year, at the end of the financial year (March 31st).