Post Office Time Deposit
Calculate your annual interest payouts and overall returns for India Post Time Deposits (FDs).
Deposit Details
Min: ₹1000, Multiples of: ₹100
Standard rate for 5 years is 7.5%
Annual Interest Payout
₹7,714
EVERY YEARPrincipal (Returned at Maturity)
₹1,00,000
Overall Total Interest
₹38,568
Value Breakdown
Payout SchedulePaid into PO Savings
Tax Benefit Available! Because you selected the 5-Year tenure, your initial deposit of ₹1,00,000 qualifies for tax deduction under Section 80C.
Understanding Post Office Time Deposit
A Post Office Time Deposit (POTD) is the post office equivalent of a bank Fixed Deposit. It is one of the safest investment avenues in India as it comes with a sovereign guarantee from the government.
Payout Structure
Interest is mathematically compounded every quarter, but it is paid out annually to your linked post office savings account. It does not stay in the Time Deposit to compound year-over-year.
Tax Saving
Only the 5-Year Time Deposit offers tax benefits. If you invest in the 1, 2, or 3-year variants, your principal amount cannot be claimed under Section 80C.
Frequently Asked Questions
What is a Post Office Time Deposit (POTD)?
A Post Office Time Deposit is similar to a bank Fixed Deposit (FD). You invest a lump sum amount for a fixed tenure (1, 2, 3, or 5 years) and earn a guaranteed interest rate. The interest is compounded quarterly but paid out to your savings account annually.
Are there any tax benefits on POTD?
Yes, but only on the 5-Year Time Deposit. Investments made in the 5-Year POTD qualify for tax deduction under Section 80C up to ₹1.5 Lakhs per financial year. 1, 2, and 3-Year Time Deposits DO NOT offer Section 80C benefits.
Is the interest earned on POTD taxable?
Yes, the interest paid out annually is fully taxable. However, for senior citizens, interest income up to ₹50,000 from deposits (including Post Office) is exempt under Section 80TTB.
When do I get the interest money?
Even though interest is calculated and compounded every quarter, the actual money is transferred to your linked Post Office Savings Account once a year, on the anniversary of your deposit.
Can I prematurely withdraw my POTD?
Yes, premature withdrawal is allowed after 6 months. However, if withdrawn between 6 to 12 months, you will only receive the regular savings account interest rate (approx 4%), not the higher Time Deposit rate.