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## Features of Post Office FD Calculator

Post office fixed deposit (POFD) is a fixed return savings scheme provided by India Post. The plan is available at all the Indian Post offices. You can open an FD account at your nearest post office branch and expect guaranteed returns. Here are some of the important features of POFD:

• The interest rate provided in POFD ranges between 6.9% and7.7% depending on the time period of investment you choose
• The interest is calculated quarterly but paid on an annual basis
• The investor can use the deposits made in POFD to avail a loan
• The POFD scheme offers  multiple tenure options, which ranges from one to five years
• FD scheme can be started with a minimum amount of Rs 1,000

The different rate of interest offered on different tenues are as follows:

Note: All interest rates shown above are as on January 3, 2024

## How to Calculate Interest on Post office FD?

Calculating returns from post office fixed deposits (POFDs) is done using the following formula:

M = P x (1 + i/4)^(n x 4)

In which,

M = Final value of the maturity

P = Principal invested amount

i = Interest rate offered in the FD

n = tenure of investment in years

Note: The above formula is for interest compounded quarterly.

## Example:

Let’s assume you want to invest Rs 2 lakh in the post office fixed deposit for a tenure of five years, on which you will get an interest rate of 7.7% per annum.

P = 2,00,000

i = 7.7

n = 5

Therefore, M = 2,00.000 x (1 + 7.7/4)^(5 x 4)

M = Rs 2,77,000

## How to use post office FD calculator

Individuals can use post office FD calculator in the following steps:

• Enter the amount, FD tenure and FD interest rates
• Click on ‘Calculate’
• The FD maturity amount and interest amount earned will be displayed

## Post Office FD Investment Rules

A few of the rules related to Post Office FD investment are as follows:

• Post Office Fixed Deposit (POFD)can be opened offline by cash or cheque.
• For deposits made via cheques, the date of realization of the cheque will be the opening date of the FD. The interest will be calculated from this particular date only
• Transfer from one post office to the other can be initiated easily
• While interest is compounded quarterly, payouts are done annually
• There are no special interest rates for senior citizens.
• Minors (over 10 years of age) can open accounts under valid guardianship. After attaining 18 years of age, minors should get the account converted in their name.
• The minimum investment is Rs 1,000 and there is no maximum investment limit.
• There is no restriction on the number of FD accounts an investor can open. Each FD is treated as a different account.
• A nominee to post office FD savings account can be added even after opening the account.
• Upon maturity, the post office FD can be renewed with the same tenure. The applicable interest rate would be the rate available on the day of maturity.
• Premature withdrawal facility is allowed only after completion of six months of the FD tenure. However, premature withdrawal attracts a penalty of 1%.
• After the post office FD matures, and the depositor doesn’t withdraw the amount, they are not entitled to extra interest after the tenure of the FD

## Benefits of Using Post Office Fixed Deposit Calculator

Some of the benefits of using the online FD calculator are as follows:

Accuracy in outcomes: An online Post Office fixed deposit calculator can save time and provide accurate results within a few seconds.

Helps to get customised results: Post Office FD provides various investment tenures with different interest rates. Using an FD calculator, you can adjust various parameters of FD investment such as principal amount, investment tenure, and rate of interest and get results as per your requirement. This permits you to plan ahead so that you can get the most out of your investment.

Free of cost: PO FD Calculator is readily accessible on various websites. You can use it multiple times without the need for any payments. Also, you do not require any login credentials. You can access it from anywhere anytime.

Prior to investing in Post Office fixed deposit scheme, it is always beneficial to evaluate what your investment will bring in. If you have been planning to invest in Post Office FD scheme, you can use the Upstox Post Office FD calculator and check out the interest amount you’d receive for a particular scheme.

## India Post FD Interest Rates

Post office FD interest rates from January 1, 2024 to March 31, 2024

Can a minor open a fixed deposit in his/her name?

Yes, a minor up to the age of over 10 years can open an FD account

How is a post office FD calculator different from normal FD calculator?

A post office FD calculator calculates the maturity value and interest amount for various fixed deposit amounts and tenures.

As the returns from post office FD is guaranteed, you can plan your investments based on this by using the post office FD calculator.

Similarly, an FD calculator can be used to estimate the interest and the amount that it will accrue at the time of maturity.

With an FD calculator, you can compare the maturity amount which you will be receiving by entering the interest rates offered by different lenders.

Is there a cap on the maximum investment amount?

No, there is no cap on the maximum investment amount.

Can I avail the benefit of Section 80C of Income Tax Act for opening a 5-year fixed deposit account?

Yes, for opening a 5-year fixed deposit account it is possible to avail the benefit of Section 80C of Income-Tax Act (ITA), 1961.

Can I save tax on post office FD returns?

No, the returns made from post office fixed deposit (POFD) returns are taxable as per the provisions given under the Indian-Tax Act (ITA), 1961.

Can I make premature withdrawal from my post office FD?

Yes, you can opt for premature withdrawal for your post office FD after completing a tenure of six months, though. In addition, in case you have opted for time deposit, the interest will be paid taking into account completed years.

Can I take out a loan on post office FD?

Yes, you can take out a loan on the Post Office FD. You can get a loan amount ranging  from 90-95% of the FD amount.

Can I get a monthly interest on FD in the post office?

No, post office interest rates are paid annually but it is compounded quarterly.

How many years will FD double in the post office?

By using the Rule of 72, you can calculate the number of years it will need to double post office FD. For example, in case he interest rate for your FD amount is 6.9%, it will take (72/6.9) 10.43 years to double your deposit amount.

Is Post Office FD Safe?

A post office FD is a government-backed investment scheme, therefore, it provides guaranteed returns. This is what makes the investment tool relatively safe avenue.

Which FD is the best bank or post office?

A POFD is a post office savings scheme that qualifies for tax-saving up to Rs 1.5 lakh under Section 80C of the Income-Tax Act (ITA), 1961. However, the five years deposit qualifies for tax-saving alone. In the case of Bank FD, only the Tax Saving Bank FD qualifies for tax saving under Section 80C of the ITA, 1961.

Post Office FDs (POFDs) have a fixed tenure of 1, 2, 3 and 5 years. The interest rate on POFD ranges between 6.90% and 7.50% per annum. The interest is directly paid at the time of maturity. Similarly, bank FDs have a flexible tenure from seven days to 10 years, and the interest rates range between 3% and 7.50%. Bank FDs also provide the option of interest payout to the depositors. Investors have the option to choose between a regular payout of interest or receive interest directly at maturity.

For investors, in case tax saving is the primary goal, then any of the FDs is ideal for investment. While the interest in POFD is higher, they cannot be a source of regular income. In case an investor wishes to receive a regular income, then they can go in for bank FDs.

What is Post Office Time Deposit?

Post Office Time Deposits, also known as National Savings Time Deposit Account, is one of the investment schemes offered by the India Post. The scheme is open to all individuals and is quite popular among rural and remote areas of the country. Deposits under post office time deposit schemes could have tenure of 1, 2, 3 or 5 years, and only one deposit can be made in one account

How much can be deposited in the post office?

An account in post office can be opened with minimum of Rs 1,000 and in multiple of Rs. 100, while there is no maximum limit for investment.

Does the post office deduct TDS on FD?

Yes, a 10% TDS is deducted on the interest earned of over Rs 40,000 in case an investor has submitted their PAN details. On the other hand, if PAN details are unavailable, then a 20% TDS is deducted.

What is the penalty for premature withdrawal of a fixed deposit in the post office?

In case you withdraw the FD after six months and before one year,  then you will receive the savings account interest rate on deposits. If you withdraw after one year, then interest shall be calculated at 2% less than a term deposit (TD) interest rate for completed years. The savings account interest rate will be applicable for the part period of less than one year.

Can I withdraw money from any post office in India?

Yes, it is possible for you to withdraw money from your account from any post office in India. A passbook, debit card, and cheque book will be provided to you against your savings PO account. In addition, by using the internet banking and mobile banking you can initiate multiple transfer and withdrawal or deposit requests.

Is FD better than NSC?

Fixed deposits (FDs) are investment tools that guarantee a return in the form of interest. Post office FDs and tax-saving bank FDs qualify for tax-saving under Section 80C of the Income-Tax Act (ITA), 1961. The interest rate for FDs range anywhere between 6.90% and 7.50% per annum. The tenure for FDs is quite flexible and ranges from seven days to 10 years. The interest is paid out regularly or at maturity depending on an investor’s choice.  National Savings Certificate (NSC) is a government-backed scheme that promotes savings and investment. The interest rate for NSC is 6.8%, and the tenure is fixed at five years. Investors cannot withdraw the money before maturity. Investment in NSC qualifies for tax saving under Section 80C of the Income Tax Act. The interest is paid directly at maturity. Also, the interest accrued is reinvested every year for four years, and it qualifies for tax saving as well.  Investors get higher interest in NSC than in FD. However, if the investor wants regular income, then FD is a better option. However, if the investor wants to invest for higher returns, then NSC is a better option.

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