Post Office Time Deposit (TD) Calculator 2025 – Interest Rates, Returns & Comparison

How to Use the Post Office Time Deposit (TD) Calculator?

To estimate your post office time deposit maturity amount:

1. Enter your principal deposit amount.

2. Enter interest rate applicable for the tenure for example if you are choosing 3 year tenure than interest applicable will be 7.1%

3. Select your tenure (1, 2, 3, or 5 years).

4. View your total interest earned, maturity value with interest and yearly interest which is credited annually to the account or can be transferred to a linked savings account upon request.

5. keep in mind that interest will be payable annually, No additional interest will be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.

So, go ahead and check the returns you would be getting using moneycontain Post Office Time Deposit (TD) Calculator below:

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What is a Post Office Time Deposit (TD)?

The Post Office Time Deposit (TD) scheme is a government-backed savings option offering attractive interest rates, flexible tenures, and guaranteed returns.

Ideal for risk-averse investors, this scheme also qualifies for tax benefits under Section 80C when invested for 5 years. Whether you’re looking to invest for 1, 2, 3, or 5 years, the TD account offers an easy and secure way to grow your savings.

Interest Rates For Post Office Time Deposit (TD) Account:

• Interest is payable annually but calculated quarterly.

• No additional interest is paid on accrued interest that is not withdrawn.

Minimum and Maximum Investment Limits

• Minimum Deposit: ₹1,000 (in multiples of ₹100)

• Maximum Limit: No upper cap

Account Tenure Options

• 1-Year

• 2-Year

• 3-Year

• 5-Year

Example: Post Office Time Deposit Calculation for 5 Years

Let’s assume you invest ₹1,00,000 in a 5-Year Post Office Time Deposit Account.

• Principal Amount: ₹1,00,000

• Tenure: 5 Years

• Interest Rate (as of Q1 2024): 7.5% per annum

• Interest Payable: Annually (but calculated quarterly)

Annual Interest Calculation:

Since interest is calculated quarterly and paid annually, the annual interest will be:

Yearly Interest = ₹1,00,000 × 7.5% = ₹7,500

The same amount is paid out each year (simple interest, no compounding unless reinvested). Here’s the yearly breakdown:

Note: If the annual interest is withdrawn and not reinvested, the maturity amount remains ₹1,00,000 (plus yearly interest payouts). If you reinvest the interest separately, your effective yield increases.

Total Earnings Over 5 Years:

• Total Interest Earned: ₹7,500 × 5 = ₹37,500

• Total Value at Maturity (without reinvesting interest):
  ₹1,00,000 (Principal) + ₹37,500 (Interest) = ₹1,37,500

Since the interest won’t be getting reinvested here’s the revised example showing compounded returns assuming the annual interest is reinvested separately each year at the same 7.5% interest rate (i.e., you reinvest the ₹7,500 each year in another instrument earning 7.5% annually).

While the Post Office TD itself doesn’t offer compound interest, this scenario reflects how you might grow your returns by actively reinvesting the annual payout.

Don’t worry, I have discussed below in the post other government backed investment instruments that you can use to reinvest the interest amount you would be getting from post office term deposit scheme.

Example: Post Office TD with Reinvestment of Interest

Initial Investment: ₹1,00,000

• Tenure: 5 Years

• Interest Rate: 7.5% p.a.

• Interest Paid Annually (Not Compounded in TD)

• Assumption: Annual interest ₹7,500 is reinvested at 7.5% per annum

Reinvestment Breakdown

Final Value at Maturity:

• Original Principal (TD) = ₹1,00,000

• Total Interest (if not reinvested) = ₹37,500

• Reinvestment Growth = ₹10,017 + ₹9,691 + ₹9,075 + ₹8,063 + ₹7,500 = ₹44,346

Total Value Including Reinvestment = ₹1,00,000 + ₹44,346 = ₹1,44,346

Summary Comparison

By reinvesting the annual interest, you gain ₹6,846 extra over 5 years compared to just withdrawing the interest.

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Key Features of Post Office Time Deposit Account

Eligibility: Who Can Open a TD Account?

• A single adult

• Joint Account (up to 3 adults – Joint A or B)

• Guardian on behalf of a minor or a person of unsound mind

• A minor above 10 years of age (in their own name)

Note: Any number of accounts can be opened.

Interest Payment and Withdrawal

• Interest is credited annually to the account or can be transferred to a linked savings account upon request.

• No compounding of interest for unpaid interest.

Maturity and Extension Rules

• Principal is repaid after completion of chosen tenure.

• Account extension allowed for the same tenure from date of maturity.

• Extension windows:

  • 1-Year TD: within 6 months of maturity

  • 2-Year TD: within 12 months of maturity

  • 3 & 5-Year TD: within 18 months of maturity

• Extension must be applied for using the prescribed form and passbook at the post office.

• Interest rate applicable on the date of maturity will be applied to the extended term.

Premature Closure

• No withdrawal allowed within 6 months from deposit date.

• Closure after 6 months but before 1 year: Savings Account interest rate applies.

• Closure after 1 year for 2/3/5-year TD:

  • Interest = Applicable TD rate – 2% for full years

  • Savings rate applies for incomplete year

• Requires submission of prescribed form and passbook.

Pledging/Transfer of TD Account

TD accounts can be pledged or transferred as security with the required documentation. Eligible pledgees include:

• President of India / State Governor

• RBI / Scheduled Banks

• Co-operative Banks & Societies

• Public or Private Corporations

• Housing Finance Companies

• Local Authorities / Government Companies

Tax Benefit

Investment in a 5-Year TD qualifies for deduction under Section 80C of the Income Tax Act, 1961, up to ₹1.5 lakh per year.

Comparison: Post Office TD vs PPF NSC SCSS KVP

Below is detailed comparison of the Post Office Time Deposit (TD) with other popular government-backed investment schemes in India. This helps you make informed decisions based on returns, risk, liquidity, and tax benefits.

Key Takeaways:

Post Office Time Deposit (TD)

• Flexible tenures (1–5 years)

• Annual payout; good for steady income

• Best suited for short- to medium-term goals

• Only 5-Year TD qualifies for 80C deduction

Public Provident Fund (PPF)

• Long-term wealth builder with tax-free returns

• 15-year lock-in, but partial withdrawals after 5 years

• Best for retirement planning

National Savings Certificate (NSC)

• Fixed 5-year investment with compounded returns

• Safe and suited for tax-saving with moderate returns

Senior Citizen Savings Scheme (SCSS)

• Designed for senior citizens (60+)

• Quarterly interest income

• Best for retirees needing regular payouts

• Attractive interest rate, currently highest among peers

Kisan Vikas Patra (KVP)

• Amount doubles in ~115 months

• No tax benefit, but useful for long-term corpus building

• Highly secure but less flexible due to lock-in

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Example Comparison: ₹1,00,000 Investment Over 5 Years

Note: These are approximate figures. Actual returns may vary slightly due to compounding frequency or reinvestment behavior.

Each of these schemes serves a different financial goal:

• TD: Ideal for short-term, low-risk savings.

• PPF & NSC: Best for tax-saving and long-term compounding.

• SCSS: Best regular income option for retirees.

• KVP: Good for long-term doubling of money but without tax benefits.

Conclusion

The Post Office Time Deposit scheme is an excellent option for conservative investors seeking guaranteed returns and flexible tenure options. With competitive interest rates, easy account opening procedures, and tax benefits for 5-year deposits, it remains a reliable part of many Indian households’ financial planning strategies.

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Disclaimer

The information provided on this page, including the Post Office Time Deposit (TD) Calculator, is for general informational and educational purposes only. While we strive to keep the content accurate and up-to-date, interest rates and policy details may change without prior notice. Please consult your nearest Post Office or visit the official India Post website for the latest updates.

The calculator results are estimates and should not be considered financial advice. Readers are encouraged to consult with a certified financial advisor before making any investment decisions. We are not affiliated with India Post or any government entity.