Post Office Time Deposit Calculator
Post Office Time Deposit Calculator
The interest an India Post Time Deposit pays each year and in total on a 1, 2, 3 or 5-year account, after your tax and in today’s money.
Post Office TD interest
$1,00,000 for 5 years at 7.5%
Post Office Time Deposit interest
- P
- the deposit
- r
- the annual rate for the term, as a decimal, compounded each quarter within the year
- years
- 1, 2, 3 or 5; the deposit is repaid at the end
Worked example
$1,00,000 for 5 years at 7.5%
(1 + 0.075 ÷ 4)4 − 1 = 0.077136, a yield of 7.71% a year
Interest each year = 1,00,000 × 0.077136 = $7,714
Over 5 years: $38,568; the $1,00,000 comes back at the end
At a 30% tax rate: $5,400 a year, $26,998 in all
Everything received, in today's money at 4% inflation: $1,16,532
What 1,00,000 earns in each Time Deposit
| Term | Rate | Yield | Each year | Whole term |
|---|---|---|---|---|
| 1 year | 6.9% | 7.08% | $7,081 | $7,081 |
| 2 years | 7.0% | 7.19% | $7,186 | $14,372 |
| 3 years | 7.1% | 7.29% | $7,291 | $21,874 |
| 5 years | 7.5% | 7.71% | $7,714 | $38,568 |
How Post Office Time Deposit interest works
The National Savings Time Deposit, sold at post offices, is a fixed deposit with the government for one, two, three or five years. You make one deposit, from ₹1,000 upwards in multiples of ₹100, and the rate on the day you open the account is fixed for its whole term. For accounts opened in July–September 2026 the rates are 6.9%, 7.0%, 7.1% and 7.5% a year, unchanged from the previous quarter under the Ministry of Finance’s notification of 30 June 2026. The government reviews them every quarter; the next rates are due by the end of September, so if they have changed, enter the new rate.
Quarterly compounding, yearly payment. The scheme rules say interest is compounded quarterly and paid at the end of each year, and that interest left unclaimed earns nothing more. So each year pays the same amount: at 7.5%, $1,00,000 earns $7,714 a year, a yield of 7.71%, and $38,568 over five years. Some online calculators compound the interest over the whole five years and show $44,995; the rules do not pay that. If you want interest on your interest, you have to reinvest each payment yourself, for example in a recurring deposit.
Closing early. Nothing can be withdrawn in the first six months, and an account closed before maturity earns a reduced rate set in the scheme rules, so choose a term you can hold.
Tax and inflation. The interest is taxable in the year it is paid. The page takes your tax rate, if you enter one, from each year’s interest as it is paid; it does not know your slab. The five-year account has been eligible for the savings deduction under the old tax regime, but the rules change, so check the current position. At 4% inflation, everything the example pays back is worth $1,16,532 in today’s money.
To compare, the NSC calculator covers a five-year certificate that compounds and pays at the end, the Post Office MIS calculator one that pays monthly, and the FD calculator a bank deposit. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
What is the Post Office Time Deposit interest rate now?
For accounts opened in July–September 2026: 6.9% for 1 year, 7.0% for 2 years, 7.1% for 3 years and 7.5% for 5 years, compounded quarterly and paid yearly (Ministry of Finance, 30 June 2026).
How much interest will 1 lakh earn in a 5-year Post Office TD?
$7,714 a year at 7.5%, $38,568 over five years, before tax. The $1,00,000 is repaid at maturity.
Is Post Office TD interest compounded?
Within each year, yes, quarterly. But it is paid out at the end of each year, and unclaimed interest earns nothing more, so it does not compound across years.
Can I close a Post Office Time Deposit early?
Not in the first six months. After that you can, but at a reduced rate set by the scheme rules, so you get less than the rate shown here.
Related calculators
References
- Ministry of Finance (Department of Economic Affairs). National Savings Time Deposit Scheme, 2019, G.S.R. 922(E), Gazette of India, 12 December 2019: one deposit of at least ₹1,000 in multiples of ₹100; accounts of one, two, three and five years; interest compounded quarterly and payable at the end of each year, optionally to the holder’s savings account; no additional interest on interest due but not withdrawn; no withdrawal within six months; reduced interest on premature closure. https://www.indiapost.gov.in/documents/offerings/schemesandservices/posb/NationalSavingsTimeDepositScheme2019English.pdf
- Ministry of Finance (Department of Economic Affairs), notification of 30 June 2026 (office memorandum F.No.1/4/2019-NS): small savings rates for 1 July – 30 September 2026 unchanged from the previous quarter; Time Deposit 1 year 6.9%, 2 years 7.0%, 3 years 7.1%, 5 years 7.5%, compounded quarterly. As reported by Business Today and CAalley, 30 June 2026. Rates for October–December 2026 were not yet announced on 22 September 2026.
- Central-bank inflation targets used as default inflation by currency: Reserve Bank of India (4% CPI, flexible inflation targeting framework); U.S. Federal Reserve (2% PCE); European Central Bank (2%); Bank of England (2% CPI); Bank of Canada (2%); Reserve Bank of Australia (2–3%); Bangko Sentral ng Pilipinas (3% ± 1). Actual inflation often runs above target.