Post Office FD Calculator 2022

About Post Office Fixed Deposit Scheme

In post office fixed deposit scheme, the subscribers need to contribute for a specific tenure and fixed interest rate. The higher the investment tenure will be the higher interest an individual will be able to earn on the contribution made towards the scheme.

Post Office Fixed Deposit Interest Rate 2022

The Post Office FD account can be opened for tenure of 1, 2, 3 and 5 years with different interest rates of specific year. The interest applicable on Post Office FD is subject to TDS.  Let’s take a look at the post office FD interest rates.

How to Calculate Interest on Post Office Fixed Deposit?

 By using Post Office FD calculator an individual can compute the interest payout easily. To calculate the interest amount, the individual will need to use the formula of compound interest.

Maturity Amount = Principal * ( 1+Interest Rate /4)^(n*4) 

- Where n is the number of years and the interest rate should be the annual rate. Also, the above formula is for interest compounded quarterly.

Let’s understand with an example:

Suppose a person has deposited 1 lakh at 6.8% interest for 5 years, the maturity amount would be

Maturity Amount= 100000*(1+.068/4) (5*4)

Maturity Amount=  Rs.1,40,360

Interest Gained = Rs. 40,360

The interest on post office FD is computed quarterly but paid annually. At the time of redemption the accumulated sum will be given to the individual via cheque. The interest earned is fully taxable. It is added to the annual income of the investor and is taxed at the applicable tax rate.

Benefits of Using Post Office Fixed Deposit Calculator

Here are some of the benefits of using Post Office Fixed Deposit calculator.

• As post office fd calculator is an automatic calculator there is no scope of any error.
• It makes the complicated calculation easy at multiple tenures, interest rate and amount, this saving time and money.
• The tool can be easily used online and is free of cost.

Features of Post Office FD Calculator

• Post office time deposit can be opened for different tenures of 1,2, 3, and 5 years.
• The interest is paid out annually but calculated quarterly.
• The scheme is best suitable for investors with low-risk appetite and who wants to gain guaranteed return on investment.
• The interest rate for a five year term deposit scheme is notified before April 1^st every year.

Post Office Fixed Deposit Investment Rules

The minimum deposit an individual can make towards the POFD scheme is Rs.200 and thereafter in multiples of INR 200.  An individual can open a joint or individual FD account in post offices. The individual can open post office FD account in all public and private sector banks. Moreover, it can be transferred from one post-office to another in a simple and hassle-free way. 

The premature withdrawal from post office fixed deposit scheme can be made only after completion of 6 months.  After completion of 6 months the premature withdrawal can be made at a penalty of 1%. After completion of maturity tenure, the subscriber can reinvest the maturity amount into the Post office FD scheme or can redeem the maturity amount.  Moreover, the investor can also take loan against Post Office Fixed Deposit by requesting the post office.

Post Office FD Calculator – FAQs