Post Office TD interest for 1, 2, 3 or 5 years, compounded quarterly and paid yearly
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 18 Oct 2026.A Post Office Time Deposit runs for 1, 2, 3 or 5 years, compounds interest quarterly and pays it out once a year. At the 7.5 per cent five-year rate notified for October to December 2026, ₹1,00,000 pays ₹7,714 each year and ₹38,570 over five years, with the deposit returned.
Rates and rules read from the sources listed on this page (the earliest on 18 Oct 2026); they may have changed since.
Under "Term", choose 1, 2, 3 or 5 years; each chip shows its notified rate.
Pick one of the deposit chips, or set the "Deposit" slider.
Check the "Interest rate" and change it if a newer rate has been notified.
Read the interest paid at the end of each year and "Interest over" the term, then press "Share result".
The Post Office Time Deposit calculator works out what a post office fixed deposit pays. Pick the term, one, two, three or five years, and enter the deposit; the rate for that term is filled in. You get the interest paid each year, the total over the term and the deposit returned at maturity. It runs in your browser and nothing is uploaded.
The one thing to get right is how the interest is paid. The scheme says interest "shall be compounded on quarterly basis and payable to the account holder at the end of each year". So inside a year the rate compounds four times, and at the year's end that interest is paid out. Interest left unwithdrawn earns nothing more. Each year pays the same: deposit × ((1 + rate ÷ 4)^4 − 1), rounded to the nearest rupee. A bank FD that reinvests interest would end a five-year term higher than this; a post office TD pays the same interest every year.
| Term | Rate | Paid each year on ₹1,00,000 | In all |
|---|---|---|---|
| 1 year | 6.9% | ₹7,081 | ₹7,081 |
| 2 years | 7.0% | ₹7,186 | ₹14,372 |
| 3 years | 7.1% | ₹7,291 | ₹21,873 |
| 5 years | 7.5% | ₹7,714 | ₹38,570 |
The deposit is ₹1,000 or more in multiples of ₹100, with no maximum, one deposit per account. The rate on the day the account is opened applies until maturity. Only the five-year deposit is listed for the old-regime tax deduction.
Early closure is not calculated here. Nothing can be withdrawn in the first six months; closed before a year, the deposit earns the post office savings rate; after a year, two percentage points less than the rate for the term. The savings rate on the day you close is not known in advance, so the post office will quote the figure.
The rates are notified every quarter by the Ministry of Finance. Check the current rate at the post office or on indiapost.gov.in and change it above if it has moved.
Sources: National Savings Time Deposit Scheme, 2019, paras 3, 5, 7 and 8; the National Savings Institute's Time Deposit rate history; Department of Posts SB Orders 23/2023 and 12/2026; Department of Economic Affairs Office Memorandum of 30.09.2026. Checked 18 Oct 2026.
Yes. The post office's fixed deposit is the Time Deposit (TD) account. For October to December 2026 the rates are 6.9% for one year, 7.0% for two, 7.1% for three and 7.5% for five (checked 18 Oct 2026). Interest compounds quarterly and is paid every year, so ₹1,00,000 for one year earns ₹7,081. Enter an amount and term above for the full schedule.
For October to December 2026 the notified rates are 6.9% for one year, 7.0% for two years, 7.1% for three years and 7.5% for five years, unchanged since 1 January 2024. The Ministry of Finance announces the next quarter's rates around the end of each quarter.
At 7.5%, compounded quarterly and paid yearly, ₹1,00,000 earns ₹7,714 each year, which is ₹38,570 over five years. The ₹1 lakh comes back at maturity. Each year's interest is the same because it is paid out rather than added to the deposit.
Yearly. The scheme rule says interest is compounded quarterly and payable at the end of each year of the deposit, counted from the day the account is opened. Unwithdrawn interest earns nothing more, so many people have it credited to a savings account.
A bank's cumulative FD adds each quarter's interest to the deposit for the whole term, so the interest itself earns interest. A post office TD pays the interest out every year, so compounding stops at the end of each year. At 7.5% over five years the gap on ₹1 lakh is about ₹6,400.
Not in the first six months. Between six months and a year, the deposit earns the post office savings account rate. After a year, the interest is recalculated at two percentage points below the rate for the term, and a five-year deposit closed after four years gets the three-year rate.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about Post Office TD Calculator (Time Deposit) and anybody who knows can answer. No account needed.
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