Post Office FD Calculator (Time Deposit)
Calculate returns on 100% Government-backed Post Office Fixed Deposits. Unlike bank FDs, there is no Rs 5L DICGC insurance cap — your full amount is secured by the Government of India.
Investment Report
EQUIS Take (Asli Sach)
Bank FDs mein sirf ₹5 Lakh tak ka DICGC insurance milta hai. Post Office FD Government of India se backed hai, yani
The Math Behind Post Office FD Calculator (Time Deposit)
Understanding the true mechanics of this instrument helps you make optimal decisions with your money.
1. 100% Government Backed (No ₹5L Cap)
Post Office FDs are directly backed by the Government of India — unlike bank FDs which are insured only up to ₹5 Lakhs under DICGC. Ideal for large, safe deposits.
2. 5-Year FD Qualifies for 80C
Only the 5-year Post Office Time Deposit qualifies for Section 80C deduction (up to ₹1.5L). This makes it a tax-efficient, completely safe alternative to tax-saver bank FDs or ELSS for risk-averse investors.
3. Interest Taxable — Declare in ITR
Interest earned on Post Office FDs is taxable as 'Income from Other Sources.' Unlike banks, Post Offices do NOT deduct TDS. You must proactively declare this income annually in your Income Tax Return.
Frequently Asked Questions
Is Post Office FD safer than bank FD?expand_more
Does 5-year Post Office FD qualify for Section 80C?expand_more
Government & Small Savings Benchmark Rates (Q2/Q3 FY26)
| Lending Institution / Scheme | Indicative Benchmark Rate | Key Insight / Terms |
|---|---|---|
| Post Office Recurring Deposit (RD) | 6.70% p.a. | Compounded quarterly. Sovereign guarantee backed by Govt of India. |
| Sukanya Samriddhi Yojana (SSY) | 8.20% p.a. | Completely tax-free under Section 80C and EEE tax category. |
| Senior Citizen Savings Scheme (SCSS) | 8.20% p.a. | Quarterly interest payout. Maximum investment ₹30 Lakhs. |
| Public Provident Fund (PPF) | 7.10% p.a. | Risk-free sovereign backing. Exempt-Exempt-Exempt (EEE) status. |
| Kisan Vikas Patra (KVP) | 7.50% p.a. | Compounded annually. Safe capital preservation vehicle. |
*Disclaimer: Benchmark rates are compiled directly from public bank filings and schedule circulars. Individual rate offers vary based on bureau score (CIBIL 750+), risk tiering, and loan-to-value (LTV) ratios.
Ensure Your Guaranteed Capital is Actually Beating Inflation
Fixed income offers security, but without tax optimization, inflation quietly erodes your purchasing power:
Sovereign government guarantee with complete EEE exemption for your daughter's future.
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Factor in property maintenance, inflation, and opportunity cost before committing to a 20-year loan.
Dealers quote low flat rates that are mathematically double when calculated on reducing balance.