Post Office Fd Rates Calculator

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Post Office Time Deposit (FD) Calculator

1 Year 2 Years 3 Years 5 Years
*Auto-updates based on duration selection
Total Wealth Accrued ₹0
Final Maturity Value ₹0
Note: Calculations are based on quarterly compounding as per India Post norms.
function updateRate() { var tenure = document.getElementById('tenureYears').value; var rateInput = document.getElementById('growthPercentage'); // Mock current PO rates (example) if (tenure == "1") rateInput.value = "6.9"; else if (tenure == "2") rateInput.value = "7.0"; else if (tenure == "3") rateInput.value = "7.1"; else if (tenure == "5") rateInput.value = "7.5"; } function calculateFD() { var P = parseFloat(document.getElementById('depositAmount').value); var t = parseFloat(document.getElementById('tenureYears').value); var r = parseFloat(document.getElementById('growthPercentage').value); if (isNaN(P) || isNaN(t) || isNaN(r) || P <= 0) { alert("Please enter valid positive numbers for all fields."); return; } // Post Office Time Deposit uses Quarterly Compounding // Formula: A = P * (1 + (r/n))^(n*t) // n = 4 (quarterly) var n = 4; var ratePerPeriod = (r / 100) / n; var periods = n * t; var maturity = P * Math.pow((1 + ratePerPeriod), periods); var totalEarnings = maturity – P; document.getElementById('totalEarnings').innerText = "₹" + totalEarnings.toLocaleString('en-IN', { maximumFractionDigits: 0 }); document.getElementById('maturityValue').innerText = "₹" + maturity.toLocaleString('en-IN', { maximumFractionDigits: 0 }); document.getElementById('results-area').style.display = 'block'; }

Understanding the Post Office Fixed Deposit (Time Deposit)

The Post Office Time Deposit (POTD) is one of the most secure investment avenues in India, backed by the Central Government. It is popularly known as a Post Office FD. Unlike bank deposits that vary significantly, the Post Office offers fixed returns for different tenures ranging from one to five years.

How the Calculation Logic Works

While most investors think of interest as a simple annual payout, the Post Office calculates growth using Quarterly Compounding. This means the percentage yield is added to your principal every three months, which creates a "snowball effect" on your savings. The formula used by our tool is:

Maturity = Principal × (1 + (Annual Yield / 4))^(4 × Tenure)

Key Features of Post Office FD

  • Sovereign Guarantee: Being a government-backed scheme, there is zero risk of default.
  • Minimum Entry: You can start with as little as ₹1,000. There is no maximum limit.
  • Tax Benefits: Investments in the 5-year Time Deposit qualify for tax deductions under Section 80C of the Income Tax Act.
  • Transferability: You can transfer your FD account from one post office to another across India.

Example Scenario

If you deposit ₹1,00,000 for a 5-year tenure at an annual rate of 7.5%, the quarterly compounding works as follows:

Metric Value
Principal Amount ₹1,00,000
Tenure 5 Years
Total Interest Accrued ₹44,995
Maturity Amount ₹1,44,995

Frequently Asked Questions

Can I withdraw the money early?
Yes, premature withdrawal is allowed after six months, though it may attract a lower rate of return compared to the original agreement.

Is the interest paid out monthly?
No, in a Time Deposit, the interest is calculated quarterly and can be withdrawn annually. If not withdrawn, it continues to compound.

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