Post Office Schemes

Post Office Time Deposit (POTD) Calculator

Often beating bank FDs, the Post Office TD offers sovereign guaranteed returns with annual interest payouts.

Deposit Details

Minimum ₹1,000. Multiples of ₹100. No upper limit.

5-Year POTD qualifies for Section 80C tax deduction (up to ₹1.5L).

Returns & Payouts

Annual Income

₹15,427

Paid out every year to your savings account.

Principal Amount₹2,00,000
Total Interest (5 yrs)+₹77,136
Total Maturity (Principal)₹2,00,000

How POTD Differs from Bank FDs

  • No Cumulative Option: Unlike bank FDs where you can choose to reinvest the interest until maturity (Cumulative), the Post Office Time Deposit is strictly a non-cumulative scheme. The interest is calculated quarterly but mandatorily paid out to your savings account every year.
  • Taxation: The interest earned is fully taxable. However, if you choose the 5-Year TD, the principal amount deposited is eligible for a tax deduction under Section 80C (up to ₹1.5 Lakhs).
  • Sovereign Guarantee: While bank FDs are insured only up to ₹5 Lakhs by DICGC, Post Office deposits are backed by the Sovereign Guarantee of the Government of India, making them 100% risk-free.