Post Office FD Calculator

The Post Office FD calculator is quite handy when planning personal finance. It is a simple and convenient tool to calculate a Post Office FD's maturity amount for a given investment, rate of return and duration.

For context, fixed deposits (FD) are risk-free investments that provide rates of return that tends to be higher than that of savings deposits. The rate of return here is fixed. Hence you can calculate the exact figure of the return you will get beforehand.

Now, to calculate the returns or the maturity amount, you can choose to either apply a formula manually or simply use an online FD calculator.

The online Post Office FD calculator of Angel One helps you calculate and compare all the maturity amounts for the fixed deposits for various durations at the Post Office.

For example, suppose you have Rs. 2,00,000 to invest for 5 years. There is an FD that gives 6.25% interest. To calculate the interest amount, you simply have to - 

1. Go to the Post Office FD calculator page on the Angel One website.
2. Enter Rs. 2,00,000 under “Total Investment”
3. Enter the interest rate as 6.25%
4. Enter the duration as 5 years

You will then automatically find the future value of the investment at the end of 5 years to be Rs. 273,380 and the estimated return to be Rs. 73,380. You can then repeat the process for as many FD schemes as you want and compare their returns.

1. Predicting Your Investment's Maturity Amount: The calculator helps you accurately estimate the final maturity amount of your investment as well as the return that you will make on the principal, in advance.
2. Accelerated decision-making process: Thanks to the speed and simplicity of these calculations, investors can effortlessly compare the potential gains from an FD against a range of alternative investment options, including other FDs or different durations for the same FD.
3. Free, Accurate, and User-Friendly: Utilising just your phone or laptop from the comfort of your home, you can access the estimation tool without the need to pay any fees. In addition, the automation of the calculations ensures accuracy, saving you both time and effort.

Post office FD is available in four tenures, each with a particular corresponding interest rate. This interest is payable annually but calculated quarterly. As such, a TDS applies to the interest received by the investor. But then, a 5-year post office FD allows you to have tax benefits under section 80C of the Income Tax Act.

Only one fixed deposit is allowed per account - but then, you can open multiple accounts in post offices. The FD has a lock-in period of 6 months, during which it cannot be withdrawn. After that, a premature withdrawal facility is available but at a penalty.

1. Principal Amount: The principal refers to the investment amount contributed by the investor. Note that a higher initial investment will result in a higher maturity amount.
2. Tenure of Investment: The tenure of investment represents the duration until the investment matures, after which the funds are withdrawn. The longer the investment tenure, the greater the interest earned on the principal amount.
3. Rate of Interest: The interest rate signifies the return received on the investment after each time period. Consequently, a higher interest rate leads to a greater maturity amount.
4. Frequency of Compounding: This factor pertains to the frequency at which the interest is computed and added to the principal within a specified time frame. A higher compounding frequency yields a larger amount of interest earned. This is because the compounding effect is applied more frequently, resulting in more substantial returns.
5. Taxation: A higher tax rate reduces the overall amount received as returns, effectively impacting the investor's net gains.
6. Inflation: Despite earning a high return on the FD, the real value of the returns may be diminished if the prevailing inflation rate is high.