Post Office FD Calculator — India Post Time Deposit — FY 2026-27

Post Office Time Deposit rates (FY 2026-27, Q1): 1-year: 6.9%; 2-year: 7.0%; 3-year: 7.1%; 5-year: 7.5%. The 5-year POTD qualifies for Section 80C deduction (unlike bank FDs which require a dedicated tax-saver product). Rates revise quarterly by the Department of Economic Affairs.

Post Office typically pays 50-100 bps more on longer tenures (5-year). Bank FDs win on convenience (online opening + auto-renewal). The 5-year POTD is especially attractive for 80C (bank tax-saver FDs at similar rates have lock-in but may have lower rates). For non-80C deposits, banks win for deposits under ₹5 L due to ease.

No — Post Office FD interest is fully taxable at your slab rate. No TDS is deducted at source (unlike banks), but you must declare it under "Income from Other Sources" in your ITR. The 5-year POTD DOES give Section 80C deduction on the deposit (up to ₹1.5 L). Interest remains fully taxable.

Currently, Post Office FDs require physical branch opening or via the India Post Payments Bank (IPPB) app for linked-account customers. Full online opening is in rollout. Take PAN + Aadhaar + initial deposit to any India Post branch — account opens same day with a physical pass-book.

Yes, after 6 months from opening, with these rules: (a) Broken within 6 months: no interest. (b) 6-12 months: savings rate (4%). (c) Beyond 12 months: applicable rate for actual period minus 2% penalty. The 5-year POTD broken before 5 years also forfeits Section 80C benefits — the 80C deduction claimed is added back to income in the break year.