1. What is the Post Office FD Calculator?

The Post Office Fixed Deposit Calculator helps you estimate the maturity amount and interest earned on your India Post fixed deposit investments using the compound interest formula.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Maturity amount (INR)
• \( P \) — Principal amount (INR)
• \( R \) — Annual interest rate (decimal)
• \( n \) — Compounding frequency per year
• \( T \) — Time period in years

Explanation: The formula calculates how your investment grows over time with compound interest, where interest is added to the principal at regular intervals.

3. Importance of FD Calculation

Details: Accurate FD calculation helps in financial planning, comparing investment options, and understanding how compounding can significantly increase your returns over time.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate as decimal (e.g., 0.075 for 7.5%), select compounding frequency, and time period in years. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What are the current Post Office FD interest rates?
A: Interest rates vary by tenure and are revised quarterly. Check the official India Post website for current rates.

Q2: How often is interest compounded in Post Office FDs?
A: Typically quarterly, but it may vary based on the specific FD scheme and tenure.

Q3: What is the minimum investment for Post Office FD?
A: The minimum investment is usually ₹1,000 for general citizens and ₹100 for senior citizens.

Q4: Are Post Office FDs taxable?
A: Interest earned is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q5: What is the maximum tenure for Post Office FD?
A: Maximum tenure is typically 5 years, but some schemes may offer different durations.