Post Office FD Interest Rate: See how Rs 1,50,000 investment grows in 1-year, 2-year, 3-year, 5-year deposits (with examples)

Written By: ZeeBiz WebTeam New DelhiZeeBiz WebDesk Updated on: July 28, 2024, 01.44 PM IST

Understanding Post Office FD Rate: The Post Office Time Deposit Account (TD) is a fixed deposit scheme available at post offices across India. It offers quarterly compounding of interest with annual payouts. Currently, it offers four maturity options ranging from one to five years, with annual returns between 6.9 per cent and 7.5 per cent calculated quarterly. The account requires a minimum investment of Rs 1,000, with no upper limit, in multiples of Rs 100. For example, amounts like Rs 1,100 and Rs 9,900 are accepted, but not Rs 1,110 and Rs 9,990.

Understanding Post Office FD Rate: The Post Office Time Deposit Account (TD) - one of the several types of guaranteed-income small savings schemes offered at the post offices in the country - is essentially a fixed deposit scheme offered by a commercial bank wherein interest is compounded quarterly but paid annually. Currently, the Post Office FD account comes in four maturity options, ranging from one year to five years and yielding annual returns of 6.9 per cent to 7.5 per cent per annum calculated quarterly, according to the India Post website, indiapost.gov.in. A post office fixed deposit can be set up with a minimum investment of Rs 1,000, with no upper limit, in multiples of Rs 100. For instance, deposit amounts such as Rs 1,100 and Rs 9,900 are acceptable for investing in the post office TD scheme, but not Rs 1,110 and Rs 9,990.

Post Office 1-Year, 2-Year, 3-Year, 5-Year TD Interest Rates

Period	Rate
One year	6.9%
Two years	7.0%
Three years	7.1%
Five years	7.5 %

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Now, here are some examples to help you understand these returns better.

Example 1 | How a sum of Rs 1.5 lakh grows in all four options in the Post Office FD small savings scheme

Maturity	Interest Earned	Principal Amount	Total Value
One year	Rs 10,621	Rs 1,50,000	Rs 1,60,621
Two years	Rs 22,332	Rs 1,50,000	Rs 1,72,332
Three years	Rs 35,261	Rs 1,50,000	Rs 1,85,261
Five years	Rs 67,492	Rs 1,50,000	Rs 2,17,492

Example 2 | How a sum of Rs 20,000 grows in all four options in the Post Office FD small savings scheme

Maturity	Interest Earned	Principal Amount	Total Value
One year	Rs 1,416	Rs 20,000	Rs 21,416
Two years	Rs 2,978	Rs 20,000	Rs 22,978
Three years	Rs 4,701.5	Rs 20,000	Rs 24,701.5
Five years	Rs 8,999	Rs 20,000	Rs 28,999

Example 3 | How a sum of Rs 5,000 grows in all four options in the Post Office FD small savings scheme

Maturity	Interest Earned	Principal Amount	Total Value
One year	Rs 354	Rs 5,000	Rs 5,354
Two years	Rs 744	Rs 5,000	Rs 5,744
Three years	Rs 1,175	Rs 5,000	Rs 6,175
Five years	Rs 2,250	Rs 5,000	Rs 7,250

The calculated figures given above are for illustrative purposes only, based on the prevailing interest rates.

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