The Post Office Fixed Deposit (FD) scheme has always been one of the most trusted saving options for Indian investors. Backed by the Government of India, this scheme offers attractive interest rates and guaranteed returns, making it ideal for individuals seeking safe and steady growth for their savings. In 2025, many small investors are showing renewed interest in Post Office FDs due to stable returns and low risk compared to market-linked investments. Let’s understand in detail how much you can earn on deposits of ₹10,000, ₹20,000, ₹30,000, ₹40,000, ₹50,000, and ₹1 lakh using the Post Office FD Calculator.
What is a Post Office FD?
A Post Office Fixed Deposit, also known as the National Savings Time Deposit Account, is a government-backed savings scheme that allows individuals to deposit a lump sum for a fixed period at a predetermined interest rate. The interest rate remains constant throughout the tenure, ensuring assured returns. Investors can choose from 1-year, 2-year, 3-year, or 5-year terms based on their financial goals.
Post Office FD Interest Rates 2025
As of 2025, the Post Office FD interest rates are as follows:
1-year FD – 6.9% per annum
2-year FD – 7.0% per annum
3-year FD – 7.1% per annum
5-year FD – 7.5% per annum
These rates are revised every quarter by the government, depending on market conditions. The 5-year FD is particularly popular as it also qualifies for tax benefits under Section 80C of the Income Tax Act.
How Does the Post Office FD Calculator Work?
The Post Office FD Calculator helps you estimate the maturity amount and interest earnings based on your investment amount, tenure, and the prevailing interest rate. It uses a compound interest formula to determine your total return. By entering the principal amount and selecting the tenure, the calculator instantly shows the maturity value you can expect. This tool is especially useful for planning future financial goals like children’s education, marriage, or retirement.
Post Office FD Returns on Different Investment Amounts
Let’s look at how much you can earn on different deposits under the 5-year FD plan, assuming an annual interest rate of 7.5%.
For ₹10,000 Deposit
If you invest ₹10,000 for 5 years at 7.5%, your maturity amount will be around ₹14,370. The total interest earned would be approximately ₹4,370.
For ₹20,000 Deposit
A ₹20,000 deposit for the same period will grow to about ₹28,740. You will earn an interest of around ₹8,740 over five years.
For ₹30,000 Deposit
When you invest ₹30,000, your maturity amount after 5 years will be roughly ₹43,110, giving you an interest of ₹13,110.
For ₹40,000 Deposit
A ₹40,000 investment will return nearly ₹57,480 at maturity. Your total interest gain will be about ₹17,480.
For ₹50,000 Deposit
If you invest ₹50,000 for five years, the maturity value will be around ₹71,850. Your total interest earnings will be ₹21,850.
For ₹1 Lakh Deposit
A ₹1 lakh investment for 5 years at 7.5% will yield approximately ₹1,43,700. That means you’ll earn ₹43,700 as interest over the investment period.
Benefits of Investing in Post Office FD
One of the biggest advantages of a Post Office FD is its security. Since it is government-backed, the investment is completely safe even during market fluctuations. The guaranteed returns make it ideal for conservative investors. Additionally, investors can easily open an FD account at any post office across the country with minimal paperwork. Another benefit is that you can transfer your FD account from one post office to another if you relocate.
For long-term investors, the 5-year FD is beneficial not just for its higher interest rate but also for tax savings under Section 80C, where you can claim up to ₹1.5 lakh as a deduction. The interest is payable annually but can also be reinvested, allowing your returns to grow through compounding.
Who Should Invest in a Post Office FD?
A Post Office FD is suitable for individuals looking for safe and stable returns without taking market risks. Senior citizens, salaried employees, and people in rural areas often prefer this scheme. It’s also a good choice for parents who wish to create a secure corpus for their children’s future or those looking to diversify their savings portfolio with a risk-free instrument.
How to Open a Post Office FD Account
You can open a Post Office FD account easily by visiting the nearest post office. The required documents include a valid ID proof, address proof, and passport-sized photographs. The minimum deposit required is ₹1,000, and there is no upper limit. You can make the deposit in cash or by cheque. The account can be opened individually or jointly, and even minors above 10 years of age can operate it.
Alternatively, if you have an active savings account in the post office with internet banking enabled, you can open and manage your FD online.
Taxation on Post Office FD
While the 5-year Post Office FD qualifies for a deduction under Section 80C, the interest earned is taxable according to your income slab. The Post Office does not deduct TDS automatically, so you must declare your interest income while filing your income tax return.
Final Thoughts
The Post Office FD remains one of the most reliable and simple investment options in 2025. With guaranteed returns, government security, and competitive interest rates, it is a great choice for anyone looking to grow their savings steadily. Whether you invest ₹10,000 or ₹1 lakh, your money works safely and consistently to deliver predictable returns.
FAQs
1. What is the minimum amount required to open a Post Office FD?
The minimum amount required is ₹1,000, and you can invest in multiples of ₹100 thereafter.
2. Can I withdraw my Post Office FD before maturity?
Yes, premature withdrawal is allowed after six months, but the interest rate will be lower than the original rate.
3. Does the Post Office FD offer tax benefits?
Yes, only the 5-year Post Office FD qualifies for a tax deduction under Section 80C of the Income Tax Act.
4. Is the Post Office FD interest compounded quarterly or annually?
The interest is compounded quarterly but payable annually, helping your investment grow faster through compounding.
5. Can I open a Post Office FD account online?
Yes, if you have a post office savings account with internet banking access, you can open an FD account online without visiting the branch.
Disclaimer
The interest rates mentioned are based on current government data and may change without prior notice. Investors are advised to verify the latest rates from the official India Post website or visit their nearest post office before investing.
