India Post (Post Office) ₹1 Lakh FD 2026 — Interest & Maturity at 7.5%
A ₹1 Lakh fixed deposit in India Post (Post Office) at 7.5% p.a. for 5 years (quarterly compounding) matures to approximately ₹1.45 L. The total interest earned is ₹44,995, or about ₹750/month if you choose the payout option. Senior citizens earn 7.5%, yielding ₹1.45 L on the same deposit.
Last updated: 24 May 2026, 10:00 AM IST
Maturity Amount
₹1.45 L
at 7.5% for 5 years (quarterly compounding) at India Post (Post Office)
India Post (Post Office) — FD Details
Regular Rate
7.5% p.a.
Senior Citizen Rate
7.5% p.a.
TDS on FD Interest
TDS rules apply same as banks: 10% TDS on interest exceeding ₹40,000/year. However, many post office FDs escape TDS in practice for amounts below threshold. 5-year FD qualifies for 80C deduction.
Premature Withdrawal
Premature withdrawal after 6 months (vs 7 days at banks). Penalty: 2% for 6mo–1yr, 1% for 1yr+. No premature withdrawal allowed before 6 months. 5-year tax-saver cannot be broken early.
Minimum Deposit
₹1,000, multiples of ₹100. No maximum limit.
Special Scheme
Post Office Time Deposit offers government-guaranteed returns. 5-year TD qualifies for Section 80C deduction like tax-saver FDs.
India Post (Post Office) FD — Rates, TDS & Withdrawal Rules
A homemaker managing family savings in Pune deposits ₹1 Lakh in India Post (Post Office) at 7.5% for 5 years. With quarterly compounding, the deposit matures to ₹1.45 L, earning ₹44,995 in interest. A senior citizen would earn ₹44,995 at the preferential rate of 7.5%. India Post (Post Office) charges a 1% penalty for premature withdrawal. TDS rules apply same as banks: 10% TDS on interest exceeding ₹40,000/year. However, many post office FDs escape TDS in practice for amounts below threshold. 5-year FD qualifies for 80C deduction. The non-cumulative (monthly payout) option gives about ₹750/month, useful for retirees needing regular income. For higher returns, consider laddering: split the ₹1 Lakh across 1-year, 2-year, and 5-year FDs for better liquidity while capturing different rate slabs.
Data Sources
- RBI — Master Direction on Interest Rates (2026) — www.rbi.org.in
- Bank Websites — Latest FD Rates (May 2026) — www.rbi.org.in
- Income Tax Act — TDS on FD Interest (2025) — incometaxindia.gov.in
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Important: This calculator provides estimates based on the inputs and assumptions you provide. Results are mathematical projections, not financial advice or recommendations. Actual outcomes will vary based on market conditions, policy changes, individual circumstances, and factors not captured by this tool. Verify all figures independently and consult qualified professionals before making financial decisions.
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Founding Partner at Tykhe Ventures ($20M AUM, early-stage investing) and Founder of Kompella Technologies, which provides fractional CTO/CPO services to funded startups. NISM XIX-C certified. Built RupayWise because the financial tools available in India were either oversimplified or designed to sell you a product — not help you decide.
Frequently Asked Questions
What is the maturity of ₹1 Lakh FD in India Post (Post Office)?
At 7.5% for 5 years with quarterly compounding, ₹1 Lakh matures to ₹1.45 L. Senior citizens at 7.5% get ₹1.45 L.
How much monthly interest on ₹1 Lakh FD from India Post (Post Office)?
The monthly interest payout on a ₹1 Lakh FD at 7.5% is approximately ₹750.
Is TDS applicable on ₹1 Lakh FD at India Post (Post Office)?
TDS rules apply same as banks: 10% TDS on interest exceeding ₹40,000/year. However, many post office FDs escape TDS in practice for amounts below threshold. 5-year FD qualifies for 80C deduction.
Can I break my India Post (Post Office) FD early?
Premature withdrawal after 6 months (vs 7 days at banks). Penalty: 2% for 6mo–1yr, 1% for 1yr+. No premature withdrawal allowed before 6 months. 5-year tax-saver cannot be broken early.
Is India Post (Post Office) FD safe?
India Post (Post Office) FDs are government-guaranteed, making them among the safest investment options in India.
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Disclaimer
This calculator provides estimates based on the interest rates and tenure shown. Actual maturity may vary based on the bank's specific compounding method and any rate revisions during the tenure. Bank rates are sourced from public data and may not reflect the latest changes — always confirm with your bank before investing. TDS is deducted at source if applicable. This is not financial advice. RupayWise is not a deposit broker or financial advisor.