How to calculate post office FD returns with post office FD calculator

Fixed Deposit (FD) is a popular form of investment among different types of investors. These investments are risk-free, deliver assured returns, and come at attractive rates of interest. Although fixed deposits can also be opened with big banks, small finance banks and non-banking finance companies (NBFCs), post office fixed deposits are considered to be extremely reliable. Post office fixed deposits are the preferred mode of investment for many senior citizens and homemakers who are extremely risk-averse and want to grow their money.

Post office FD interest rates

The total returns on FDs can be calculated beforehand with a post office FD calculator. This can be done once an investor finds out the rate of interest and determines the payout period over which they wish to receive the returns.

The government revises post office FD interest rates at the beginning of each quarter. These rates are calculated based on the yield of government securities. Here are the rates of interest for post office FDs for the second quarter of FY22:

Period Interest rate
1 year 5.5%
2 years 5.5%
3 years 5.5%
5 years 6.7%

How to calculate post office FD returns?

Based on these interest rates, an investor can calculate the total FD returns with a post office fixed deposit calculator. Alternatively, investors can use the equation

A = P (1 + (r/400))^n


A stands for the

amount to be received on maturity

P refers to the

principal amount

r is for the

interest rate

n represents the

number of quarters in the period chosen


The foremost advantage of a fixed deposit is that it allows an investor to calculate the total returns that they will receive before they invest. In this case, they can use a post office time deposit calculator or the aforementioned formula to compute their returns before committing to the investment.

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