When it comes to earning fixed returns or putting money in the safest investment instrument, the first name is always taken from fixed deposits. You can deposit a lump sum of money in a fixed deposit scheme and earn generous returns by the time of maturity. India Post also offers a fixed deposit plan, named Post Office Fixed Deposit (POFD). This is similar to bank FDs and offers investors a fixed return on their investment. You can also calculate returns from your post office fixed deposit investment easily using a post office FD calculator. In this article, we will learn everything related to post office fixed deposit calculators and how to use the same.
Post Office Fixed Deposit (POFD)
Post office fixed deposit or POFD is a fixed return savings scheme offered by India Post. The plan is available at all the Indian Post offices. You can open an FD account at your nearest post office branch and enjoy guaranteed returns. Here are the key features of post office fixed deposit:
- The interest rate offered in post office fixed deposit starts from 6.9% and can be up to 7.7% based on the time period of investment you opt for
- The interest is calculated quarterly but paid annually
- The investor can also use the deposits made in POFD to avail a loan
- The post office fixed deposit scheme comes with multiple tenure options of 1 to 5 years
- You can start the fixed deposit with a minimum amount of Rs 200
Here is the different rate of interest offered on different tenues:
|Tenure||Interest Rate (p.a)|
How to Calculate Post Office Fixed Deposit Return?
Calculating returns from post office fixed deposits is done using the following formula:
M = P x (1 + i/4)^(n x 4)
- M = Final value of the maturity
- P = Principal invested amount
- i = Interest rate offered in the FD
- n = tenure of investment in years
An example will help us to understand this in a better way. Suppose, you want to invest Rs 2 lakhs in the post office fixed deposit for 5 years, on which you will get an interest rate of 7.7% per annum. Putting the values of the formula we get:
P = 2,00,000
i = 7.7
n = 5
Therefore, M = 200000 x (1 + 7.7/4)^(5 x 4)
M = Rs 2,77,000.
But why should you do this complicated calculation if you have a tool like the FD calculator post office. There are a number of post office interest calculators available online in which INDmoney post office time deposit calculator is one. Let us learn how to use the same.
How to Use INDmoney Post Office Scheme Calculator for Fixed Deposits
Using INDmoney post office FD calculator 2022 is an easy to use tool. You can calculate the returns without any hassle within a few simple steps:
Step 1: Open INDmoney post office FD calculator in your browser. You can use your smartphone or laptop for the same.
Step 2: Enter the total investment amount, rate of interest (p.a), and time period of investment.
Nothing else! The INDmoney post office FD interest rate 2022 calculator will use the formula and show you the results instantly. You will get to know the following things:
- Invested Amount: The principal amount that you invested in the post office fixed deposit
- Return: The amount of interest accumulated over the tenure of investment
- Total value: The final maturity amount that you will receive at the end of the tenure
There are several benefits of using INDmoney post office FD calculator. Let us learn those in detail.
Advantages of Using INDmoney Post Office FD Calculator
Here are perks of using INDmoney online post office FD calculator:
- The INDmoney post office FD calculator saves you from doing manual calculations which involves usage of a complicated formula. The calculator uses the formula and shows you the results instantly.
- The post office FD calculator shows you accurate results every time. This solves the problem of mathematical errors that usually happens while doing manual calculations.
- Since the returns from post office FD is guaranteed, you can plan your investments accordingly by using the post office FD calculator.
- Different rates of interest are offered on different investment tenures in post office FD. You can easily enter the relevant numbers in the calculator and get results as per your requirement. This enables you to plan beforehand so that you can maximize returns from your investment.
- You can modify the inputs in the INDmoney post office FD calculator as many times you want. This gives you the ability to compare different customizations so that you can choose the right tenue of investment.
- Using INDmoney post office FD calculator is also necessary because you cannot withdraw an amount from your fixed deposit before maturity. In case you want to, you may have to lose a fair bit of interest earned from the same. Therefore, it is always advisable to evaluate everything prior to making any investment in any fixed deposit scheme. The post office FD calculator helps you with the same.
Using a post office FD calculator is a good habit to learn if you want to make planned and efficient investment in a post office fixed deposit scheme. Having the knowledge of returns beforehand will enable you to make sound decisions and earn maximum possible returns from your post office FD investment.
How is a post office FD calculator different from normal FD calculator?
There is no difference between post office FD calculator and standard FD calculator. You can use either of the two to calculate returns from your fixed deposit investments.
Can I save tax on post office FD returns?
No, the returns made from post office deposits are taxable as per the provisions given under Indian Tax Act.
Can I make premature withdrawal from my post office FD?
Yes, you can opt for premature withdrawal for your post office FD but only after completing a tenure of six months. Also, if you have opted for time deposit, the interest will be paid on the basis of completed years.
Can I take out a loan on post office FD?
Yes, you can take out a loan on post office FD.