The Post Office Fixed Deposit is among the oldest and most preferred investment options, especially among individuals who are close to their retirement age. It works just like a standard bank fixed deposit in which you put your money for a fixed time period. In return, you receive returns on the deposited amount. For better financial planning, it is better to get an estimate of the maturity amount before investing.
Investors can use a Post Office FD calculator to get an accurate picture of the maturity amount. It is very easy to use, and one only needs to put in some information, and the calculator will produce the estimated maturity amount. Let’s learn more about the Post Office FD interest calculator.
What is Post Office FD Calculator?
A Post Office FD calculator is the most convenient and reliable measure of estimating the maturity amount of a Post Office FD. In order to calculate the interest amount and the final maturity value, you just need to enter the principal amount, interest rate, tenure and whether interest gets compounded annually or semi-annually.
After you put in all these details and click proceed, the Post Office FD interest calculator will show you the maturity amount that you will receive when the tenure of the Post Office fixed deposit ends.
The India Post, which is a government entity, issues the Post Office FD and hence, it is considered one of the safest investment instruments available. The Post Office FD has four tenures – 1 year, 2 years, 3 years and 5 years. The Government of India revises the interest rate every quarter. Therefore, you need to be careful to enter the updated interest rate in the Post Office FD interest rate calculator for an accurate measure of maturity amount.
Now that you have understood the meaning of the Post Office FD interest rate calculator, let’s move to other aspects of this topic.
Benefits of Post Office FD Calculator
Some benefits of the Post Office FD interest rate 2023 calculator are as follows:
- It is an efficient, time-saving mechanism. Investors can use the FD calculator to ascertain the maturity amount within a few seconds. It also saves them from doing complex manual calculations.
- The results provided by the Post Office fd calculator are accurate and reliable most of the time. It restricts the possibility of manual calculation errors that may happen if one tries to find out the maturity amount using the formula.
- By using the FD calculator, you can get a clear picture of the maturity amount that you will receive at the end of your investment tenure. This will help you to plan your finances better.
- There is no limit on the number of times you can enter the interest rate and deposit term length in the Post Office FD calculator for senior citizens. By analyzing the different combinations of interest rates and deposit terms, you can arrive at the best Post Office FD for you.
What Are the Features of Post Office FD?
Various features of the FD interest calculator Post Office are as follows:
- Flexible Tenure
The Post Office FD comes in flexible tenures ranging from 1-5 years. You can choose the tenure as per your financial goals. However, you must remember that a longer tenure comes with a higher interest rate and vice versa.
- Easy to Invest
Anyone can deposit their money in a Post Office fixed deposit. There are no special criteria for this investment measure. The Post Office FD can also be opened for a minor aged above 10 years old; till he/she attains 18 years of age, their parent or legal guardian will take care of the FD.
- Minimum Amount
The minimum amount in a Post Office FD is ₹200 and there is no upper limit. However, the deposit amount is to be in multiples of ₹ 200. There can be single or joint holders in a Post Office fixed deposit account.
- Interest Rate
The Government of India revises the interest rate for Post Office FD every quarter. Usually, the Government aligns the FD rates as per the rates of government securities of matching tenure with a deviation of 0.25%.
The Post Office FD also offers the facility of a nominee. In case of the death of the deposit holder before the maturity period, the nominee will receive the full maturity amount
How to Use the Post Office FD Calculator?
You can use the Indian Post Office FD calculator by following these steps:
Step 1: Navigate to the FD calculator page.
Step 2: Enter the principal amount, interest rate and tenure.
Step 3: After you have entered the amount for all, click on proceed.
Step 4: The Post Office calculator will show the estimated maturity amount on your screen.
What Are Post Office FD Rules?
Some rules associated with Post Office fixed deposit are as follows:
- You can book the fixed deposit either via the online mode or by visiting the physical premises of your nearest Post Office.
- For deposits made through cheque, the interest will be computed from the day of cheque realization.
- You can also transfer the fixed deposit from one Post Office to another.
- You can open as many new FD accounts. There is no restriction on this.
- To open a Post Office FD account, you need to make a minimum investment of ₹200.
- On the day of maturity, you can again deposit the maturity amount into a new FD. The rate of interest of this new FD will be the prevailing interest rate.
The Post Office FD calculator is a very efficient and convenient tool which allows you to get an estimate of the maturity amount of the fixed deposit. By simply entering the related values, you can get an estimated value of the returns you can generate from your Post Office FD. Make sure to go through the terms and conditions as they can vary as per circulars issued by the Government.
Post Office FD Calculator : FAQs
Yes, you can make a premature withdrawal from the Post Office fixed deposit only after six months of FD account opening. However, in case of premature withdrawal, a penalty is charged. But there is no premature withdrawal penalty in case the nominee wants to withdraw the amount prematurely.
As per the current regulations, NRIs are debarred from operating a Post Office FD account.
The interest rates vary for every tenure. Currently, it is 6.90% for one year, and it is 7.50% for 5 years. This rate applies from 1 July 2023 to 30 September 2023.