Post Office Time Deposit (POTD), also known as Post Office Fixed Deposit (POFD), is a government-backed fixed deposit scheme offered by Indian Postal Services. Investors deposit a lump sum for a predetermined period (1, 2, 3, or 5 years) to earn guaranteed returns with simple interest calculation. It's one of the safest investment options in India for risk-averse individuals seeking capital protection.

Our POTD Calculator helps you determine the maturity amount and the interest earned on your investment. Here's how to use it:

1. Principal Amount: Enter the amount you wish to invest (minimum ₹1,000, in multiples of ₹100).
2. Tenure: Select the duration for which you want to keep the money invested: 1 Year, 2 Years, 3 Years, or 5 Years. The interest rate is fixed based on the tenure chosen and calculated as simple interest.

Understanding Your POTD Calculator Results

• Yearly Interest: The annual interest earned on your principal amount.
• Total Interest: The cumulative interest earned over the entire tenure (Yearly Interest × Number of Years).
• Total Amount: The total amount (Principal + Total Interest) you will receive at the end of the POTD tenure.

How Simple Interest Works in POTD

Unlike compound interest where interest is calculated on the accumulated amount, POTD uses simple interest calculation:

Formula: Yearly Interest = Principal × Annual Interest Rate ÷ 100

Example: For ₹1,00,000 at 7.5% per annum:

• Yearly Interest = ₹1,00,000 × 7.5 ÷ 100 = ₹7,500
• For 5 years: Total Interest = ₹7,500 × 5 = ₹37,500
• Total Amount = ₹1,00,000 + ₹37,500 = ₹1,37,500