Post Office FD vs Bank FD Calculator

Yes, Post Office FD has sovereign guarantee from the Government of India — your entire deposit is 100% safe regardless of amount. Bank FDs are covered by DICGC insurance only up to ₹5 lakh per bank per depositor. For amounts above ₹5 lakh, Post Office FD is significantly safer.

As of April 2026, Post Office Time Deposit rates are: 1 year — 6.9%, 2 years — 7.0%, 3 years — 7.1%, 5 years — 7.5%. The 5-year PO FD also qualifies for Section 80C tax deduction up to ₹1.5 lakh. Rates are reviewed quarterly by the government.

Yes, from April 2023, TDS is deducted on Post Office FD interest if it exceeds ₹40,000 per year (₹50,000 for senior citizens). Earlier, PO deposits were exempt from TDS. You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

No, Post Office FDs do not offer additional interest for senior citizens — rates are the same for all age groups. However, most banks offer 0.25% to 0.75% extra for senior citizens. For seniors, SCSS (Senior Citizens Savings Scheme) at post office offers 8.2% and is often a better choice than PO FD.

Post Office FD cannot be broken within 6 months. After 6 months but before 1 year, you get the Post Office Savings Account rate (4%). After 1 year, you can withdraw with a 1-2% penalty on interest. Bank FDs generally have more flexible premature withdrawal — typically 0.5-1% penalty.