Which tenure qualifies for 80C?

Only the five year deposit. The shorter tenures give no deduction, which for a taxpayer at thirty percent is a much larger difference than the rate gap between them.

Finance & Loansgovt schemesIndia only

Post Office Time Deposit Calculator

Post Office Time Deposit maturity by tenure. The five year deposit qualifies for 80C deduction and the shorter tenures do not, which is usually the deciding factor.

Also called: post office fd calculator, national savings time deposit.

Maturity value

₹7,24,974

₹7,24,974 after 5 year(s), from 5,00,000. Interest of ₹2,24,974 compounds quarterly but is paid annually, which is why the effective yield is 7.71%. The five year deposit qualifies for deduction under section 80C.

Interest earned

₹2,24,974

Effective annual yield

7.71%

Interest paid each year

₹44,995

Value after one year

₹5,38,568

On tax treatment

The five year deposit qualifies for deduction under section 80C.

On the rate

Small savings rates are revised quarterly by the government. Check the current quarter rate before relying on this.

How this is calculated

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Interest compounds quarterly and is paid annually. The five year time deposit qualifies for deduction under section 80C, which the one, two and three year tenures do not, so the effective post-tax return on the five year variant is considerably better than the rate difference suggests. Rates differ by tenure and are revised quarterly by the government.

compounded quarterly, paid annually

n: Years

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

five lakh for five years

Amount deposited: ₹5,00,000
Tenure: 5 years
Rate for that tenure: 7.5%

Maturity value₹7,24,974

(1 + 0.075/4)^4 - 1

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a one year deposit gets no 80C

Amount deposited: ₹5,00,000
Tenure: 1 year
Rate for that tenure: 6.9%

Maturity value₹5,35,403

boundary

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Method and limits

What it assumes

Quarterly compounding, as the scheme rules specify.

What it deliberately does not model

Premature withdrawal is permitted after six months at a reduced rate.
Interest is fully taxable in all cases, including the five year variant.

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Frequently asked questions

Which tenure qualifies for 80C?: Only the five year deposit. The shorter tenures give no deduction, which for a taxpayer at thirty percent is a much larger difference than the rate gap between them.