Post Office Savings Account Calculator

How the Post Office Savings Account Calculator works

The calculator applies the savings rate of 4% a year to your average balance. The government sets small savings rates every quarter. This guide uses the rates the calculator uses, notified for Jul–Sep 2026.

The rate is floating, so it can change from quarter to quarter.

Interest is taxable, subject to the Section 80TTA and 80TTB limits.

Formula

Yearly interest = Average balance × rate ÷ 100

• Rate = 4% a year
• Monthly interest = yearly interest ÷ 12

Worked example: Average balance of ₹50,000

1. Yearly interest = ₹50,000 × 4 ÷ 100 = ₹2,000.
2. Monthly interest = ₹2,000 ÷ 12 = ₹167.
3. Your balance stays ₹50,000, and you can withdraw it when you need it.

Tips

• Use the account to park cash you may need soon, not for long-term growth.
• Money you will not touch for a year or more can earn more in a Time Deposit, at 6.9% to 7.5%.
• Keep an emergency fund here and move the surplus to a TD or RD.

Want to know if your whole plan is on track? Get your free money score in about two minutes. No PAN, no Aadhaar.

About the Post Office Savings Account Calculator

Free Post Office Savings Account calculator. Estimate yearly and monthly interest on your balance at the notified 4% p.a. rate, and the tax on it.

Frequently asked questions

What is the Post Office Savings Account interest rate?

The notified rate for Jul–Sep 2026 is 4% p.a. Interest is taxable subject to §80TTA/80TTB limits.

What is the minimum balance?

₹500. An account below it can be charged a maintenance fee.

Is Post Office savings interest tax-free?

It is taxable, but savings interest up to ₹10,000 a year can be deducted under Section 80TTA in the old regime (₹50,000 under 80TTB for senior citizens).