Post Office TD Premature Withdrawal Calculator

Check whether you can close your Post Office Time Deposit early, what interest rule applies — and set a reminder so you never miss the maturity date.

When you can close a Post Office TD early

A Post Office Time Deposit (TD) has strict premature-closure rules — stricter than most bank FDs:

• Before 6 months: closure is not allowed for any tenure.
• 6 months to 1 year: allowed, but interest is paid only at the Post Office Savings Account rate (currently 4%).
• After 1 year (1, 2, 3-year TDs): allowed, with interest about 2% below your TD rate for completed years, and the Savings rate for the part period.
• 5-year TD: can be closed after 6 months like the other tenures; if closed after 4 years, interest is paid at the Post Office Savings rate (a November 2023 rule change).

The penalty is in the interest, not a flat fee

Post Office TD "penalty" isn't a fixed charge — it's a lower interest rate applied to the period you held the deposit. The earlier you close, the more interest you give up. If you're only a couple of months from maturity, waiting almost always pays more than closing early — which is exactly what the calculator flags.

Why set a maturity reminder

The most common Post Office TD mistake isn't closing early — it's forgetting the maturity date and letting the deposit sit idle earning nothing, or auto-renew on terms you didn't choose. Savings Reminder emails you before maturity so you decide in time. No bank login, no OTP — you enter the dates yourself.

Rules from India Post (indiapost.gov.in). Reminder tool, not financial advice — confirm exact figures at your post office.

Frequently asked questions