Method, example and interpretation · Revised 16 October 2026
Separate growth products from income-paying schemes
A maturity balance and a stream of interest payouts are not interchangeable. Use FD or compound-interest mode for reinvested interest. Use SCSS or Post Office MIS to examine periodic income and the principal returned separately. Scheme eligibility, rates and deposit ceilings must be verified for the account opening date.
What the modes assume
FD lets you select a compounding frequency. RD deposits money monthly with a quarterly interest convention. PPF and SSY illustrations assume each annual contribution is made early enough to receive that year’s full modelled interest. NSC uses a five-year annual-compounding illustration. These are timing assumptions, not a guarantee of an account statement’s exact interest.
Payouts are not reinvested automatically
SCSS interest is shown as quarterly cash flow; its maturity principal excludes payouts already received. MIS shows monthly income and the principal at maturity. If you reinvest those payouts elsewhere, model that second investment separately rather than adding another compound return to the original account.
Check the account restrictions
MIS switches between a single and joint-account limit. SSY limits contributions to a selected period up to fifteen years and illustrates maturity twenty-one years after opening. Taxability, withdrawals, account eligibility, contribution dates and future rate changes can alter actual outcomes. Rates shown in these illustrations are assumptions and should be checked with India Post or the account provider.
Worked example
A ₹1,00,000 deposit compounded quarterly at 7% for five years.
Illustrative balance: ₹1,41,478.
Compare this reinvested-interest balance with a payout account, where the principal stays unchanged and interest reaches you earlier.
Questions about this tool
Does the calculator deduct TDS or final income tax?
No. Displayed growth and payout figures are before tax; withholding and final liability are separate questions.