New Delhi: Fixed Deposit (FD) are a reliable investment choice for investors seeking guaranteed returns with low-risk appetite. Investors can open a FD account with the Post Office as well. The Post Office offers a Time Deposit scheme, also known as Post Office FD, which allows investors to make lump sum investments for fixed tenures.
Post Office Time Deposit scheme can be opened for 1 year, 2 years, 3 years and 5 years. Interest rates on this scheme range from 6.9 per cent to 7.5 per cent.
Post office TD interest rates
The highest interest rate offered by the Post Office is 7.5 per cent for the 5-year FD plan. The scheme requires a minimum investment of Rs 1,000, with subsequent investments made in multiples of Rs 100. There is no upper limit on the investment amount. Interest is calculated quarterly but payable annually.
Turn Rs 20000 salary into Rs 2 crore
Post Office FD of Rs 5 lakh
Interest under the Post Office Time Deposit scheme is compounded annually. For example, if you invest Rs 5 lakh for five years at an interest rate of 7.5 per cent, you will earn Rs 2,24,974 as interest. The maturity amount you receive will be Rs 7,24,974.
Tax Benefits of Post Office Time Deposit
Investors in the Post Office Time Deposit scheme can avail tax benefits. Investments held for a minimum of 5 years qualify for a deduction of up to Rs 1.5 lakh per annum under Section 80C of the Income Tax Act, reducing taxable liability.
Post Office Time Deposit maturity
Upon maturity, investors have the option to renew the TD account for the same tenure. Premature withdrawal is not permitted before six months. If the account is closed between 6 months and 1 year from opening, the applicable interest rate will be equivalent to that of a Savings Account, not the Time Deposit scheme.
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Post Office offers 7.5 per cent interest rate for the 5-year Fixed Deposit (FD) scheme. FD plans are also known as Term Deposit scheme in Post Office. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
