New Delhi: Fixed deposit is a good investment option for investors looking for guaranteed return. Post Office provides Time deposit scheme to investors, also known as Post Office FD. Here you can make a lump sum investment. Post Office Time Deposit scheme can be opened for offers four tenure options: 1 year, 2 years, 3 years, and 5 years, with interest rates ranging from 6.9 per cent to 7.5 per cent. Joint accounts with up to three persons are permitted under the Post Office TD. Let’s calculate how much interest will an investor earn on maturity in Post office FD.
Post Office FD 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. Here, Interest is payable annually but calculated quarterly.
How much interest you will earn?
Interest under the Post Office Time Deposit scheme is payable annually. If you invest Rs 5 lakh for five years at the current 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.
Amount
Interest in 5 years
Maturity amount
₹ 10,000
₹ 4,499
₹ 14,499
₹ 50,000
₹ 22,497
₹72,497
₹1,00,000
₹44,995
₹1,44,995
₹2,00,000
₹89,990
₹2,89,990
₹3,00,000
₹1,34,984
₹4,34,984
₹4,00,000
₹1,79,979
₹5,79,979
₹5,00,000
₹2,24,974
₹7,24,974
Tax Benefits of Post Office Time Deposit
Investors in the Post Office Time Deposit scheme are eligible for 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, which reduces the taxable liability.
Other Details
Upon maturity, you have the option to extend the TD account for the same tenure for which it was originally opened. Premature withdrawal is not allowed before six months. If you choose to close the account 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 TD: Post Office Fixed Deposit (FD) scheme is available for 5 teunre – 1 year, 2 years, 3 years, and 5 years, with interest rates ranging from 6.9 per cent to 7.5 per cent. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
