Post Office Scheme: If you’re looking for a risk-free investment with excellent returns, the Post Office Time Deposit Scheme could be a good option. Learn more about this scheme.
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Post Office Time Deposit Scheme: Given today’s rising inflation, everyone is saving some portion of their income for their future. Everyone wants to invest their money in a place where it is completely safe and also provides good returns. If you too want to invest without any risk, then the government schemes of the Post Office can be a better option for you.
One of these is the Post Office Time Deposit Scheme. In this, investors get the benefit of tax exemption along with excellent interest. The special thing is that by investing only Rs 2 lakh in this scheme, one can earn up to Rs 90 thousand.
What is the Post Office Time Deposit Scheme?
This scheme is a government savings scheme in which money is deposited for a fixed period of time. This scheme is considered completely safe because it is administered by the government. In this scheme…
The risk is very low.
Fast returns are also guaranteed.
Tax exemptions are also available.
How much interest is earned?
The government currently offers interest rates on this scheme for different tenures. The current interest rates are as follows:
1 year – 6.9 percent interest
2 years – 7 percent interest
3 years – 7 percent interest
5 years – 7.5 percent interest
The highest interest is earned on a 5-year maturity.
How much can you start investing with?
Investing in this scheme can start with just ₹1,000.
There is no maximum investment limit.
The more you invest, the more interest you will earn.
Accounts can also be opened in the name of children over 10 years of age.
How can you earn ₹90,000 on ₹2 lakh?
If you deposit ₹2 lakh in this scheme for 5 years, you’ll get a good return at 7.5 percent annual interest.
Understand the calculation
Total investment: ₹200,000
Term: 5 years
Interest rate: 7.5 percent
This means that after 5 years, investors will receive approximately ₹289,990.
This means they’ll earn approximately ₹89,990 from interest alone.
You’ll also benefit from tax benefits.
Investing in the Post Office Time Deposit Scheme also provides tax benefits under Section 80C of the Income Tax Act.
Both single and joint accounts can be opened.
Interest is compounded annually.
Know these things before investing.
Withdrawals cannot be made before the initial six months.
Premature withdrawals may incur a penalty of up to 1%.
Staying invested for the stipulated period provides greater returns.
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