Post Office scheme TD: If you want guaranteed income without taking market risk, then the term deposit scheme of the post office is a better option.
Post Office scheme TD: If you want guaranteed income without taking market risk, then the term deposit scheme of the post office is a better option. There is no risk involved in investing in the post office scheme. In the post office, you can make a fixed deposit for 1, 2, 3 and 5 years. Like banks, on FD of 5 years, the post office also gets the benefit of tax deduction under section 80C.
6.97 lakh will be available on 5 lakh deposit
The five-year term deposit in the post office is getting 6.7% interest annually. The calculation of interest in this scheme is done on quarterly basis. If you invest Rs 5 lakh in lumpsum, then in 5 years you will have a guaranteed income of Rs 6.97 lakh. In this you will get 1.97 lakh rupees from interest. That is, your total investment in 5 years will be Rs 5 lakh.
You can get FD for 1, 2, 3 and 5 years in the post office. Interest is being paid annually on one-year term deposits of 5.5 percent, on 2-year deposits of 5.5 percent, on 3-year deposits, 5.5 percent and on 5-year deposits, 6.7 percent.
Tax deduction in section 80C
Tax deduction is available under section 80C of the Income Tax Act on FD of 5 years in the post office. In this your money is completely safe. You can make more than 1 FD in the post office. FD account can also be combined. Apart from this, you can easily transfer one of your schemes to another scheme.
Withdrawals cannot be made before 6 months from the date of deposit in the post office deposit. If you close the TD account after 6 months and before 1 year, then you will get the applicable interest on the savings account of the post office. Apart from this, if the TD of 2/3/5 years is closed after 1 year, then you will get 2% less interest than the application interest.
How to open account
Getting an FD in the Post Office is very easy. For this, you can open an account by giving check or cash. You can open an account by investing at least 1000 rupees in it and there is no limit on the maximum amount. Account can be opened by providing KYC details along with the application form.
