Post Office Scheme: Many savings schemes of the post office give more returns than other government investment schemes. If you are also thinking of investing money somewhere, then you should invest money in Post Office Time Deposits. It has many advantages.
New Delhi. Everyone wants to invest money in such a place, from where he gets good returns as well as his money is safe. Many investors prefer such an investment plan in which there is no risk of losing money. This is the reason why people like the schemes run by the Indian Post Office very much. Time Deposit Scheme run by the post office is one such great scheme.
This scheme is also called Post Office FD. Recently, the government had increased the interest rates of the time deposit scheme by 30 basis points. Now in this scheme an investor is being given interest at an annual rate of up to 6.7. The special feature of this scheme is that in this the investor is given the opportunity to make short term and long term investments. In this scheme, a person can deposit money for 1 year, 2 years, 3 years and 5 years.
Who can open account?
Any Indian citizen can open his account in Post Office Time Deposit Scheme. Not only this, 3 adults together can also open a joint account. Parents can also open a time deposit account in the name of children above the age of 10 years. An account can also be opened by investing Rs 1,000 in it.
Interest up to 6.7%
Different interest rates have been prescribed for different tenure investments in Post Office Time Deposits. If an investor deposits money in this scheme for 5 years, then he will get interest at the rate of 6.7 percent per annum. The investor will be given interest at the rate of 5.8 per cent on making a time deposit of three years. Similarly, 5.7 percent interest is being given on the time deposit of 2 years. The lowest interest i.e. 5.5 percent is being given on one year time deposit.
Tax exemption will also be available
The amount invested in a time deposit account with a tenure of 5 years in the post office also gets the benefit of tax exemption under section 80C of the Income Tax Act, 1961. However, the tax benefit is not being waived on deposits of less than this tenor. Money can be withdrawn even before the maturity of the time deposit, but there is a penalty.
