If you are thinking of such an investment, which is completely safe and also gives good returns, then the time deposit scheme of the post office is a great option.
The returns in time deposits are also good, you will get the benefit of tax exemption, good money will come in the form of interest every year and after maturity you will also get the money back. Let’s know the complete details about it.
According to the post office time deposit calculator, by depositing only Rs 1 lakh in this account, you will get a total of Rs 41500 as interest. Let us know about this scheme in full detail.
Post Office Time Deposit is like the fixed deposit scheme of the post office. According to the data available on the India Post website, it can be opened for 1 year, 2 years, 3 years and 5 years.
Interest is paid on an annual basis and calculated on a quarterly basis. A minimum investment of Rs.1000 and thereafter in multiples of Rs.100 can be made.
How much interest for what period
The interest rate on 1-year time deposit is currently 6.6 per cent, 6.8 per cent for 2 years, 6.9 per cent for 3 years and 7 per cent for 5 years. If an investor deposits in a time deposit of 5 years, then he will also get tax exemption under section 80C. Under section 80C, the benefit of deduction up to Rs 1.5 lakh is available in a financial year. The interest will be paid on an annual basis and the money will be transferred directly to the post office account.
Total interest of Rs 41478 in 5 years
According to the Post Office FD Calculator, if an investor deposits Rs 1 lakh in a time deposit account for 5 years, then at the current rate of 7 per cent, he will get a total of Rs 41478 as interest in five years. After five years, when the scheme is completed, he will get this money back on the savings account.
