Post Office Time Deposit Scheme: If you’re considering investing in the post office, here’s some valuable information. Today, we’ll discuss a specific scheme offered by the post office where you can potentially double your investment.
Currently, customers are benefiting from an interest rate of 7.5% under this scheme, effective from April 1, 2023. For instance, if you invest Rs 5 lakh in the time deposit scheme, you’ll receive Rs 7,24,974 upon maturity, with Rs 2,24,974 as interest earned and the remaining Rs 5 lakh being your initial investment.
Your investment will double in 10 years. By extending the maturity period by 5 years, your investment of Rs 5 lakh will grow to Rs 10 lakh. After 10 years, you’ll receive Rs 10,51,175, with Rs 5,51,175 as interest earned.
Post Office Time Deposit Scheme: Key Features
- You can open a fixed deposit account at your nearest post office.
- The minimum investment is Rs 1,000, and there’s no maximum limit.
- Individuals above 10 years of age can invest, while minors’ accounts are opened under parental supervision.
- You can invest for 1 year, 2 years, 3 years, or 5 years.
- Both single and joint accounts are available.
Post Office Time Deposit Scheme: Tax Benefits:
Investments up to Rs 1.5 lakh are eligible for tax exemption under Section 80C of the Income Tax Act. However, the amount received upon maturity of the FD is subject to taxation.
Additionally, the interest rates for Post Office Time Deposits are as follows:
- 6.8% for 1 year
- 6.9% for 2 years
- 7.0% for 3 years