Post Office Time Deposit: The post office has several schemes for small savings, including the facility of FD. Like the bank, you can also FD in the post office. This scheme is available in the post office in the name of time deposit, in which you can deposit money for 1 year, 2 years, 3 years and 5 years. The advantage is that here the interest rate on FD is higher than the bank. Under the post office time deposit, 6.7 percent interest is being received annually on 5-year deposits. If you also want to take advantage of this scheme, then every detail should be known about it.
Interest rates
Term interest
1 year FD 5.5%
2-year FD 5.5%
3-year FD 5.5%
5 year FD 6.7%
How much will you get in 5 years on a deposit of 5 lakhs
Deposit: 5 lakhs
Rate of Interest: 6.7% per annum
Maturity period: 5 years
Amount on Maturity: 6,91,500
Interest Gain: 1,91,500
According to the 6.7 percent annual interest rate, it takes about 10.74 years or about 129 months to double the amount deposited in the post office.
Scheme Features
- Anyone can open a single account.
- Joint account can be opened with 3 adult.
- A parent can open an account in the name of a child over 10 years of age.
- The biggest advantage of this scheme is that while there is a guarantee of security on the amount up to Rs 5 lakh deposited in banks, 100% of your investment in the post office is guaranteed.
- A time deposit account can be opened in a post office with a minimum of 1000 rupees. There is no limit to the maximum amount to be deposited.
- Under the scheme, as many accounts will be opened as possible. The time deposit holder can get his fund back in the Emergency before maturity. However, for this, the first deposit in the account should be completed for 6 months.
- Investment made for 5 years in this scheme is eligible for tax benefit and can be exempted under Section 80C of Income Tax Act 1961.
- There is also the facility of nomination at the time of opening the account or later.
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Interest will also come in savings account
If you do not want to go for interest every year, then you can give instructions to the post office that the annual interest be transferred to your post office savings account. The advantage of this is that even on deposits here, you will get interest at 4% per annum. This facility comes with POTDs of 2, 3 or 5 years duration.