If you are looking for better returns with a safe investment, the Post Office offers many attractive schemes. Like banks, you can also make fixed deposits in the Post Office. Several Post Office schemes provide higher interest rates compared to banks. Investing in the Post Office is simple, as you can open a savings account with just ₹500.
The Time Deposit Account is currently one of the best schemes offered by the Post Office. It provides interest rates ranging from 6.9% to 7.5%, which are significantly higher than most banks. You can open a Time Deposit (TD) account at the Post Office for as little as ₹1,000. The process to open this account is straightforward, allowing you to deposit money for durations ranging from 1 to 5 years. To start, you simply need to visit your nearest Post Office. Moreover, there is no maximum investment limit for this scheme.
What is the Post Office Time Deposit Scheme?
Under the Time Deposit Account offered by the Post Office, the following interest rates are applicable:
- 6.9% interest for a deposit term of 1 year
- 7.0% interest for a deposit term of 2 years
- 7.1% interest for a deposit term of 3 years
- 7.5% interest for a deposit term of 5 years
The interest is calculated quarterly but paid annually. This scheme offers nearly double the interest compared to bank savings accounts.
Example of Returns on Post Office FD
If you invest ₹5 lakh in a Time Deposit Account for 5 years, you will earn interest at the rate of 7.5% per annum. After 5 years, your total maturity amount will be ₹7,24,974, which includes ₹2,24,974 as interest.
Double Your Investment with Long-Term FD
If you extend the FD for another 5 years (a total of 10 years), the returns will significantly increase. The total interest accrued will be ₹5,51,175, and you will receive a final amount of ₹10,51,175 after 10 years. This amount is more than double your initial investment.
Opening an Account in Your Child’s Name
Parents can open an account in their child’s name. If the child is over 10 years old, they can operate the account themselves. You can open as many accounts as you want under this scheme, and there is also an option to open a joint account. Additionally, a joint account can be converted into a single account whenever you wish.
National Savings Certificate (NSC)
The National Savings Certificate (NSC) offers a 7.7% return on a 5-year investment. It also provides tax exemption under Section 80C of the Income Tax Act. However, there is a 5-year lock-in period, meaning you cannot withdraw the money before that time.
Money Doubles in 115 Months
With the Kisan Vikas Patra (KVP), your investment will double in 115 months (9 years 7 months). The current interest rate for KVP is 7.5% per annum, as set by the government.
Disclaimer: For any financial investment anywhere on your responsibility, Times Bull will not be responsible for it.