Post Office Time Deposit: The Post Office Time Deposit Scheme presents a commendable investment opportunity, offering attractive returns. This scheme allows for the establishment of a joint account with family members, enhancing its appeal.
Participants in this scheme can expect returns comparable to those of traditional bank fixed deposits. As per the official post office website, the Post Office TD scheme provides returns ranging from 6.9% to 7.5%.
Advantages of the Post Office TD Scheme include:
– The ability to initiate the scheme with a minimum investment of just Rs 1,000.
– No upper limit on the amount that can be invested.
– Investment terms available from 1 year to 5 years.
– Potential returns that surpass those of many bank fixed deposits.
– The option to open an account for children aged 10 years and above.
– Tax benefits under section 80C for investments held for 5 years.
For instance, if one invests Rs 2 lakh in the Post Office TD Scheme, the interest earned would amount to Rs 29,776.
Remember these things before you invest
Investments can be made for a duration of 5 years, with the possibility of extending the investment period. However, withdrawals are not permitted within the first 6 months. If an account is closed after 6 months but before the completion of 1 year, the interest earned will be equivalent to that of a savings account. Additionally, if an account with a tenure of 2, 3, or 5 years is closed after 1 year, the interest rate will be reduced by 2 percent.