Post Office Fixed Deposit: For Indian investors, the search for safe and profitable investment options has always been important. In this case, post office Investment Schemes prove to be a great option.
In particular, Post Office Fixed Deposit (FD) is not only safe but also offers great interest rates. Let’s know how you can double your money by investing in post office FD.
Benefits of Post Office FD
Security: Being a government scheme, post office FD is completely safe.
Attractive interest rates: You get comparatively higher interest on post office FD than banks.
Tax benefits: Money invested on a 5-year fixed deposit is exempted under the Income Tax Act.
Minimum investment: You can open a post office FD account with just ₹ 1,000.
Maturity: You can make FD for a period of 1, 2, 3, or 5 years. On maturity, you will receive the principal amount and interest.
Get maximum benefit from great interest rates
Post office FD offers attractive interest rates compared to other financial institutions. Currently, you can open FDs for a period of 1 to 5 years. The interest rates offered on these FDs are as follows:
1 year: 6.9% annual interest
2 years: 7.0% annual interest
3 years: 7.1% annual interest
5 years: 7.5% annual interest (highest interest rate)
For example, if you deposit an amount of ₹5 lakh in a post office FD for 5 years, you will receive interest of ₹2,24,974 at an interest rate of 7.5%.
That is, after 5 years your total amount will be ₹7,24,974. Now if you deposit this amount again for 5 years, you will get additional interest of ₹3,26,201 at an interest rate of 7.5%. So, in total, your amount will grow to ₹10,51,175 in 10 years, which is more than double your original investment.
Easy investment process and government guarantee
Opening a post office FD is very easy. You can open it online or through your nearest post office branch. You can open an FD account with just ₹1,000 in multiples of ₹100.
The most important thing is that post office FD is backed by the government, which makes it a completely safe investment.
Invest with tax benefits
If you choose a tax-saving FD for 5 years, you can get the benefit of exemption under the Income Tax Act. This helps in reducing your tax liability.
How to open a post office FD account
You can open a post office FD account online or offline.
Online
Log in to the e-banking (https://ebanking.indiapost.gov.in) website of India Post.
Upload the required documents, like a savings account, PAN card, KYC documents, etc.
After the application process is completed, verification will be done. Your FD account will be opened after successful verification.
Offline
Visit the nearest post office branch with all your required documents.
Get information about opening a post office FD from the concerned officer and follow the instructions. Post office FD offers safe investments as well as attractive interest rates. It can prove to be a great investment option to meet your long-term financial goals.