Post Office TD: If you want a guaranteed return on a lump sum deposit without taking any risk, then the term deposit scheme of the post office is a good option.
From April 1, 2023, 7.5 percent interest is being received annually on the Post Office Time Deposit Account of 5 years. In this scheme, interest rates are paid on an annual basis. However, the interest is compounded on a quarterly basis. In the 5-year term deposit scheme of the post office, the account holder also gets the benefit of tax deduction up to 1.5 lakhs under section 80C of income tax.
Apart from 5 years, you can invest in post office term deposits with maturity of 1, 2 and 3 years. In this scheme, after maturity, the deposit option is available again for the same period.
Post Office: Guaranteed 10 lakhs on lump sum deposit of 5 lakhs
The customer is getting 7.5 percent interest from April 1, 2023, on 5-year FD in the post office. According to the Post Office FD Calculator 2023, if a deposit of Rs 5 lakh is made, then the regular customer will get Rs 7,24,974 on maturity. In this, Rs 2,24,974 will be earned from interest. After maturity, this scheme can be extended for five more years. In this way, a lump sum deposit of Rs 5 lakh will grow to Rs 10,51,175 in 10 years. In this, there will be an income of Rs 5,51,175 from interest. That is, in 10 years, your investment here is guaranteed to double.
Post Office TD: Review of interest rates every quarter
Single account and joint account are also opened under post office time deposit. A maximum of 3 adults can be included in a joint account. This account can be opened with a minimum of Rs 1000. After this you can invest in it in multiples of Rs.100. There is no investment limit in Post Office TD. The Finance Ministry reviews the interest rates on small savings every quarter.
Post Office TD: Benefit of tax deduction
The benefit of tax exemption is available on 5 years FD in the post office. Tax deduction can be claimed on investment up to Rs 1.5 lakh under section 80C of income tax. Keep in mind here that the amount received on maturity in FD is taxable. Post Office TD is getting 6.8 percent interest for 1 year, 6.9 percent for 2 years and 7.0 percent for 3 years. In this scheme, the interest rates are calculated on a quarterly basis, but the payment is done on an annual basis.
