Do you want to invest your money with safe and guaranteed returns? Then Post Office Time Deposit Scheme is the best option for you! In this scheme, you can invest as per your convenience from 1 to 5 years and avail attractive interest rates with tax exemption.
Salient Features of Time Deposit Scheme:
For All: Whether you are rich or have a normal income, this scheme is for every Indian citizen.
Various Options: You can open a single or joint account, which is perfect for family and individual needs.
Invest as much as you want: You can invest as much as you want, starting from a minimum of ₹1,000.
Interest Rates and Profits:
Interest rates in the time deposit scheme are fixed according to the period of investment. For example:
For 1 year: 6.8%
For 2 years: 6.9%
For 3 years: 7.0%
For 5 years: 7.5%
Most people choose the 5-year period as it gives the highest interest. If you invest ₹5 lakh, after 5 years you will get a total of ₹7,24,974, of which ₹2,24,974 will be interest.
Tax benefits:
Investing in this scheme gives you tax exemption under Section 80C of Income Tax. However, the interest will be taxable. This scheme is also very good for tax planning.
Account transfer facility:
If you keep changing places due to job or business, you can easily transfer your account from one post office to another.
Frequently Asked Questions (FAQs):
Is Post Office Time Deposit safe?
Yes, this is a government scheme, so it is completely safe.
Can anyone invest in this scheme?
Yes, any Indian citizen can invest in it. For minors, their parents can open the account.
Can I withdraw money before maturity?
Yes, but there may be some conditions and penalties for this.
Can I open an account online?
This facility is not available right now. You will have to go to the nearest post office to open an account.
Fact Check:
Interest rates may change from time to time, so check the latest rates before investing.
Tax exemptions and rules may change, so consult a financial advisor.