Post Office Time Deposit: Investors can invest in Post Office Time Deposit account for a period of 1, 2, 3 or 5 years. On maturity, the fixed deposit can be extended for one year. Both single and joint accounts can be opened under the Time Deposit Account Scheme with a maximum of 3 adults joining the joint account.
Post Office Time Deposit: One of the popular return schemes and safe, guaranteed and preferred by small investors is the 5-year Post Office Time Deposit Account. Post Office Time Deposit is one of the best options for those who want guaranteed income and do not want to take risks. The government has increased the post office TD interest rate from 7 to 7.5 percent per annum for a period of 5 years from April 1, 2023.
Investors can invest in Post Office Time Deposit account for a period of 1, 2, 3 or 5 years. On maturity, the fixed deposit can be extended for one year. Both single and joint accounts can be opened under the Time Deposit Account Scheme with a maximum of 3 adults joining the joint account. The account can be opened with a minimum investment of Rs 1000. There is no limit for investing in Post Office TD.
much interest will be received?
At 7.5% interest rate, if a person invests Rs 5 lakh for 5 years, he will get Rs 2,24,974 as interest and a total of Rs 7,24,974 on maturity. Earlier, at 7 percent interest rate, investors used to get around Rs 2,07,000. Therefore, the rate increase has led to an increase in such deposits by approximately Rs 18,000.
Interest on post office TD account is paid annually. On submission of the application, the annual interest is deposited in the savings account of the account holder. Investments made for 5 year post office time deposit accounts are eligible for exemption under Section 80C of the Income Tax Act, 1961.
