Post Office Scheme TD: 5 lakh lump sum deposit, guaranteed interest of 1.97 lakh with tax benefit, know scheme If you want guaranteed income without taking market risk, then Post Office Term Deposit Scheme is a is a better option.Â
There is no risk involved in investing in a post office scheme. You can do Fixed Deposit for 1, 2, 3 and 5 years in the post office. Like banks, the post office also gets the benefit of tax deduction under section 80C on FD of 5 years.
Post Office Scheme TD
6.97 lakh will be available on 5 lakh deposit
The post office is getting 6.7% interest annually on fixed deposits for five years. The interest in this scheme is calculated on quarterly basis.
If you invest Rs 5 lakh in lumpsum then in 5 years you will get a guaranteed income of Rs 6.97 lakh. In this you will get 1.97 lakh rupees from interest. That is, your total investment in 5 years will be Rs 5 lakh.
You can get FD done in the post office for 1, 2, 3 and 5 years. Annual interest is being given at 5.5 percent on one-year fixed deposit, 5.5 percent on 2-year deposit, 5.5 percent on 3-year deposit and 6.7 percent on 5-year deposit.
Tax Deduction in Section 80C ( Post Office Scheme TD )
Tax exemption is available under Section 80C of the Income Tax Act on FD of 5 years in the post office. In this your money is completely safe. You can get more than 1 FD done in the post office.
FD account can also be linked. Apart from this, you can easily transfer one of your schemes to another scheme (Post Office Term Deposit Scheme).
Withdrawals cannot be made before 6 months from the date of deposit in Post Office TD Scheme. If you close the TD account after 6 months and before 1 year, you will get the interest applicable on the post office savings account. Apart from this, if the TD of 2/3/5 years is closed after 1 year then you will get 2% less interest than the application interest.
how to open account
Getting FD in the post office is very easy. For this, you can open an account by paying check or cash. You can open an account by investing as little as Rs 1000 in it and there is no maximum amount limit. Account can be opened by providing KYC details along with the application form.
Fixed Deposit Account Interest – Post Office TD Interest Rate 2022
TD Account (Post Office Term Deposit Scheme) can be opened in any post office across India. Any individual can open this account in the name of minor or for himself or can also open a joint account to earn guaranteed interest.
Post Office TD Interest Rate 2022: 5.5% for 1 year fixed deposit, 5.5% for 2 year fixed deposit, 5.5% for 3 year fixed deposit account and 5 year fixed deposit account for 6.7%.
Post Office TD Premature Closing and Tax Benefits
Post Office Fixed Deposit Account types include 1 Year, 2 Year, 3 Year, 5 Year. Account Minimum Rs. 100 can be opened. 1000 and in multiples of Rs. No maximum investment limit.
Interest will be payable annually and no additional interest will be payable on the amount of interest which has become due for payment but has not been withdrawn by the account holder.
Annual interest can be credited to the savings account of the account holder by submitting the application. Investment under TD of 5 years is eligible for the benefit of section 80C of the Income Tax Act, 1961.
All deposits made in the Term Deposit Account are allowed to be withdrawn through TD Premature Closure (Post Office Term Deposit Scheme). The TD account is liquid irrespective of the lock-in period.
Only TD accounts with a lock-in (maturity) period of 5 years are eligible for tax benefits under section 80C of the IT Act, 1961 with effect from 1st April 2007. However, TD accounts of 1, 2 and 3 years do not get tax exemption. Under 80C!
