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Post Office Super Scheme: Deposit 5 Lakhs and Get 2.25 Lakhs as Interest Only, Check Out the Details

Post Office Time Deposit Scheme: The Post Office offers various small saving schemes, including an excellent option for investors seeking fixed income schemes: the India Post Time Deposit Scheme.

Similar to a bank’s fixed deposit, this scheme allows individuals to deposit money for four different tenures. Post Office Time Deposit (POTD) can be opened for durations of 1 year, 2 years, 3 years, and 5 years. The interest is calculated quarterly but paid annually.

Earn Up to 7.5% Interest with Post Office Time Deposit

The India Post offers an attractive opportunity for investors seeking fixed income through its Post Office Time Deposit scheme. As of April 1, the interest rates have been revised, providing 6.8% interest for a 1-year deposit, 6.9% for a 2-year deposit, 7% for a 3-year deposit, and an enticing 7.5% for a 5-year deposit. With a minimum investment of Rs 1000, there is no maximum investment limit.

Get Rs 2.25 Lakh Interest on a 5 Lakh Deposit

Investing in the Post Office Time Deposit scheme for 5 years also allows for tax deductions under section 80C of the Income Tax Act. Using the Post Office Calculator, depositing Rs 5 lakh for 5 years would yield an interest of Rs 2,24,974. The scheme offers an annual average return, known as CAGR, of 7.71%. Upon completion of the five-year period, the principal amount of Rs 5 lakh will also be returned.

Reasons to Choose Post Office Time Deposit

  1. Similar to a bank fixed deposit, the Post Office Time Deposit account offers flexibility in choosing durations of 1, 2, 3, and 5 years.
  2. It provides a minimum interest rate of 6.8% and a maximum interest rate of 7.5%, which is higher than the average returns offered by banks.
  3. The interest rates for Post Office Time Deposit are revised quarterly, while bank fixed deposit rates are dependent on the Reserve Bank’s repo rate, which is reviewed every two months.
  4. Premature closure of the Post Office Time Deposit account is allowed.
  5. The account can be extended within a fixed period, and in times of need, it can be used as collateral to arrange emergency funds.

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