Post Office Time Deposit Scheme: When we invest in a scheme, whether it is market-linked or non-market-linked, the first thought that comes to mind is whether we will get guaranteed returns or not? How long will it take? This is why many investors choose an investment scheme where they can get guaranteed returns and the market risk is minimal. Post Office Time Deposit Scheme or Post Office FD is one such investment scheme.
You will get this much interest every year
In the time deposit scheme, the investor is given the opportunity to make short term and long term investments. In this scheme, you can deposit money for 1 year, 2 years, 3 years and 5 years. It is most important to know how much interest you will get in this scheme. This scheme offers an annual interest rate of 6.9% (in 1 year FD), 7.0% (in 2 year FD), 7.1% (in 3 year FD) and 7.5% (in 5 year FD).
These FDs offer a fixed interest rate, but you can also double your amount in post office FD. For this, you have to make a five-year FD and take a five-year extension.
The post office fixed deposit scheme account can be extended within the stipulated period from the maturity date. One year FD can be extended within six months from the maturity date, two year FD can be extended within 12 months from the maturity period and 3 and 5 year FD can be extended within 18 months from the maturity period.
Invest 5 lakhs in this way and get 10 lakhs
If you invest in a 5-year post office FD, you will get interest at the rate of 7.5 percent. According to the post office calculator, on an investment of Rs 5,00,000, you will get an interest of Rs 2,24,974 after 5 years and your maturity amount will be Rs 7,24,974.
At the same time, if you extend this account for five years, then your interest in that period will be Rs 5,51,175 and the maturity amount will be Rs 10,51,175.
Take advantage of tax exemption too
The amount invested in a 5-year term time deposit account in the post office also gets the benefit of tax exemption under Section 80C of the Income Tax Act, 1961. Money can be withdrawn even before the maturity of the time deposit but a penalty is levied.
