Investors investing in Post Office Time Deposit Scheme are given the benefit of tax exemption under Section 80C of the Income Tax Act 1961 along with excellent interest.
Post Office Saving Schemes are becoming quite popular in terms of great returns and safe investment. Many saving schemes are being run here for children to the elderly. One of these special schemes helps investors earn lakhs only through interest. Yes, we are talking about the Post Office Time Deposit Scheme, in this five-year scheme, along with the money being safe, the return is also strong. Due to this, it is one of the popular return schemes.
7.5 percent interest is available
Everyone wants to save some of their earnings and invest in such a place where their money is safe as well as they can get great returns on it. In this case, now the small savings schemes run by the post office are proving to be quite popular. Talking about the Post Office Time Deposit Scheme, it gives great benefits along with tremendous interest. The interest rate on investment in this scheme is 7.5 percent.
Last year, on April 1, 2023, the interest rate on this post office time deposit scheme of five years duration was increased from 7 percent to 7.5 percent. With this interest rate, this post office scheme is one of the best savings schemes, as it is becoming popular among investors due to the guaranteed income.
You can invest for up to 5 years
Investors can invest for different tenures in this saving scheme of Post Office. Under this, money can be deposited for 1 year, 2 years, 3 years and 5 years. Investing for one year gives 6.9 percent interest, investing for 2 or 3 years gives 7 percent interest and investing in the Post Office Time Deposit Scheme for 5 years gives 7.5 percent interest. However, it takes more than five years for the customer’s investment to double.
Interest will earn more than 2 lakhs
If we look at the calculation of investors’ money doubling in Post Office Time Deposit, then suppose a customer invests Rs 5 lakh for five years and gets interest at the rate of 7.5 percent on it, then during this period he will get interest of Rs 2,24,974 on the deposit and the total maturity amount will increase to Rs 7,24,974 by adding the investment amount. That is, you can earn a guaranteed income of lakhs of rupees by investing in it.
Tax exemption is also available
In the Time Deposit scheme, the customer is also given the benefit of tax exemption under Section 80C of the Income Tax Department Act 1961. Single account or joint account can be opened in this saving scheme. The account of a child above 10 years of age can be opened through his family member. In this, an account can be opened with a minimum of Rs 1,000. In which interest money is added on an annual basis.
