Post Office Time Deposit : Earn ₹4.5 Lakh in 5 Years – After the recent repo rate cut by the Reserve Bank of India, the demand for investment options that offer safe and stable returns has again increased. In such an environment, the Post Office Time Deposit Scheme has emerged as a reliable option. This scheme not only gives guaranteed returns, but is also considered safer than bank FDs, as it is backed by the government.
Post Office Time Deposit : Earn ₹4.5 Lakh in 5 Years
There are four investment options available in Post Office FD ( Fixed Deposit ) , in which attractive interest rates have been fixed for different periods. Due to these options, this scheme offers better liquidity, that is, it is also easy to withdraw money when needed. However, the benefit of tax exemption is available only in one special option. Let us understand this scheme in detail.
4 options for investing in Post Office FD
1 year FD : 6.9% annual interest
2 year FD : 7.0% annual interest
3 year FD : 7.1% annual interest
5 year FD : 7.5% annual interest
Post Office Time Deposit Profit Table – ₹10 Lakh Investment
| Tenure | Interest Rate | Deposit Amount | Maturity Amount | Total Profit (Interest Earned) |
|---|---|---|---|---|
| 1 Year | 6.9% | ₹10,00,000 | ₹10,70,806 | ₹70,806 |
| 2 Years | 7.0% | ₹10,00,000 | ₹11,48,882 | ₹1,48,882 |
| 3 Years | 7.1% | ₹10,00,000 | ₹12,35,075 | ₹2,35,075 |
| 5 Years | 7.5% | ₹10,00,000 | ₹14,49,948 | ₹4,49,948 |
Tax Benefits and TDS Rules on 5-Year Post Office FD
An amount up to Rs 1.50 lakh invested in 5-year FD ( Fixed Deposit ) is tax exempted under 80C. But if the interest income is 40 thousand or more, then TDS will be deducted. The limit for senior citizens is 50 thousand.
Key Features and Benefits of Post Office Time Deposit Scheme
If you want an investment that is safe, liquid and also gives tax benefits, then the Post Office Time Deposit Scheme is perfect for you. It has the option of 1, 2, 3 and 5 year FDs, and if you want, you can open more than one account. There is also a facility of joint account, in which up to three adults can join.
You can start with just Rs 1000 and there is no limit on the maximum deposit. Tax exemption is also available on 5-year FD ( Fixed Deposit ) under Section 80C. The special thing is that you can take a loan by mortgaging this account, and if needed, you can also transfer it from one post office to another.
Know Why Post Office Time Deposit is Safer Than Bank FD?
If we talk about security, then the Post Office Time Deposit Scheme leaves Bank FD behind because here you get direct government guarantee on both your deposit capital and the interest received on it. That is, the risk is zero. On the other hand, the limit of security is fixed in bank FD ( Fixed Deposit ) .
Under the rules of DICGC, only an amount up to Rs 5 lakh (including interest) is considered safe. This means that if the bank collapses, you may lose more than Rs 5 lakh from your pocket. But in Post Office Time Deposit , the government itself is the guarantor, so the investment is certain.
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