look news india
Personal Finance: Those who want to make safe investments can avail more than 7 percent interest by investing in these government schemes apart from bank FDs. There are many government schemes issued by the post office, in which you can avail attractive interest at the end of maturity along with safe investment. Apart from this, you also get the benefit of tax exemption.
Under the small savings scheme, you can earn huge interest by investing a lump sum in the Post Office Time Deposit (Post Office TD) scheme. This scheme, known as Post Office FD, has four types of maturity periods.
rate of interest
Post Office Time Deposit offers 6.9% interest for a period of 1 year
7.0% interest for two year fixed deposit period
Term Deposit Interest on 3 Year Maturity 7.1%
7.5% interest on time deposit scheme for 5 years
Benefits of the scheme
Under Post Office Time Deposit, a minimum investment of Rs. 1000 can be made through a joint account or a single account. There is no limit on the maximum amount. This scheme gives a deduction of Rs 1.5 lakh annually under Section 80C of Income Tax for a period of five years. Under this scheme, you cannot withdraw money before six months.
4.5 lakh interest on investment of 10 lakh
Suppose, according to Paisabazaar's Post Office FD calculator, you have Rs. 10 lakh invested under Post Office Time Deposit, you will get Rs. 4,49,948 as interest. In five years, a total capital of Rs. 14,49,948 will be raised.
