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Post Office Time Deposit: Post Office Time Deposit Scheme is a very attractive investment option, which allows investors to invest money safely. The special attraction of this scheme is that 7.5 percent interest is available on five-year investment. This scheme is suitable for investors of different age groups, the money invested in it is safe and you are also assured of good returns.
Another big benefit of this scheme is that you also get the benefit of tax exemption, which increases your total savings. In which different interest rates are applicable for different terms. 6.9 percent interest will be available for 1 year, 7 percent interest on 3 year maturity and 7.5 percent interest on 5 year maturity.
50% return on investment of Rs 5 lakh
When an investor invests Rs. 5 lakh in this scheme, at the end of five years he gets interest at the rate of 7.5 percent per annum. That means every year Rs. 7.5 percent interest is received on the investment. At the end of five years, a total interest of Rs. 2,24,974 is payable. So, an investment of Rs. 5 lakh gives an investor a return of about 50 percent at the end of five years. The total capital is Rs. 724974.
Tax exemption benefits
Investors get many benefits by investing in the Post Office Time Deposit Scheme, one of the important benefits of which is tax exemption under Section 80C of the Income Tax Act, 1961. This means that if you invest in this scheme, the amount can be deducted from your total income, which will not be taxed. You can open a single or joint account under this scheme.
Investment Process
Minimum Investment: Rs. 1,000
Maximum investment: There is no limit, the more you invest the more interest you will get.
Post Office Time Deposit Scheme is a safe and attractive investment option, which offers both good returns and tax benefits. If you want to grow your savings then this scheme can be a great option.