Post Office Time Deposit Account: If you are an investor with fixed returns, then the post office operates many schemes. The name of a scheme in that is Time Deposit. This is a great plan by India Post.
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In this scheme, depositors get bumper interest up to 7.5 percent. Apart from this, it also helps in saving tax. Broadly speaking, if you deposit Rs 2 lakh lump sum in this scheme, then you will get around Rs 90 thousand as interest. Apart from this, the principal amount of 2 lakh will also be returned on completion of time. Let us give complete information about this scheme.
Maturity is of 1-5 years
According to the information available on India Post’s website, Post Office Time Deposit Account can be opened for 4 different tenures. Interest rate is 6.8% for 1 year, 6.9% for 2 years, 7% for 3 years and 7.5% for 5 years. Interest is paid annually and calculated quarterly. A minimum investment of Rs 1000 can be made. Beyond that, investments can be made in multiples of Rs.100.
90 thousand will be given only as interest
According to the Post Office Time Deposit Calculator, if an investor deposits Rs 2 lakh in this scheme for 5 years, then he will get a total of Rs 89990 as interest. On completion of the period of five years, he will also get back the principal amount of Rs 2 lakh.
Tax benefit is available on time deposit of 5 years
If the Post Office Time Deposit account is opened for 5 years, then tax benefit is also available on it. Deduction can be availed under section 80C on the investment amount. Talking about other features of this scheme, it can be opened single or joint. Pre-mature closure is possible only after at least 6 months if the investment is made once.
Investors can open any number of accounts
If an investor wants to extend the Post Office Time Deposit account, then after maturity, he can extend it for the same time period. An investor can open any number of accounts in his name. One important thing is that even if you do not withdraw the interest amount received on annual basis, it will remain in the account like dead money. There is no separate interest on this.
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