Post Office TD Calculation: Do you want to invest money in a scheme for 5 years, where there is no risk and the income is also good?
Post Office Small Savings Schemes are the best option for guaranteed returns without risk. One of these is the superhit Time Deposit (TD) scheme of the post office. In this scheme, lump sum deposit can be made for maturity of 1, 2, 3 and 5 years. In this, interest rates on depositing money are paid on annual basis.
Know the details of interest rates-
The interest rate on post office time deposit of 1 year is 6.90 percent and on 2 years it is 7 percent. Apart from this, 7 percent interest is being given on 3 year deposits and 7.5 percent annual interest is being given on 5 year deposits. These interest rates are applicable from 1 July-30 September 2023.
₹2.25 lakh interest on ₹5 lakh in 5 years-
According to Post Office TD Calculator, if you deposit Rs 5 lakh for 5 years, the maturity amount will be Rs 7,24,974. That means, Rs 2,24,974 will be earned from interest. The deposit rates of Post Office Small Savings Schemes are reviewed every quarter by the government. This means that interest rates may change every quarter. But, in term deposits, the interest rates fixed at the time of deposit remain for the entire maturity period.
Tax deduction will be available on 5 years TD-
The benefit of tax exemption is available on TD of 5 years in post office. Under Section 80C of Income Tax, tax deduction can be claimed on investments up to Rs 1.5 lakh. Keep in mind here that the amount received on maturity in TD is taxable.
Single account and joint account are also opened under Post Office TD. Maximum 3 adults can be included in the joint account. This account can be opened with a minimum of Rs 1000. After this you can invest in it in multiples of Rs 100. There is no limit on investment in post office time deposit.