Post Office’s Time Deposit Scheme Gives Bumper Returns, You Can Open an Account With ₹ 1000

Post Office Time Deposit Account: The post office runs many types of savings schemes which offer different interest rates. One such scheme is the Term Deposit Scheme or Time Deposit. It is also called Fixed Deposit or FD Account.

According to the website of India Post, interest on time deposit account is paid on an annual basis, but it is calculated every 3 months. In this, you can open an account with just Rs 1000.

Features of Post Office Time Deposit-

Tenure: Available for 1 year, 2 years, 3 years and 5 years tenure.

Interest rate (rates applicable till March 2025):

• 1 year: 6.9 per cent
• 2 years: 7.0 per cent
• 3 years: 7.1 per cent
• 5 years: 7.5 per cent (tax exemption benefit)
• Minimum investment amount: One can start investing in Post Office Time Deposit with just Rs 1000.
• Maximum investment amount: Any maximum amount can be invested in Post Office Time Deposit.
• Tax benefit: If investors invest in the Post Office Time Deposit Scheme for 5 years, then they will be given the benefit of exemption under section 80C of the IT Act.
• Premature withdrawal: Possible after 6 months, but there may be a penalty on the interest rate.
  Auto-renewal Option: Auto-renewal option available after maturity.
• Nomination Facility: You can add a nominee while opening the account.

Let’s know how much money you will get on maturity.

If investors invest in time deposit for 5 years, they are given 7.5 percent interest. If you deposit Rs 10,00,000 lakh in TD for 5 years, then on maturity, investors will get a fund of Rs 14,49,949. By investing in time deposit in 5 years, you get Rs 4,49,949 as interest.

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