The government is running some schemes for all sections of the country. Many schemes of the post office benefit the poor as well as the middle class. Post office time deposit is one such small saving scheme. Any citizen can invest in the post office scheme for 5 years, in which investors get an interest of 7.50 percent. Investors can avail tax exemption of up to Rs 1.50 lakh under 80C.

In the government scheme Post Office Time Deposit, the entire amount has to be deposited at once. Interest keeps getting added to it from time to time. This scheme is also called Post Office FD. Under Time Deposit, interest is offered for four types of periods.

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How much interest will be received on which period?

Under Post Office Time Deposit, interest is available at the rate of 6.9% for a period of 1 year.

• Interest is available at the rate of 7.0% for a period of 2 years.
• Interest is given at the rate of 7.1% for a period of 3 years.
• Under the Post Office Time Deposit Scheme for 5 years, an interest of 7.5% is available.
• A single or three persons can open a Post Office Time Deposit account simultaneously.

Under Post Office TD, 3 people can open an account singly or jointly. In this scheme, a minimum investment of Rs 1000 can be made in multiples of Rs 100. There is no limit on the maximum amount to be invested. Under this scheme, a rebate of Rs 1.5 lakh per annum is given under Income Tax Section 80C for a period of five years. Under this scheme, you cannot withdraw money before six months.

You will earn Rs 4.5 lakh from interest alone

If you save Rs 2,778 every day under this scheme and invest at least Rs 10 lakh at once after a year, you will earn Rs 4,49,948 in 5 years from interest alone. The total amount in five years will be Rs 14,49,948.

The post Post Office: By saving just Rs 2,778, you will get Rs 14,49,948 in 5 years. Details here first appeared on Rightsofemployees.com.

Benefits of Post Office FD

Investing in Post Office FD gives you many benefits. The most important thing is that in this you will get government guarantee along with returns. Here you get the facility of interest on quarterly basis. Investing in an FD at the post office is very easy. You can get FD done in the post office for different tenures including 1, 2, 3 or 5 years.

Indian Post Office Department, Ministry of Communications, Government of India offers fixed deposit accounts that offer attractive interest rates with tenors ranging from 1 year to 5 years. Interest is payable annually, with a minimum deposit amount of Rs 1,000 and no maximum limit.

Post Office Fixed Deposit Rates

deposit period Post Office FD Rates (per annum)
1 year 5.50%
2 years 5.50%
3 year 5.50%
5 years 6.70%

Post Office FD Rate Interest rates are subject to change as per requirement. These interest rates are effective from 1st April 2020.

5 Year Fixed Deposit Rates for Tax Saving Post Office 

If you open a Fixed Deposit (FD Account) with the Post Office for a period of 5 years, you will be eligible to claim tax benefits under Section 80C of the Income Tax Act, 1961.

tenure Regular Post Office FD Rates (per annum)
60 months 6.70%

Post Office FD Interest Rates are subject to change as per requirement. These interest rates are effective from 1st April 2020.

Post Office Time Deposit Account 

Post Office Fixed Deposit Account (TD) account, also known as Post Office Fixed Deposit (FD) account can be opened with a minimum of Rs 1,000 in multiples of Rs 100 without any limit .

Key Features of Post Office FD Interest Rates

Highest Post Office TD Interest Rate : 6.70% per annum for 5 years tenure
Range of interest rates: 5.50% p.a. to 6.70% p.a.
Rate of interest for tenure of 1 year: 5.50% p.a.
Rate of interest for tenure of 2 years: 5.50% p.a.
Rate of interest for tenure of 3 years: 5.50% p.a.

Who Can Open a Fixed Deposit Account

Fixed Deposit Account can be opened in India Post:

a single adult
Maximum three adults (in case of joint account)
A minor who is more than 10 years of age
A guardian on behalf of a person who is a minor or a person of unsound mind

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