Post Office’s Time Deposit Scheme: By investing in this scheme, you can get more interest than the FD of banks

Jyoti — Wed, 11 Jun 2025 12:10:25 +0000

The Reserve Bank of India (RBI) has cut the repo rate for the third consecutive time in the month of June. With this cut, the repo rate has come down by a huge 1%. After the reduction in the repo rate, banks have reduced the interest on loans and FDs .

On one hand, this has reduced the EMI of the loan, on the other hand, the return on FD has also decreased. Senior citizens have suffered the most due to the reduction in interest on FD. In such a situation, if you are also troubled by the low interest on FD, then there is no need to take tension. We are telling you about a great saving scheme of Post Office. The name of that scheme is Post Office Time Deposit (TD). By investing in this scheme, you can get more interest than bank FD. Let’s know about this special scheme.

What is Post Office Time Deposit (TD) Scheme?

This is a fixed deposit scheme run by the post office. You can invest in it for 1,2,3 and 5 years. This scheme is backed by the government, so it is completely safe and reliable.

Interest Rates on Post Office Time Deposit Scheme

Duration	interest rate
1 year	6.9% per annum
2 years	7.0% per annum
3 years	7.1% per annum
5 year	7.5% p.a. (Tax exemption under 80C)

Who can invest?

Any adult citizen of the country can invest in this scheme. At the same time, 3 adults can invest in it together by opening a joint account. Parents can invest in this investment scheme in the name of their children.

How much can you start investing with?

You can start investing in this saving scheme with ₹1000. You can increase the amount as per your wish in multiples. There is no maximum investment limit. Interest is paid annually. Investing in 5-year TD is eligible for tax exemption under Section 80C of the Income Tax Act.

The account can be extended within the prescribed time from the date of maturity:

1 year TD: in 6 months
2 year TD: in 12 months
TD for 3 and 5 years: in 18 months

Extension can be requested at the time of opening the account itself. The application form and passbook for extension has to be submitted to the concerned post office. The original interest rate which was applicable on the day of maturity will be applicable for the extension period.

Premature withdrawal of money

Withdrawal cannot be made before 6 months from the date of opening the account. If the account is closed between 6 months to 1 year, the Post Office Savings Account interest rate is applicable.

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

Jyoti — Mon, 10 Mar 2025 04:32:53 +0000

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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