Post Office FD Scheme(Fixed Deposit Scheme) is a safe and reliable option, which provides a great opportunity to grow your savings. This scheme is especially for those investors who want to keep their money safe without any risk. This scheme, which comes with a government guarantee, offers you a fixed interest rate. If you deposit Rs 9 lakh for 5 years, you can get returns up to ₹13,04,953.
What is Post Office FD Scheme?
Post Office FD Scheme is a scheme in which you can deposit amount for a fixed time. The interest on the deposit compounded during this period (quarterly settlement) is given on the basis. On maturity, you receive both your principal amount and the interest earned together.
This scheme is better for those investors who want to avoid market risks and want to keep their money in a safe place. The current interest rates and investment tenure in this scheme make it more attractive.
Interest rate and tenure information
The interest rates in Post Office FD Scheme vary depending on the tenure. Following are the currently applicable interest rates:
- 1 year: 6.9%
- 2 years: 7%
- 3 year: 7.1%
- 5 years: 7.5%
If you invest for 5 years, it can prove to be most beneficial. These rates may be changed from time to time by the government, so it is important to confirm the current rates before investing.
You will get this much return on depositing Rs 9 lakh
If you invest an amount of Rs 9 lakh in this scheme for 5 years and the interest rate applicable is 7.5%, then you will get a total of ₹ 13,04,953 on maturity. This amount is the sum of your principal amount of ₹9,00,000 and interest earned of ₹4,04,953.
In this, you get the benefit of quarterly compounding, due to which your amount grows faster. This scheme also provides the benefit of tax exemption under Section 80C of the Income Tax Act. However, the interest earned will have to be taxed as per the tax slab.
FD account opening process
It is very easy to open an FD account in the post office. For this you have to follow the following procedure:
- Go to your nearest post office.
- Fill the application form and submit the required documents like Aadhar Card, PAN Card, and Address Proof.
- Deposit the investment amount through cheque, cash or digital medium.
To apply online, your post office account should be linked to Internet Banking. This option gives you the facility to open an FD account sitting at home.
Benefits of Post Office FD Scheme
This scheme is completely safe, because it is backed by the government. You know in advance how much amount you will get on maturity. The benefit of tax exemption is available under Section 80C. And opening and managing an FD account is very simple.
questions to ask
1. Is Post Office FD Scheme completely safe?
Yes, this scheme comes with a government guarantee, so that your money remains completely safe.
2. How much tax is levied on the interest earned?
The interest earned is added to your total income and is taxable as per your tax slab.
3. Can FD account be opened online?
Yes, if your post office account is linked to internet banking, you can open FD account online.
4. What is the minimum deposit amount?
The minimum deposit amount in Post Office FD Scheme is ₹1,000.
5. Is there any penalty for breaking FD prematurely?
Yes, if you break your FD prematurely, interest rate may be reduced and penalty may also be imposed.
Post Office FD SchemeAn ideal option to protect your investment and get assured returns. The return of ₹13,04,953 on depositing Rs 9 lakh for a tenure of 5 years makes it more attractive. If you are looking for a simple and reliable investment plan while avoiding risk, then this scheme can be the right option for you.
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