Post Office Investment: Deposit ₹ 11.5 lakh once, after 5 years you will get benefit of more than ₹ 5 lakh only from interest.

Post Office Investment: If you want an investment option where your money is completely safe and you also get good returns after the stipulated time, then Post Office’s 5-year Time Deposit (TD) scheme can prove to be a great option for you. In this government scheme, investors get the benefit of fixed interest. The special thing is that if the right amount is invested, it can be possible to earn more than Rs 5 lakh at the time of maturity from interest alone.

Investors’ confidence in government guaranteed schemes is increasing

Post Office Time Deposit Scheme is part of the Small Savings Schemes of the Government of India. In this, the security of investment is completely dependent on the government, hence the fluctuations in the market have no effect on your money. This is the reason why people planning for retirement and wanting safe investments are increasingly adopting this scheme.

Highest interest is available on deposit period of 5 years (Post Office Investment)

The longer the period of investment in this scheme, the interest benefit will also be available accordingly. Currently, 7.50 percent annual interest is being given on 5 year time deposit, which is the highest interest rate in this scheme.

• 1 year – 6.90%
• 2 years – 7.00%
• 3 years – 7.10%
• 5 years – 7.50%

You can start saving even with a small amount

Only Rs 1,000 is required to open an account in this scheme. After this, investors can deposit any amount as per their convenience. Facility to open both single and joint accounts is available in the scheme.

By investing this much, you will earn ₹ 5.17 lakh from interest only.

If a person deposits a lump sum amount of Rs 11.50 lakh for 5 years and gets 7.50 per cent interest per annum, the estimated amount on maturity can be around Rs 16.67 lakh.

• Amount deposited: ₹11,50,000
• Estimated Maturity Value: ₹16,67,440
• Profit from interest only: ₹5,17,440

That means, without any market risk, there can be an opportunity to earn more than Rs 5 lakh from interest alone.

Opportunity to save tax on 5 year TD

Eligible investors investing in the Post Office 5 Year Time Deposit Scheme can also get the benefit of tax exemption under Section 80C of the Income Tax Act. This makes tax planning along with investment easier.

For whom is this scheme most beneficial?

If you want fixed returns without risk, are looking for a better alternative to bank FD or want to prepare secure funds for the future, then this scheme can prove useful for you. Especially those people who want to invest lump sum amount for a long time, they should definitely consider this scheme.

Know this before investing

The interest rates of small savings schemes of post office are reviewed from time to time. Therefore, before investing, be sure to get information about the current interest rates and rules from the concerned post office or official website, so that the right plan and right period can be selected.