The post office offers many beneficial schemes for people from all walks of life.
One such reliable investment option is the Post Office Time Deposit Scheme, which works similarly to a fixed deposit (FD). This scheme is completely safe and provides guaranteed returns.
You can invest a minimum of ₹1,000 in this scheme, and there is no maximum limit on the amount.
You invest your money for a fixed period and earn interest based on the duration of your deposit.
Interest Rates and Tax Benefits
The interest rates for different time periods under this scheme are as follows:
1 year: 6.90% interest
2 years: 7.00% interest
3 years: 7.10% interest
5 years: 7.50% interest
If you invest for 5 years, you can also get tax exemption under Section 80C of the Income Tax Act. However, this benefit is available only under the old tax regime.
How to Open an Account
To open an account under the Time Deposit Scheme, visit your nearest post office. You can open the account in your name alone or jointly with someone else.
If you’re looking for a safe and secure investment option without any market-related risks, the Post Office Time Deposit Scheme is a great choice.
