Post Office Scheme : Inflation is rising day by day. In such times, everyone plans to invest a portion of their income in bank fixed deposits or other government funds to secure their future. If you too are planning to invest your money, let us inform you that the Post Office has launched an excellent fixed deposit scheme. If you invest your money in this scheme, you will earn higher interest than bank fixed deposits. With this Post Office scheme, you can earn significant returns by investing for a fixed period of time. Let’s understand the full details below.
Recently, the RBI reduced the repo rate for the third consecutive time. This reduction has brought the repo rate down by 1%. The RBI was expected to cut the rate by 0.25%, but the RBI made a larger cut of 0.50%. Following this decision, banks have begun reducing interest rates on loans and fixed deposits.
The reduction in the repo rate has brought relief to borrowers, but has caused significant losses for investors. However, despite this, many schemes are still offering attractive interest rates. If you’re considering investing, this post office scheme is currently offering higher returns than bank fixed deposits. Let’s understand more details below.
Post Office Scheme: Get great benefits from this scheme
Falling interest rates have had the greatest impact on senior citizens. If you too are worried about low interest rates on fixed deposits, you need not worry. Today, we are telling you about an excellent savings scheme offered by the Post Office, known as the Post Office Time Deposit Scheme. By investing in this scheme, you can earn higher interest than bank FDs. Let’s learn the full details below.
Post Office Scheme: What is the Post Office Time Deposit Scheme?
This is a fixed deposit scheme offered by the Post Office. The Post Office Time Deposit Scheme allows you to invest for 1, 2, 3, or 5 years. Because it is a government-backed scheme, it is considered completely safe and reliable. Let’s take a look at the details.
Post Office Time Deposit Scheme Interest Rates
- 1-Year Deposit: 6.9% Interest
- 2-Year Deposit: 7.0% Interest
- 3-Year Deposit: 7.1% Interest
- 5-Year Deposit: 7.5% Interest (Eligible for tax deduction under Section 80C)
Who can invest?
Any adult citizen of India can invest in this scheme. Up to three adults can open a joint account. Parents can also open accounts in the names of their children.
Minimum Investment Amount
You can start investing in this scheme with a minimum of ₹1,000, and you can increase this amount in multiples. There is no maximum investment limit. Interest is paid annually. 5-year TDs also offer tax benefits under Section 80C. After maturity, the account can be extended within a specified period.
Extension Eligibility:
- 1-year TD: Extendable within 6 months
- 2-year TD: Within 12 months
- 3-year and 5-year TD: Within 18 months
Extension requests can be made at the time of account opening or later by submitting the application form and passbook to the post office. The original interest rate applicable on the maturity date will be applicable during the extension period.
Premature Withdrawal Rules
Withdrawals are not permitted within the first 6 months from the date of account opening.
If the account is closed between 6 months and 1 year, the applicable interest rate will be the Post Office Savings Account interest rate.
