The Post Office Time Deposit (TD) scheme is a safe and risk-free investment option. Investments can be started with just ₹1000. Depositing ₹1 lakh for 3 years can result in a total fund of ₹1,23,508. This scheme offers the same interest rate to all customers and provides guaranteed returns.
Post Office FD Scheme: The Post Office has introduced an excellent option for investors, where investment can be started with just ₹1000. In this TD scheme, you can get a guaranteed return of up to ₹1,23,508 by depositing ₹1 lakh for 3 years. This scheme is safe, offers better returns than bank FDs, and every investor gets the benefit of the same interest rate.
What is the Post Office Time Deposit Scheme?
The Post Office Time Deposit Scheme, or FD scheme, is similar to a bank's fixed deposit. In this, you deposit an amount for a fixed period and receive the entire amount back with interest upon maturity. Investors get a slightly better interest rate compared to banks. Moreover, this scheme is considered completely safe because the Post Office comes under the Government of India.
Interest Rates and Investment Period
The Post Office FD scheme offers different interest rates for different time periods. The interest rate for one year is 6.9%, for two years it is 7%, for three years it is 7.1%, and for five years it is 7.5%. This means that the longer you deposit the money, the more interest you will earn.
Benefits of Investing in a 3-Year FD
Suppose you deposit ₹1 lakh in a Post Office FD for 3 years. On this investment, you will receive a total of ₹1,23,508 after 3 years. This means you will receive a fixed and guaranteed interest of ₹23,508 in just 3 years. This investment is completely safe, and you will have the same confidence as with a bank FD.
Minimum and Maximum Investment
A special feature of the Post Office TD scheme is that investment can be started with ₹1000. There is no maximum limit for investors. You can deposit less or more amount according to your convenience. Along with a single account, a joint account can also be opened in this scheme. This allows all family members to invest together and benefit.
Same Interest Rate for Senior Citizens
In many banks, senior citizens are given higher interest on FDs. However, in the Post Office, all customers get the same interest rate. This means that regardless of your age, you will always get the fixed interest rate. This is especially beneficial for investors who want to make a safe investment for the long term.
Opening an FD in the Post Office is quite easy. For this, you have to go to the nearest Post Office. There you can deposit the amount in your account and choose the investment period. The calculation of interest is automatic based on the deposited amount. Upon maturity, you also get the interest along with the principal amount.
Why is this scheme special?
This bumper scheme of the Post Office is attractive to investors in many ways. First, it is completely safe because the Post Office is supported by the government. Second, it offers guaranteed returns, meaning there is a definite benefit on your investment. Third, the minimum amount is only ₹1000, which allows even small investors to participate. And finally, it has the facility of both single and joint accounts.
