In the post office, FD is called Time Deposit (TD). This scheme is similar to the Fixed Deposit (FD) scheme of banks in terms of operation.
Fixed deposits in the post office are called Time Deposits, or TD. This scheme is a reliable option for those who want guaranteed returns with safe investment. It is similar to bank FDs, but it is guaranteed by the government, which strengthens people's trust. In this scheme, everyone, whether male or female, gets the same interest.
Repo rate reduced, but no change in post office interest rates
In the past few months, the Reserve Bank of India has continuously cut the repo rate. From February to June, cuts of up to 1.00 percent have been made. This has clearly affected the fixed deposit rates of banks, where most banks have reduced the interest on FDs. But this has not had any effect on the post office scheme. The interest rates here remain unchanged, and investors get stable returns.
Invest in your wife's name, you will get sure benefits
Suppose a person makes an FD of ₹2 lakh in the post office in his wife's name. If this investment is made for 2 years, then it gets interest at the rate of 7 percent per annum at the present time. The TD scheme of the post office also has a 2-year term option, in which the interest rate remains stable.
How much interest will be received and the total maturity amount
If an FD of ₹2 lakh is made in the wife's name for 2 years, then the complete calculation of interest will be as follows:
- Investment amount: ₹2,00,000
- Time period: 24 months (2 years)
- Interest rate: 7 percent per annum (compounding annually)
The interest earned on investment in this scheme will be up to ₹29,776. That is, after a period of 2 years, your wife will receive a total of ₹2,29,776 at maturity. This includes the principal of ₹2 lakh and the interest of ₹29,776.
How is interest calculated?
The TD scheme of the post office has annual compounding. That is, the interest of each year is added to the principal, and the next year, interest is also earned on it. This is the reason why the return seems a little more. This scheme is especially for those who want to invest long-term and avoid risks.
Who can invest in the TD scheme?
Anyone can invest in the Time Deposit scheme of the post office. It can be started with a minimum of ₹1000. There is no limit to the maximum amount in this. This account can also be opened in the name of a single person, jointly or a minor. A person can also open more than one TD account.
What is special about this scheme?
- Options of 1 year, 2 years, 3 years and 5 years
- Interest rates are fixed and do not change
- Equal interest rates for all age groups
- Tax exemption benefits available on 5-year TD
- This facility is available in every branch of the post office
Which options are available according to interest rate?
Tenure Interest Rate (Current)
1 year 6.9 percent
2 years 7.0 percent
3 years 7.1 percent
5 years 7.5 percent
Investing in the 5-year TD scheme also provides tax exemption benefits under Section 80C of the Income Tax Act, which makes it even more attractive.
Opening an account is easy in the digital age
Opening a TD account in the post office has become much easier than before. Digital systems have been implemented in most post offices. With Aadhaar and PAN card, you can open this account in a few minutes by going to your nearest post office. This service has also started online in some places.
Postal guarantee and the assurance of fixed income
The biggest advantage of investing in the post office scheme is that it comes under the complete government guarantee. Your money is not only safe in this, but you also get assured returns after a certain time. There is no market risk, and the interest rate is pre-determined.
