Interest Rates And Other Information About The Post Office Time Deposit Scheme
Due to their appealing interest rates and secure returns, Post Office Savings Plans are now becoming extremely popular in India. You may create a fixed deposit (FD) account at a post office for any duration between one year and five years, just as you can at a bank.
Post Office Time Deposits (POTD), sometimes known as Post Office Fixed Deposits, offer various interest rates for various terms.
The interest rates for the time deposit program were been raised by 30 basis points by the government. An investor will now get interest under this program of up to 7% annually. The fact that this strategy gives the investor the option to make both short-term and long-term investments is crucial.
The program offers the choice of investing for one year to five years. You may claim a tax exemption under section 80C of the Income Tax Act if you just deposit Rs 1 lakh in one single payment for five years. In addition, you'll get substantial returns when the money matures.
A post office time deposit account may be opened by any Indian citizen. In actuality, three persons working together may create a joint account. Moreover, parents may create a time deposit account in the name of their over-10-year-old children. Under this program, an account may also be started with only a Rs. 1,000 investment.
Under the post office time deposit plan, different interest rates have been set for various investment durations. Investors who deposit money into this plan for a period of five years will get interest at a rate of seven percent annually. The investor will get interest at a rate of 6.9 percent for establishing a three-year time deposit. Similar to that, a 2-year time deposit is earning 6.8% interest. For a one-year time deposit, the lowest interest rate, or 6.6%, is offered.