In today’s era, every investor wants their money to be safe and also get good returns on it. If you are also looking for such a safe investment, then the Post Office Time Deposit scheme is a great option for you. Know how you can earn a profit of more than ₹ 2 lakh from the interest on this FD and also avail a tax exemption.
What is the Post Office Time Deposit Scheme
Post Office Time Deposit (POTD) is a type of government FD (Fixed Deposit). This scheme is beneficial for people of all ages, whether a child or an elderly person. In this, you can start investing with a minimum of ₹ 1,000 and can deposit money for 1 year, 2 years, 3 years, or 5 years as per your convenience. The biggest feature of this scheme is that your money is completely safe and you get guaranteed returns.
Profit of more than ₹ 2 lakh on investment of ₹ 5 lakh
The biggest benefit of this scheme is available after an investment of 5 years. If you invest ₹ 5 lakh for 5 years, then at an interest rate of 7.5%, you will get a profit of ₹ 2,24,974 from interest alone. This means that your earnings from interest alone will be more than ₹ 2 lakh. When your scheme is completed, you will get this interest along with the principal amount of ₹ 5 lakh, that is, your total amount will be ₹ 7,24,974.
Interest rates vary according to the tenure
In this post office scheme, the interest rates vary according to the tenure of investment. The longer the period for which you invest, the more interest you will get. For example, for 1 year you get 6.9% interest, while for 2 and 3 years it is 7%. But if you invest for 5 years, you will get the maximum benefit of 7.5% interest. This post office savings scheme is a great option for all those investors who want guaranteed profits at low risk.
You will also get a big tax exemption
Another big feature of this scheme is that you also get the benefit of tax exemption under the Income Tax 80C. That is, you can save tax on investments up to ₹ 1.5 lakh. In this way, you can grow your money safely and worry-free, and also save tax. This post office savings scheme is a great option for all those investors who want guaranteed profits at low risk.