By investing in the stock market, an investor can get a huge profit. But, the opposite can happen at the same rate also. Because of the instability of the market, there are heavy chances to loose the hard-earned money. If you want a safe an secure option for investment with a good return rate, then Post Office is there to help you.
The Post Office Term Deposit (TD) scheme is designed for investors seeking safe and healthy returns. If you invest ₹100,000 in this scheme for 3 years, you will receive a total return of ₹123,508 upon maturity, meaning ₹23,508 will be added to your account in the form of interest. This scheme is a great option not only for senior investors but also for ordinary small investors, as the minimum investment amount is only ₹1,000 and there is no investment limit. The most important feature of this scheme is that it offers 7.5% annual interest on a 5-year FD, which is significantly higher than a typical bank FD. It’s also worth noting that banks typically offer this interest rate only to senior citizens, while the post office offers this rate to all investors.
How can open an account
You can open a single or joint account under the Post Office Term Deposit Scheme. A maximum of three people can be added to a joint account. This is a great way to build a large family fund. Furthermore, this scheme comes with a guarantee from the Government of India, ensuring your money is completely safe. Investors can deposit their funds in a fixed deposit scheme for any period between 1 and 5 years. Interest is calculated quarterly and paid annually. If investors wish to withdraw their deposits before the maturity period, premature withdrawal is available after six months.
Therefore, the Post Office Term Deposit scheme is not only a safe investment option but also offers investors better returns than bank FDs. This scheme is also ideal for those who want to start with a small investment and gradually increase their investment.
Key Features:
Tenure: You can invest for any tenure like 1 year, 2 years, 3 years or 5 years.
Minimum investment: You can start with as little as ₹1,000.
Maximum Investment: There is no maximum investment limit.
Interest rate: Interest rates depend on the tenure you choose and are determined by the government on a quarterly basis. (Currently, it typically ranges from 6.9% to 7.5% per annum, with the 5-year TD offering the highest interest).