Government Schemes As Safe As Gold, Earn ₹45,000 from ₹100,000

Post Office Schemes: Nowadays, people seek various options to grow their savings safely and steadily. If you’re looking for risk-free investments and assured income, Post Office savings schemes are an excellent option. These schemes are completely government-owned, ensuring your money is safe. Therefore, many investors across the country prefer Post Office schemes.

The Post Office offers a time deposit scheme. This scheme is similar to a bank’s fixed deposit scheme, but offers more attractive benefits. You can deposit a lump sum and receive the proceeds with interest after a fixed period. For example, if you deposit ₹100,000 for five years, at a quarterly compounding interest rate of 7.5 percent, you will receive a total of ₹144,995 at maturity, or ₹44,995 net interest.

Investment Period and Minimum Amount

The Post Office Time Deposit Scheme offers various options for investors. You can open an account for one, two, three, or five years. The minimum investment in this scheme is ₹1,000, while there is no maximum limit. Upon completion of the investment period, you receive both principal and interest.

Interest Rate and Compounding Benefits

The interest rates in this Post Office scheme are determined based on the tenure. One-year deposits currently earn 6.9 percent, two-year deposits 7 percent, three-year deposits 7.1 percent, and five-year deposits 7.5 percent. Interest is calculated quarterly, so your interest is added to the principal every three months. If you do not withdraw the interest, it continues to grow through compounding, yielding a higher return upon maturity.

Senior Citizens and Tax Benefits

This Post Office scheme offers the same interest rates for investors of all age groups. There are no additional benefits for senior citizens. Tax benefits are also available under Section 80C of the Income Tax Act on investments made for five years. You can easily open an account at your nearest post office and grow your savings safely.

Timely Maturity and Withdrawal

At maturity, you receive both the invested amount and the interest. If you wish, you can transfer the interest earned each year to your savings account. This way, your investment continues to accrue interest, and you receive the maximum return upon maturity.