Post Office Scheme: The Department of Posts is continuously running attractive savings schemes across the country with the aim of providing people with safe investments and better returns. One of these schemes is the Time Deposit Scheme, which has emerged as a reliable option for those who want to save more in a short period. This scheme has been designed keeping in mind investors in both urban and rural areas.
What is the Time Deposit Scheme?
Under the Time Deposit Scheme, any individual can deposit money for a period of one year, two years, three years, or five years, according to their convenience. Investment in this scheme can be started with just one thousand rupees, allowing even small investors to benefit. This scheme is completely government-backed, therefore, the investment is considered safe.
Attractive interest rates for different tenures
According to Ajay Dubey, Assistant Post Superintendent of Firozabad Post Office, the interest rate in this scheme is determined according to the tenure. If an investor deposits one lakh rupees for one year, they get an interest rate of up to 6.9 percent. For a five-year investment, the interest rate increases to 7.5 percent. The benefit of compound interest over a longer period significantly increases the investment amount
Income tax relief also available
Another major advantage of the Time Deposit Scheme is that deposits made for a five-year period are eligible for tax exemption under the Income Tax Act. This not only increases savings but also helps in tax planning. This scheme is useful for those who want safe investments along with tax savings.
Withdrawal facility also available
This scheme of the Department of Posts also offers flexibility to the investor. The deposited amount can be withdrawn at any time after six months. This facility is especially useful for those who may need money unexpectedly in the future. Additionally, both single and joint account options are available.
An opportunity for big savings with small investments
The Time Deposit Scheme is specifically designed for those who want assured returns with low risk. Salaried employees, farmers, housewives, and retired individuals can secure their hard-earned money through this scheme and earn better returns over time.