The Post Office offers various Time Deposit Schemes with different tenures, ranging from one year to five years. For a one-year time deposit, the interest rate offered is 6.9%. In this article, we will provide all the details on how to earn ₹14,49,949 in five years by investing in your wife’s name through the Post Office scheme.
About Time Deposit Scheme
Many types of savings schemes (India Post Savings Schemes) are offered for investment in the post office, similar to the Fixed Deposit (FD) schemes provided by commercial banks. One such scheme is the Time Deposit (TD), which functions like an FD. In this scheme, the investment matures after a fixed period.
Time Deposit (TD) Schemes Offered by the Post Office
The post office offers Time Deposit schemes for various periods ranging from one to five years. The interest rates are as follows:
- 1-year TD: 6.9% interest
- 2-year TD: 7.0% interest
- 3-year TD: 7.1% interest
- 5-year TD: 7.5% interest
Minimum and Maximum Investment
You can start investing in the Post Office TD scheme with as little as ₹1,000. There is no upper limit on the maximum investment amount.
Tax Exemption Benefit
Investors who invest for five years in the Post Office Time Deposit scheme can avail of tax benefits under Section 80C of the Income Tax Act.
How to Get ₹14,49,949 in 5 Years in Your Wife’s Name via Post Office TD Scheme?
If you invest ₹10,00,000 in the 5-year Time Deposit scheme at an interest rate of 7.5%, you will receive a total of ₹14,49,949 on maturity. This means you will earn ₹4,49,949 as interest over five years, which is higher than the interest rates offered by many banks on FDs.
Important Rules to Remember
- You cannot withdraw your investment before six months in the Time Deposit account.
- You can extend the maturity period if you wish to continue investing for an additional year. To do so, you must notify the post office six months before the maturity date.