Post Office Schemes: If you are thinking about investing, you are probably looking for a specific savings scheme. Post office savings schemes can be a great option for you. Investing in post office savings schemes is considered very safe. The Post Office Time Deposit (TD) scheme is one such option. Because it is government-guaranteed, investors’ money is completely safe. This scheme is not affected by market fluctuations. Therefore, risk-averse investors prioritize it.

Facilities Offered by the Post Office

The biggest advantage of the Post Office Time Deposit scheme is that investors can choose the tenure according to their needs. Accounts can be opened for 1 year, 2 years, 3 years, and 5 years. Different interest rates are set for different tenures, allowing investors to choose the best option according to their goals.

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What are the Interest Rates?

The Post Office scheme offers approximately 6.9 percent annual interest for a 1-year tenure, 7 percent for 2 years, 7.1 percent for 3 years, and about 7.5 percent for 5 years. For these reasons, the 5-year Time Deposit scheme is the most popular because it offers better returns and also provides tax benefits.

How Much Investment is Needed to Get ₹4.5 Lakh?

If an investor deposits ₹4.5 lakh for 5 years, according to the current interest rate, they can receive approximately ₹6.5 lakh at maturity. Around ₹2 lakh of this amount is earned as interest, making it an attractive and safe investment.

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Opportunity for Tax Savings

Investing in the Post Office’s 5-year Time Deposit scheme provides tax benefits under Section 80C of the Income Tax Act. This means that, along with safe returns, investors can also save on taxes.

How to Open an Account

An account can be opened in this scheme both individually and jointly. Investments can be started with as little as ₹1000, and there is no upper limit on the maximum investment amount. You can easily open an account by visiting your nearest post office.