Post Office Scheme- Post Office Time Deposit Scheme: People who think only about today are not able to plan their financial situation in the future. Whereas, those who think about tomorrow along with today do not have to face financial problems in the future. The money invested today can be useful in future to meet the financial needs. If you are an investor who prefers to invest in a safe place, then you can adopt the government’s scheme.
Post Office Time Deposit Scheme (TD) can be a good option, but how good is it for you? Is it right to invest in it or not? What is the interest rate available in the Time Deposit Scheme? For how many years can one invest? Who is eligible to invest in the Time Deposit Scheme? Let us also know about the process of investing in this scheme of the Post Office etc.
What is Post Office Time Deposit Scheme?
Post Office’s Time Deposit Scheme is a type of fixed deposit scheme. Investments can be made in it for different periods. Investments can be made in the Government’s Time Deposit Scheme for a period of 1, 2, 3 and 5 years. Being a government scheme, investing in this scheme is considered safe.
What is the annual interest rate in a time deposit scheme?
Investment for a period of one year yields an interest of 6.9% per annum.
Investments with a tenure of two years fetch an interest rate of 7.0% per annum.
Investment for a period of three years yields an interest of 7.1% per annum.
Investment for a period of five years earns 7.5% interest per annum and tax exemption under 80C.
Who can invest in Time Deposit Scheme?
Any citizen of India can invest in the Post Office Time Deposit Scheme, the age should be 18 years or more. Both single and joint account opening facilities are provided for investment in this scheme. 3 people can join a joint account at a time. Parents investing for children can invest in the Time Deposit Scheme in the name of their child.
How much money can you invest in time deposit?
The minimum investment in the post office time deposit scheme is Rs 1000. There is no time limit for maximum investment. Annual interest is paid in this scheme. If you adopt the scheme for a period of up to 5 years, then you can get tax exemption under Income Tax Act 80C.
How to invest in time deposits?
To invest in time deposit, you will have to go to the post office. Here you will have to open a savings account or an account can be opened for time deposit. For this, a form will have to be filled. Apart from name, address, phone number, the period for which you want to invest must also be written in the form. You can invest at least Rs 1000 per month in this scheme. Facility is given to invest for a period of 1, 2, 3 and 5 years.