Post Office : The Post Office’s Time Deposit (TD) scheme is becoming increasingly popular with investors, especially those seeking better returns than bank fixed deposits (FDs). If you invest Rs 100,000 in this Post Office scheme for three years, you will receive Rs 123,508 after the specified period, of which Rs 23,508 will be your interest.
This scheme is a great option not only for investors but also for ordinary small investors, as the minimum investment amount is only Rs 1,000 and there is no investment limit. The most significant feature of this scheme is that it offers 7.5% annual interest on a 5-year FD, which is significantly higher than a typical bank FD. It’s also notable that banks typically offer this interest rate only to senior citizens, while the post office offers this rate to all investors.
You can open a single or joint account under the Post Office Time Deposit Scheme. A maximum of three people can be added to a joint account. This is a good way to build a substantial family fund. Furthermore, this scheme comes with a guarantee from the Government of India, ensuring your money is completely safe.
Investors can deposit their funds in a time deposit scheme for any period between 1 and 5 years. Interest is calculated quarterly and paid annually. Premature withdrawal is also available after six months if investors wish to withdraw their deposits before the maturity period.
Therefore, the Post Office Time Deposit scheme is not only a safe investment option, but it also offers investors better returns than bank FDs. This scheme is also ideal for those who want to start with a small investment and gradually increase their investment.
By opting for this plan, you can protect your assets and get assured returns, especially at a time when the stock market and other investment options are not stable.