Most investors want their money to be safe and grow steadily over time. While options like the stock market, mutual funds, and cryptocurrencies may offer higher returns, they also carry significant risk. In such a scenario, schemes that offer guaranteed returns are considered better, especially for the middle class and those planning for retirement. Government schemes and fixed deposits fall into this category.
Fixed Deposits are a Reliable Option
Bank and post office FD schemes assure investors of a fixed interest rate. They are not affected by market fluctuations. This is why FDs are considered one of the safest investment options. Senior citizens receive additional interest in banks, while the interest rate remains the same for all investors in the post office.
Key Features of Post Office Term Deposit Scheme
Post office fixed deposits are called term deposits. Investors can choose a tenure of 1 year, 2 years, 3 years, or 5 years. Currently, the post office is offering an annual interest rate of 6.9 percent on 1-year term deposits, 7.0 percent on 2-year deposits, 7.1 percent on 3-year deposits, and 7.5 percent on 5-year deposits. The minimum investment in this scheme starts from ₹1,000, and there is no upper limit on the maximum investment.
Investing in your wife’s name
Many people prefer to open FDs in their wife’s name for tax planning and family savings. In the post office term deposit scheme, women, men, and senior citizens all receive the same interest rate. This means that investing in your wife’s name does not make any difference in returns, but it can help balance the family’s financial planning.
How much return will you get on investing ₹1 Lakh?
If a person opens a term deposit of ₹1,00,000 in the post office for 24 months (2 years), according to the current interest rate, they will receive a total of ₹1,14,888 at maturity. This will include approximately ₹14,888 in interest alone. This return is completely secure and carries no market risk.
Safe and Reliable Scheme
The Post Office FD scheme is ideal for investors who want to keep their money safe and receive a fixed return at a predetermined time. This scheme is considered particularly suitable for housewives, retired individuals, and those who prefer safe investments.