Post Office Schemes: People in India like the Post Office Scheme very much. The biggest reason for this is security. These schemes are directly controlled by the Central Government, due to which your hard-earned money remains 100% safe. Post Office offers many great schemes, in which you get guaranteed returns at a fixed interest rate.
Popular and safe investment schemes of Post Office
If you want risk-free investment, then these schemes of Post Office are the best option for you:
Post Office PPF Account
You can open a Public Provident Fund (PPF) account in the post office in your name as well as in the name of your spouse. With this, you can earn separate interest on both accounts, which will double your benefit.
Any individual can deposit a maximum of ₹1.5 lakh in his PPF account in a financial year. Along with this, you can also deposit ₹1.5 lakh in your spouse’s account. Both accounts will get separate interest, which will be a big saving for your family. Investment in PPF also gets tax exemption under section 80C, and the amount received on maturity is also tax-free.
Post Office Time Deposit (TD)
You can get attractive returns by investing in Post Office Time Deposit (TD) schemes. This year, the Reserve Bank of India (RBI) has cut the repo rate thrice, bringing it down from 6.50% to 5.50%. Due to the reduction in the repo rate, most major banks have reduced the interest rates on their Fixed Deposits (FDs). However, the post office continues to offer stable and attractive interest rates to its customers.
The central government changes the interest rates of small savings schemes and other schemes offered by banks and post offices every three months. Post Office TD works just like a Fixed Deposit (FD). Here you invest a lump sum amount for a fixed period and get a guaranteed return on maturity.
Current interest rates and examples
Currently, Post Office TD is offering interest between 6.9% to 7.5%. These rates are the same for all customers.
Tenure Current interest rate
1 year 6.9%
2 years 7.0%
3 years 7.1%
5 years 7.5%
Example
If you invest ₹2 lakh in a 2-year TD at 7.0% interest, you will get ₹2,29,776 on maturity. This includes ₹29,776 as guaranteed interest for two years. This assured return gives you a stable income irrespective of market fluctuations.
