The Post Office Time Deposit Scheme is an excellent option for investors who are risk-averse but still want a good interest rate. Guaranteed by the Government of India, this scheme is 100% risk-free, and by investing in it, you can earn lakhs of rupees in interest, along with significant tax benefits.
Interest Rates and Returns by Tenure
Investors in the Post Office Time Deposit Scheme receive varying interest rates for different tenures. This feature gives you complete freedom to invest according to your financial needs and time horizon, allowing you to maximize your returns.
- A one-year investment earns an interest rate of 6.9%.
- A two-year investment earns this rate, increasing to 7%.
- A three-year investment earns an attractive 7.1%.
- A five-year investment earns the highest interest rate of 7.5%.
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How to Become a Crorepati
This scheme offers a straightforward and secure way to earn lakhs of rupees. For example, if you invest a lump sum of ₹5 lakh for a period of five years, at an interest rate of 7.5%, you will earn a whopping ₹2,24,974 in interest over five years. Thus, the total amount at maturity will be ₹7,24,974. This means you can earn lakhs of rupees from interest alone, without any risk. This scheme is a boon for those who want to stay out of market fluctuations.
Complete Security and Investment Convenience
The Post Office Time Deposit Scheme is backed by the Government of India, so it is 100% safe and insured. Investors have no fear of losing their money. The minimum investment amount in this scheme is only ₹1,000, making it extremely accessible even to the common man. And the most exciting part is that there is no maximum investment limit, meaning you can deposit any amount of money according to your capacity.
Excellent Tax Savings Benefits
Investing in this scheme for a period of five years also provides you with unprecedented tax savings under Section 80C of the Income Tax Act, 1961. This means you not only earn fixed interest but also benefit from tax savings on your investment, making it a highly attractive option.
Single or joint accounts can be opened under this scheme. Parents can also open accounts for children over the age of 10. Interest is credited annually, and the account can be easily opened at your nearest post office.
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