If you are looking for the safest way to invest to get guaranteed returns without any risk, then the Post Office Time Deposit (TD) scheme is the best for you. It is considered safer than bank FDs because both your principal amount and interest are fully guaranteed by the government. The post office offers attractive interest rates on its TDs. Let us know how you can earn huge profits by investing ₹ 25 lakh in it.
You will get these great interest rates on the Post Office TD
The Post Office Time Deposit Scheme offers different interest rates for different periods, which gives you the opportunity to invest according to your needs.
1-year TD:- 6.9% annual interest
2-year TD:- 7.0% annual interest
3-year TD:- 7.1% annual interest
5-year TD:- 7.5% annual interest
How much will be the profit on investing ₹ 25 lakh
If you invest ₹ 25 lakh, then your profit in different periods will be something like this.
In 5 years
On an investment of ₹25 lakh at a rate of 7.5%, you will get ₹36,24,870. Your profit in this will be ₹11,24,870.
In 3 years
At a rate of 7.1%, you will get ₹30,87,688. Your profit in this will be ₹5,87,688.
In 2 years
At a rate of 7.0%, you will get ₹28,72,204. Your profit in this will be ₹3,72,204.
In 1 year
At a rate of 6.9%, you will get ₹26,77,015. Your profit in this will be ₹1,77,015.
Benefits of Time Deposit Scheme
This scheme offers many great benefits, which make it a good investment option. It is a government deposit, so there is no risk to your money. Investments up to ₹1.50 lakh in a 5-year TD are tax-exempt under 80C. However, if your interest is more than ₹40,000 (₹50,000 for senior citizens), TDS will be deducted. You can open a single or joint account in it, and you can also open more than one account. You can open an account by depositing a minimum of ₹1000, and there is no maximum limit for deposits. If needed, you can also take a loan by keeping your account as security.
Why is it better than a bank TD
Post office TD is considered safer than bank FD because in this, the government takes full guarantee of both your principal and the interest earned. On the other hand, in bank FD, as per the rules of the Deposit Insurance and Credit Guarantee Corporation (DICGC), security is available only up to ₹5 lakh.