Regular investments can easily yield good returns over the long term. While there are many investment options available in the market today, they also come with risks. However, some investments, such as government schemes, bonds, and bank deposit schemes, offer guaranteed returns and are considered lower risk. Typically, when we think of bank deposit schemes, fixed deposits (FDs) are the first to come to mind.
These days, banks are offering very good interest rates on FDs. Similarly, interest rates on fixed deposit schemes for senior citizens are higher than those for the general public. You can also make a fixed deposit in the name of an elderly member of your family. FDs are currently considered a very popular investment option.
Why is a Post Office TD better than a bank FD
Interest rates on fixed deposits vary from bank to bank. You can also invest in these deposits at post offices as time deposits (TDs). Following the Reserve Bank of India’s repo rate cut, banks across the country have reduced their fixed deposit interest rates. Meanwhile, the post office continues to offer customers higher interest rates on time deposit (TD) schemes. The repo rate cut has not yet impacted the interest rates of post office FD schemes. Therefore, this is an excellent option for better returns with lower risk.
Post Office Time Deposit (TD) Interest Rates
You can open a time deposit account at the post office for a period of 1 year to 5 years. These offer guaranteed fixed income for a fixed period, similar to bank FDs. Post offices offer customers the option to open TD accounts for 1 year, 2 years, 3 years, and 5 years.
Current interest rates offered by the Post Office:
- 1-year TD: 6.9% interest rate.
- 2-year TD: 7.0% interest rate.
- 3-year TD: 7.1% interest rate.
- 5-year TD: 7.5% interest rate.
The minimum deposit amount in a Post Office TD account is ₹1,000, and there is no maximum limit.
How much will you earn in 2 years on an investment of ₹1 lakh
Post Office schemes offer the same returns for all customers, whether male, female, or senior citizen. All customers receive the same interest rate under the Post Office TD scheme. If a person invests ₹1,00,000 in a TD in the name of his wife at the post office for 24 months (2 years), he will receive a total of ₹1,14,888 at maturity. You will earn ₹14,888 in interest. This plan offers a guaranteed fixed interest rate without any risk, ensuring your investment is completely safe.
