Post Office Savings Schemes: The Post Office is an institution where individuals can join various schemes to earn decent returns without facing any hassles. The Post Office offers attractive interest rates on its savings schemes.
In addition to a standard savings account, you can also choose to invest in a wide range of savings schemes such as TD (Time Deposit), RD (Recurring Deposit), MIS (Monthly Income Scheme), SCSS (Senior Citizen Savings Scheme), and PPF (Public Provident Fund). By opening an account in these schemes and making an investment, you can earn excellent interest returns. Here, we will tell you about the Time Deposit, or TD.
This scheme functions similarly to a Bank Fixed Deposit (FD). It offers a fixed, guaranteed interest rate along with the return of your entire principal amount upon the completion of a specific tenure. If you were to invest ₹2 lakh for a period of 12 months, you can find out exactly how much interest you would earn in the section below.
How Much Return Will You Get from the Post Office in 2 Years?
If you open a Fixed Deposit account at the Post Office for a tenure of 1 year, 2 years, 3 years, or 5 years, you will earn attractive interest. At the Post Office, these accounts are opened under the name “Time Deposit.” Furthermore, these schemes operate directly under the control of the Government of India.
The Post Office currently offers an interest rate of 6.9% on a 1-year TD, 7.0% on a 2-year TD, 7.1% on a 3-year Time Deposit, and 7.5% on a 5-year TD. This ensures a hassle-free experience and guarantees substantial returns upon maturity.
How Much Interest Will You Earn on a Deposit of ₹2,00,000?
If you deposit ₹2,00,000 into a 12-month Time Deposit scheme at the Post Office, you will receive a total return of ₹2,14,161 upon maturity. This total includes an interest component of ₹14,161. Currently, a 5-year TD account at the Post Office offers an interest rate benefit of 7.5%. No other bank in the country is currently offering such a high interest rate.
It is important to note that under the Post Office Term Deposit (TD) scheme, customers across all age groups receive equal interest benefits. In banks, however, senior citizens receive an interest rate that is 0.50 per cent higher than that offered to general citizens. Furthermore, several banks appear to be offering even higher interest rates to customers aged over 80 years.