Regular investment can give big returns in the long run. This is what experts say. Right now, there are many investment options in the market, but all have some risk. However, investments like government schemes, bonds, and bank deposit schemes give guaranteed returns. In these cases, there is no risk.
When we talk about bank deposit schemes, the first thing most people think of is fixed deposits. There is nothing wrong with this. Currently, banks are giving good interest rates on fixed deposits. For senior citizens, the interest rates are higher than for ordinary citizens. If someone wants, they can also make a fixed deposit in the name of an elderly family member.
Post Office Fixed Deposits Give Safe Returns
Fixed deposits (FDs) are a popular way to save money. Bank FD rates are different in each bank. You can also open an FD at the Post Office. This year, the Reserve Bank of India cut the repo rate by 1%. Because of this, banks lowered FD rates. The Post Office still gives the same high rates. The repo rate cut did not change Post Office FD rates.
How Much Will Rs. 1 Lakh Give?
Post Office FDs, also called Time Deposits (TDs), can be opened for 1, 2, 3, or 5 years. They are like bank FDs and give fixed returns. The Post Office gives 6.9% interest on 1-year TD, 7% on 2-year TD, 7.1% on 3-year TD, and 7.5% on 5-year TD. The minimum deposit is Rs. 1,000. There is no maximum.
If someone puts Rs. 1,00,000 in a 24-month TD in their wife’s name, they will get Rs. 1,14,888 after 2 years. This includes the Rs. 1,00,000 investment and Rs. 14,888 interest. The Post Office TD gives fixed returns without any risk.