Post Office Time Deposit: There is a continuous sell-off in the market. Sometimes there is a decline in the small-cap index,and sometimes there is a huge sell-off in large-cap companies. In such a situation,today we are going to understand that if someone wants high returns without risk in this period of decline,what should he do?
That is,if you want to invest your money with safe and guaranteed returns,then Post Office Time Deposit (TD) can be a great option for you. This scheme works exactly like a Fixed Deposit (FD),in which you get a fixed interest rate on investing for a fixed period. Due to government support,this scheme is considered safe and reliable.
Features of Post Office TD
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The good thing about this scheme is that investment can be started with only Rs 1,000. There is no upper limit. Investors can deposit any amount at their convenience. If an investor invests in a time deposit for 5 years,he gets tax exemption under Section 80C of the Income Tax Act.
In this scheme,investors also get the facility of premature withdrawal after 6 months,but some penalty may be levied on it. The auto-renewal option is available after maturity. The facility of adding nominees is also available while opening the account.
Interest rates: -Attractive returns for different periods
1 year: 6.9%
2 years: 7.0%
3 years: 7.1%
5 years: 7.5% (Tax exemption benefits)
How much return will be received in Post Office Time Deposit at 5-year plan
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If an individual investor invests Rs 10 lakh in a time deposit for 5 years,he will get an interest rate of 7.5%. The total interest received on this will be Rs 4,49,949 and the total amount on maturity will be Rs 14,49,949. This interest is compounded every quarter,giving a higher return on investment. This compounding works just like a mutual fund.
