The Post Office Time Deposit Scheme (FD) is known as a reliable and beneficial option among Indian investors. Under this scheme, you invest your money for a fixed period and get an attractive interest rate in return. Let’s know about this scheme in detail and how it can meet your financial goals.
What is the Post Office Time Deposit Scheme?
The Post Office Time Deposit Scheme is a fixed deposit scheme available for different tenures: 1 year, 2 years, 3 years and 5 years. In this, the investor deposits a lump sum amount and in return receives returns at a fixed interest rate. This scheme is especially useful for those who are looking for safe and fixed returns.
Who can invest in this scheme?
Any Indian citizen can invest in this scheme. You can open an account individually or jointly with a family member. This account can also be opened for a child above 10 years of age, wherein the investment and account management is done by the guardian on behalf of the child.
Investment period and interest rates
Investments can be made in the Post Office Time Deposit Scheme for different periods, and the interest rates vary according to the period:
- 1 year: 6.9% annual interest
- 2 years: 7.0% annual interest
- 3 years: 7.1% annual interest
- 5 years: 7.5% annual interest
The 5-year term offers the highest interest rate, making it an ideal option for individuals looking to invest for the long term.
Estimated return on investment
If you invest ₹10,00,000 in the Post Office Time Deposit Scheme for 5 years, you will get a return of ₹14,49,948 at the end of the 5-year term. This will result in ₹4,49,948 in interest only. It is a profitable and safe investment option that can help you grow your wealth.
Conclusion
The Post Office Time Deposit Scheme is a reliable and profitable investment option that comes with different tenures and interest rates. This scheme is especially suitable for investors who want safe investments and expect assured returns. If you are looking for a stable and assured return, then this scheme can be an ideal option for you.
Disclaimer: This information is provided for informational purposes only. Always seek expert advice before investing. 1tak.com does not advise anyone to invest money because investment in the market is subject to risks.