Get up to 7% interest rate in Post Office Time Deposit Scheme.
3 adults can also open joint account under post office savings schemes
Post Office Savings Schemes are becoming very popular in India these days due to attractive interest rates and safe returns. Like a bank, you can also open a Fixed Deposit (FD) account in the post office for various tenures ranging from one year to five years.
Post Office Fixed Deposit, also known as Post Office Time Deposit (POTD), has different interest rates for different tenures.
Recently, the government increased the fixed deposit scheme interest rates by 30 basis points. Now under this scheme, the investor is being given an interest of up to 7 percent annually. The most important thing is that in this scheme, the investor is given both short term and long term investment opportunities.
The option of investing in the scheme from 1 year to 5 years is open. If you deposit Rs 1 lakh in lump sum for 5 years, not only will you get good returns on maturity, but you can also claim tax exemption under Section 80C of the Income Tax Act.
Any Indian citizen can open an account under the post office fixed deposit scheme. Actually, 3 adults together can also open a joint account. Parents can also open a Fixed Deposit account in the name of their children above the age of 10 years. An account can be opened under this scheme by investing only Rs 1,000.
Different interest rates have been fixed for different periods of investment in the Post Office Time Deposit Scheme. If an investor deposits money in this scheme for 5 years, then he will get interest at the rate of 7 percent per annum. On making a fixed deposit of three years, the investor will be given interest at the rate of 6.9 percent. Similarly, 6.8 percent interest is being received on 2-year time deposit. The lowest interest i.e. 6.6 percent interest is available on one year fixed deposit.
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