FD Tips: On investing 5 lakh rupees in Post Office FD, you are getting interest of Rs 2,24,974, people are investing a lot..
Post Office Time Deposit: Fixed deposits are a better investment option for investors who are looking for guaranteed returns. Post offices offer investors time deposit schemes, also known as post office FDs.
Here you can invest a lump sum. There are four options for investment in the Post Office Time Deposit Scheme. 1 year, 2 years, 3 years, and 5 years, in which interest rates range from 6.9 percent to 7.5 percent. Under Post Office Time Deposit, opening a joint account with a maximum of three persons is allowed.
If you invest in the Post Office Time Deposit Scheme for five years, you will get a return of 7.5 percent on maturity. You need to invest a minimum of Rs 1,000 in this scheme.
How much interest will you get?
Under the Post Office Time Deposit Scheme, interest is paid annually. If you invest Rs 5 lakh for five years at the current interest rate of 7.5 percent, you will get an interest of Rs 2,24,974. You will get Rs 7,24,974 on maturity.
Tax Benefits-
Those who invest in post office time deposits are eligible for tax benefits. Investments held for a minimum of 5 years are eligible for a deduction of up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act. This reduces the tax liability. Apart from this, there is also an option to carry forward the investment account after maturity.
Premature withdrawal before six months is not allowed in this scheme. If you choose to close the account between 6 months and 1 year after opening the account, the applicable interest rate will be equal to that of a savings account and not equal to an FD scheme.
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