Investment: Not FD, this scheme of post office is giving bumper interest, people are investing in large numbers..

The Reserve Bank of India has cut the repo rate by 1% for the third consecutive time in June, bringing it to its lowest level. With this move, banks have reduced interest rates on loans and FDs. As a result, the EMI of the loan has come down, but the return on FD has also decreased. This has affected senior citizens the most because a large part of their income depends on FD interest.

In such a situation, if you are also troubled by the low interest on FD, then there is no need to worry. We are telling you about a great saving scheme for the Post Office. The name of that scheme is Post Office Time Deposit (TD). By investing in this scheme, you can get more interest than bank FD. Let's know about this special scheme.

What is the Post Office Time Deposit (TD) Scheme?

This is a fixed deposit scheme run by the post office. In this, you can invest for 1,2,3 and 5 years. This scheme is backed by the government, so it is completely safe and reliable.

Interest rates on Post Office Time Deposit Scheme -

Period Interest Rate

1 year 6.9% per annum

2 years 7.0% per annum

3 years 7.1% per annum

5 years 7.5% per annum (Tax exemption under 80C)

Who can invest?

Any adult citizen of the country can invest in this scheme. At the same time, 3 adults can invest together by opening a joint account. Parents can invest in this investment scheme in the name of their children.

How much can you start investing with?

This is an attractive savings scheme where you can start with just ₹1000 and add unlimited amount in multiples of ₹1000. It earns annual interest. Investing in a 5-year TD (Term Deposit) will also get you the benefit of tax exemption under section 80C.

The account can be extended within the stipulated time from the date of maturity-

1 year TD: 6 months

2 years TD: 12 months

3 and 5 years TD: 18 months

The extension can be requested at the time of opening the account itself. The application form and passbook for an extension has to be submitted to the concerned post office. The original interest rate which was applicable on the day of maturity will be applicable for the extension period.

Premature withdrawal-
Withdrawal cannot be made before 6 months from the date of opening the account. If the account is closed between 6 months to 1 year, post office saving account interest rates are applicable.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.