Post Office FD: The Post Office is offering 7.1% interest on this scheme! Find out the earnings calculation for ₹3 lakh..
Post Office Time Deposit Calculation: The Post Office Time Deposit is a reliable scheme for earning guaranteed returns without market risk. It is essentially a variant of a Fixed Deposit (FD). Currently, the 3-year Post Office Time Deposit offers an annual interest rate of 7.1%. By investing in this scheme for three years, you can earn attractive interest backed by a government guarantee. Let us look at the returns you would get by investing ₹3 lakh in this scheme.
How much interest will you earn on an investment of ₹3 lakh over 3 years?
If you make a lump-sum investment of ₹3,00,000 in a Post Office Time Deposit for a tenure of 3 years:
Total investment amount: ₹3,00,000
Applicable interest rate: 7.1% per annum
Tenure: 3 years
Interest calculation: Quarterly compounding
Total interest earned in 3 years: ₹70,524
Total amount at maturity: ₹3,70,524
Interest payment rule: Interest on Post Office Time Deposits is calculated based on quarterly compounding, but the actual payout is made annually into your Post Office Savings Account.
4 Key Facts About Post Office Time Deposits
Investment limits: You can open an account with a minimum of ₹1,000 and invest further in multiples of ₹100. There is no upper limit on the investment amount.
Tax rules (Section 80C): Investments in the 3-year Time Deposit do not qualify for tax benefits under Section 80C; this benefit is available only if you opt for the 5-year FD.
Premature withdrawal: Funds cannot be withdrawn during the first 6 months after opening the account. If the account is closed between 6 months and 1 year, you earn interest at the rate applicable to a standard savings account. 100% Government Security: Post Office deposit schemes carry a full guarantee from the Government of India, ensuring the safety of your entire capital and interest.
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