Post Office Scheme: This scheme will convert ₹5,00,000 into a guaranteed ₹7,24,974, know about it..

Fixed Deposit is a very popular scheme. Despite investing in many schemes, people definitely include FD in their portfolios. Apart from banks, you also get the option of FD in the Post Office. FDs are of different tenures, accordingly their interest rates are also different. In the post office, you get the options of FDs with tenures of 1, 2, 3, and 5 years.

Currently, the highest interest is being given on 5-year FD in the post office. Along with this, you also get tax benefits in this. But if you break the FD before maturity, then you have to pay a penalty. You can suffer a huge loss in this.

How much interest is being received on FDs of how many tenures?

1 year FD - 6.9%
2 year FD - 7.0%
3 year FD - 7.1%
5 year FD - 7.5%
This FD will turn ₹5,00,000 into ₹7,24,974 in 5 years

Currently, 7.5% interest is being given on post office time deposits. In such a situation, if you invest ₹5,00,000 in it, then at the rate of 7.5%, you will get ₹2,24,974 in 5 years from interest. In such a situation, after 5 years, on maturity, you will get ₹7,24,974. Apart from this, you will also get tax benefits on this FD under section 80C.

If you make this mistake, you will suffer a loss.

If you want to earn good profit from this FD, then do not break it before the completion of the tenure, otherwise, you will suffer a big loss. According to the rule, if you close a 5-year tenure FD account after 6 months but before the completion of 1 year, then you will get a refund on the investment according to the interest rate applicable to the savings account. Currently, 4% interest is being given on the post office savings account.

On the other hand, if you close the FD after one year, then your money will be returned after deducting 2% interest from the current interest rate on the completed years, and for a partial period of less than one year, the post office savings interest rates will be applicable. Meaning, if you break a 5-year FD after completion of 3 years and 6 months, then you will get interest at the rate of 5.5% for 3 full years and 4% for the remaining 6 months.

Special things related to Post Office Time Deposit

You can deposit a minimum of Rs 1000 in Post Office Time Deposit and there is no maximum limit.

You can open as many accounts as you want, there is no restriction on accounts.

Whatever interest rate will be there at the time of opening the account, the same interest rate will remain applicable till the completion of the account period.

The interest on your investment in Post Office Time Deposit is calculated based on quarterly compounding, but this interest is collected and deposited in your account at the end of the year.
The interest will be deposited in your account after completion of exactly one year from the date on which you opened the account.

Any person of 18 years of age can open a TD account. An account can be opened for children by their parents or guardians.

A child who has completed 10 years of age can operate his account with his signature. He can also open this account in his name.

If you open a time deposit account for 5 years, then you can get tax exemption on the money deposited in it under section 80C.

Disclaimer: This content has been sourced and edited from ZEE Business Hindi. 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.