Post Office FD Scheme: India Post is known not only for mail services but also for offering multiple banking and financial facilities. The post office runs several small savings schemes including RD, TD, MIS, SCSS, PPF, SSA, and KVP, through which different types of accounts can be opened. Among these options, the Post Office Time Deposit (TD) Scheme is presently providing better returns compared to bank Fixed Deposits (FDs). At the post office, FD accounts are operated under the Time Deposit scheme. In this article, we will explain a plan where an investment of just ₹1 lakh can generate an attractive interest amount of ₹44,995.
Post Office FD Provides Interest Rates Ranging from 6.9% to 7.5%
India Post allows FD investments for durations of 1 year, 2 years, 3 years, and 5 years. The interest rate is 6.9% for a 1-year FD, 7.0% for 2 years, 7.1% for 3 years, while the maximum rate of 7.5% applies to a 5-year FD. At present, no bank in India is offering interest rates as high as these.
The minimum investment required under the Post Office Time Deposit Scheme is ₹1,000, with no upper investment cap. Both individual and joint accounts can be opened under this scheme, and a joint account can include up to three account holders.
Invest ₹1,00,000 and Get ₹44,995 as Assured Interest
The highest interest rate of 7.5% is available on the 5-year Time Deposit offered by the post office. By investing ₹1 lakh in this 5-year (60-month) FD plan, the total maturity value becomes ₹1,44,995. Out of this amount, ₹44,995 is fixed interest.
As the post office functions under the direct supervision of the Central Government, the investment comes with sovereign backing, ensuring guaranteed returns at maturity. It is also important to note that, unlike banks where senior citizens often receive an extra 0.50% interest on certain FD tenures, the post office provides the same interest rate to all investors.
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