Post office time deposit schemes: Interest rate and benefits

Post office Time Deposit Scheme: Post office is the best option to keep your money safe. Post Office has many types of small savings schemes and FD schemes.

But today we are going to tell you about Time Deposit Scheme (TD Account) of Post Office. In this you will get more interest than State Bank of India (SBI) for this scheme you can deposit money for 1 year, 2 years, 3 years and 5 years.

At this time SBI is getting 6.50 percent annual interest on 5 years fixed deposit. At the same time, a 5-year deposit is earning 7.5 percent per annum under the Post Office Time Deposit interest rate.

You too can avail this scheme. If you do a time deposit of 1-3 years, you will get interest at the rate of 6.90 percent. Apart from this, deposits up to 5 years will earn interest at the rate of 7.5 percent.

If you invest money in time deposit scheme, you get interest at the rate of 7.5 percent. After this it will take about 9 years, 6 months i.e. 114 months to double your money.

If you invest Rs 5 lakh in this scheme, you will get Rs 7,24,974 on maturity in five years at 7.5 percent. In this you will get a benefit of Rs 2,24,974 as interest.

Any single person can open an account in this scheme. Apart from this, 3 adults can also open a joint account (Time deposit joint account). At the same time, parents can also open accounts in the name of children above 10 years of age.

In Time Deposit Scheme, the benefit of tax relief is available under Section 80C of the Income Tax Act, 1961. Nomination facility is also available while opening the account. However, if the money is withdrawn before the deadline, a penalty is charged.