Why take tension to reduce interest on FD? Invest in this scheme of Post Office and get more returns
Reserve Bank of India (RBI) Has cut the repo rate for the third consecutive time in June. There has been a major decrease in the repo rate with this deduction. Banks have reduced interest on loans and FDs since the repo rate decreased. This has reduced the EMI of debt on the one hand, on the other hand the return on FD has also decreased. Senior citizens have suffered the most due to low interest on FD. In such a situation, if you are also troubled by low interest on FD, then there is no need to take tension. We are telling you about a great savings scheme of Post Office. The name of that scheme is Post Office Time Deposit (TD). By investing in this scheme, you can get more interest from bank FD. Let’s know about this special scheme.
What is the Post Office Time Deposit (TD) Scheme?
It is a fixed deposit scheme run by the post office. In this you can invest for 1,2,3 and 5 years. The scheme is supported by the government, so it is completely safe and reliable.
Interest rates on post office time deposit scheme
| Duration | Interest rate |
| 1 year | 6.9% per year |
| 2 years | 7.0% per year |
| 3 years | 7.1% per year |
| 5 year | 7.5% per year (tax exemption under 80C) |
Who can invest?
Any adult citizen of the country can invest in this scheme. At the same time, 3 adults together can open a joint account and invest in it. Parents can invest in this investment plan in the name of their children.
How much can you start investing?
You can start investing with ₹ 1000 in this savings scheme. In its multiplier, you can increase as much amount as you want. There is no maximum investment limit. Interest is paid annually. Investing on 5 -year TD, tax exemption is received under Section 80C of the Income Tax Act.
Accounts can be extended within the stipulated time from the date of maturity:
- 1 year TD: 6 months
- 2 year old TD: 12 months
- 3 and 5 years old TD: 18 months
Extension can be requested only when opening an account. To increase the application form and passbook will have to be given to the concerned post office. The original interest rate that was applicable on the day of maturity will apply to the extension period.
Withdrawal of premature money
Withdrawal cannot be done before 6 months from the date of opening the account. If the account is closed between 6 months to 1 year, then the interest rate of post office savings account applies.
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