If you are also looking for a reliable and government guaranteed investment while staying away from risk, then the Post Office Fixed Deposit Scheme can be a great option for you. The Post Office Time Deposit Scheme is also known as FD, which gives you a fixed return at a fixed interest rate. The special thing is that this investment is considered completely safe by the Central Government.
Minimum investment starts from Rs 1000, no maximum limit
The biggest feature of Post Office FD is that you can start investing in it with just Rs 1000. There is no maximum investment limit, which makes this scheme accessible to investors of every category. Whether you are a small investor or a big one, you can invest in this scheme.
Four different tenure options
The post office offers four types of FD schemes:
- 1 year
- 2 years
- 3 year
- 5 years
The interest rate varies for each period and these rates are revised every quarter by the Government of India. Currently, the interest rates for the quarter April to June 2025 are as follows:
- On 1 year FD: 6.9%
- On 2 year FD: 7%
- On 3-year FD: 7.1%
- On 5 year FD: 7.5%
If I deposit Rs. 60,000, how much will I get?
Now let us understand that if you deposit ₹ 60,000 in a 5-year FD of the post office , then how much return will you get after five years i.e. after 60 months.
Answer: ₹86,997
This means that you will get a direct benefit of ₹ 26,997 on your principal amount . You get this amount back in lump sum at the time of maturity.
Payment of interest and tax exemption
- In this FD scheme, the interest is compounded annually but it is paid lump sum at the time of maturity.
- The special thing is that by investing in 5-year FD, you also get tax exemption under section 80C of Income Tax , which makes this scheme even more beneficial for taxpayers.
Why choose Post Office FD?
- Government Guarantee: Backed by the Central Government, your capital is completely safe.
- Fixed interest rate: An interest rate that is protected from market fluctuations.
- Tax benefits: Tax benefits under section 80C on 5-year FD.
- Simple Process: Account can be opened by visiting any nearest post office.
Keep important things in mind
- FD account can be opened in single or joint name.
- If desired, it can also be opened in the name of a minor.
- The account can be transferred from one post office to another.
- If desired, FD can be closed prematurely but there are some conditions for this.
PC:Punjab Kesari
