Post Office Special Scheme: Earn ₹2 Lakh from Interest Alone with 7.5% Return
- bySagar
- 06 Apr, 2025

Looking for a safe investment with assured returns? The Post Office Time Deposit Scheme (POTD) might be just what you need. With an attractive interest rate of 7.5% for a 5-year deposit, this government-backed scheme allows investors to earn over ₹2 lakh from interest alone—without any market risk.
💰 Guaranteed 7.5% Interest for 5 Years
The government has revised the interest rate on 5-year time deposits to a solid 7.5% per annum, making it one of the most attractive fixed-income instruments for conservative investors. The scheme is offered by India Post and is considered safe and stable.
📊 How You Can Earn ₹2 Lakh from Interest
Here’s a simple example to understand the potential return:
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Investment Amount: ₹5,00,000
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Tenure: 5 Years
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Interest Rate: 7.5% per annum
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Total Interest Earned: ₹2,24,974
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Maturity Amount: ₹7,24,974
This means you earn ₹2.25 lakh in interest—all while your principal remains 100% safe.
📆 Interest Rates Based on Tenure
Tenure | Interest Rate (per annum) |
---|---|
1 Year | 6.9% |
2 Years | 7.0% |
3 Years | 7.0% |
5 Years | 7.5% |
Clearly, the 5-year option offers the highest return and is ideal for long-term savings.
✅ Additional Benefits
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Tax Benefits: Investment in the 5-year deposit qualifies for Section 80C deduction under the Income Tax Act, 1961.
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Minimum Investment: ₹1,000 only
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No Maximum Limit: Invest as much as you want for greater interest returns
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Joint Accounts Allowed: Can be opened singly, jointly, or in the name of a minor (above 10 years via a guardian)
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Annual Compounding: Interest is compounded annually and paid on maturity
🔐 Why Choose Post Office Time Deposit Scheme?
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Government-Backed Security
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Fixed Returns – No Market Fluctuation
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Suitable for Senior Citizens, Housewives, Salaried Individuals
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Flexible Tenures
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Easy to Open Across India at Post Offices or Online
📝 How to Open an Account?
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Visit your nearest post office
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Fill out the Account Opening Form
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Submit ID and Address Proof (Aadhaar, PAN, etc.)
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Deposit the minimum amount (₹1,000 or more)
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You can also open an account via India Post’s online banking portal, if registered
📌 Final Word
The Post Office Time Deposit Scheme is a great option for those looking to grow their savings with guaranteed returns and tax benefits. With no market risks, it's a reliable choice for both short-term and long-term financial goals.