Post Office Schemes: In today’s era, most people have understood the need for savings. This is the reason why they invest in different places according to their needs. If you want to earn a lot by investing, post office schemes can prove to be better.
There is no risk of any kind here. Returns are guaranteed. In such a situation, it is not wrong to say that post office investment schemes are a better option for those who want to invest without any risk. One of these schemes is Post Office Time Deposit (POTD), which you can create a fund with guaranteed returns for a long time if you want.
Post Office Term Deposit Scheme can prove to be a great option. This scheme works just like FD. In this, you can invest your money for a period of 1 to 5 years. In this scheme, investors get a return of 6.9 percent to 7.5 percent interest rate. On the other hand, the country’s major government private banks like SBI, HDFC, ICICI, Kotak Mahindra are giving a return of 6.6 percent annual interest rate on FD.
So much interest on different tenures
Under the Post Office Time Deposit scheme, investors can invest for different tenures. In this, money can be deposited for 1 year, 2 years, 3 years and 5 years. On investing for one year, one gets an interest of 6.9 percent, while on investing money for 2 or 3 years, the rate has been fixed at 7 percent. On the other hand, if one invests in this scheme of the post office for 5 years, then the investors get an interest at the rate of 7.5 percent.
Get benefit in tax exemption
Post Office 5-year FDs are tax-exempt under Section 80C of the Income Tax Act, just like tax-saving bank FDs. However, interest income is taxable in both cases. Also, the reach of post offices extends to villages and small towns, making it easy and reliable for people in remote areas to invest in them. There is no risk of any kind in this scheme of post office. Returns are guaranteed.
Account holders will get these benefits
1 – In case of death of a single account holder or all the account holders in a joint account die, the deposited amount will be given to the nominee or legal heir after claiming it in the post office by filling the form.
2 – If the number of nominees or heirs is less than three, they can continue the account in their name if they wish and receive the amount along with interest. But for this they should be eligible to open a new account in this scheme.
3 – In a joint account, if one or two holders die, then the remaining account holders will be considered the owners of the account. They can continue the account or close it if they wish.
Disclaimer: The information given here is for general investment awareness only. Interest rates and rules may change from time to time. Before investing, be sure to get the latest information from the nearest post office or official source.
