If you invest in the time deposit scheme of the post office at the right time and place, you can make your investment double in a few years. There are many schemes available in the post office where you can get good returns on investment. The best thing about the post office schemes is that your investment will get a better return in a completely safe manner.
This time deposit scheme is an excellent option as a depositor can get more interest than State Bank of India (SBI). In this time deposit scheme, one can invest for one year, two years, three years and five years.
The highest interest from SBI is 5.7% per annum, whereas, the post office time deposit gives you a 6.7% interest in a 5-year deposit scheme. In such a situation, investing in the time deposit scheme can prove beneficial for a depositor.
If you invest for one to three years in the post office time deposit, you will get the interest at 5.5%. At the same time, if you invest for five years, then you can get the interest at the rate of 6.7%. If you avail the interest at the rate of 6.7%, your money will double in 10.74 years, i.e. 129 months. Whereas, SBI takes 12.63 years, i.e. about 152 months at an interest of 5.7% per annum.
In this post office scheme, any single person can open their account and also three adult accounts can also open as a joint account. The parents can open an account in the name of children above 10 years of age.
Also, there is a penalty on premature withdrawal under this scheme. There is also the facility of nomination while opening an account. It is important to note that this scheme provides the benefit of tax exemption under section 80C of the Income Tax Act, 1961.