Post Office Scheme: Make a safe investment by opening an FD in your wife’s name at the post office. In two years, it will generate attractive returns that even your friends will ask how it happened. This is an easy and risk-free way to ensure your family’s financial security.
Everyone wants their hard-earned money to be safe and generate good returns in the future. Investment becomes an important avenue for this. While the stock market and mutual funds offer the opportunity for high returns, they also carry risks. If you’re investing with family security in mind, a Post Office Fixed Deposit (FD) is a reliable option, especially if you invest in your wife’s name.
Why investing in the wife’s name is beneficial
In Indian families, investment decisions are often made by men, but investing in the wife’s name can prove beneficial in several ways. Doing so increases the wife’s financial independence, and if she is a housewife, the tax burden on interest earned from an FD opened in her name can also be reduced, as she does not have a separate income. Additionally, this type of investment further strengthens the family’s future financial security. In case of an emergency, the wife can directly access the investment, ensuring timely access to the family’s financial needs.
Post Office Time Deposit
Post Office FD (Time Deposit) is a safe investment instrument that offers guaranteed returns. Its tenure and interest rates are as follows.
- 1 year FD – 6.9%
- 2 year FD – 7.0%
- 3-year FD – 7.1%
- 5 year FD – 7.5%
- Minimum investment amount: ₹1,000
- No maximum investment limit
If an investor makes a fixed deposit of ₹100,000 in his wife’s name for two years, it will earn interest at 7.0% per annum. After two years, this amount will grow to ₹114,888, consisting of the principal of ₹100,000 and the interest of ₹14,888. The biggest advantage of this scheme is that the interest rate remains constant for the entire term and is not affected by market fluctuations.
Difference between Bank FD and Post Office FD
| Speciality | Bank FD | Post Office FD |
|---|---|---|
| interest rates | Depends on RBI repo rate, keeps changing | Stable and Guaranteed |
| Senior Citizen Benefits | Earn extra interest | Same rate for all |
| tax benefit | Only on 5 year tax saving FD | Section 80C tax exemption on 5-year FD |
| Minimum Investment | different in different banks | ₹1,000 |
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