Post Office Saving Schemes run by the government have become very popular due to their excellent returns. If you want to save some part of your earnings and invest it in a place where your money will be safe and you will get good returns on it, then these government schemes of post office are a great option. Through the Post Office Time Deposit Scheme, one can earn up to ₹5 lakh in interest only.
**Government Guarantee, Zero Risk**
Investment in Post Office Scheme is completely safe; The government itself guarantees the security of every investment. This means there is no risk of losing your money. These zero-risk savings schemes offer attractive interest rates, turning your savings into a big fund. Additionally, these government schemes also ensure consistent and regular income.
**Great interest on time deposits**
Post office small savings schemes are not only loved for their security but are also known for their great returns. Specifically, the Post Office Time Deposit Scheme offers a maximum interest rate of 7.5% per annum. The interest rate is decided depending on the period of investment. This is a ‘one-time investment’ scheme.
**Freedom to choose investment period**
A special feature of Post Office Time Deposit Scheme is that investors can choose the tenure of their choice. The interest rates vary according to the investment period: 6.9% for 1 year deposits, 7% for 2 years, 7.1% for 3 years and 7.5% for 5 years investments. With this, investors can invest at one go for a period of one, two, three or five years as per their convenience.
**Mathematics of earning ₹5 lakh from interest**
Here’s how you can earn more than ₹5 lakh in interest alone by investing in this government scheme. Its calculation is very simple; You have to invest for a maximum of 5 years at a time. Using the Post Office Time Deposit Calculator: If you invest ₹12 lakh in a lump sum in this scheme for 5 years, your total fund at maturity – assuming an interest rate of 7.5% – will grow to ₹17,39,938. Of this total amount, the interest income alone will be ₹5,39,938. If you opt for a lower investment – say, ₹4.5 lakh for five years – then you will get a total of ₹6,52,477 at maturity based on an interest rate of 7.5%. Of this amount, the interest income alone will be ₹2,02,477.
**Benefits based on investment period**
If you want to earn ₹2 lakh as interest in just three years instead of five years, you will have to invest ₹10 lakh for that period. With an interest rate of 7.1% on investment for 3 years, your fund will grow to ₹12,35,075, of which interest earnings will be ₹2,35,075.
**Tax-free benefits**
Apart from attractive interest rates, this government scheme also offers many other benefits, including tax benefits. Investors are eligible for tax benefits under Section 80C of the Income Tax Act. You can start investing in this scheme with as little as ₹1,000, and there is an option to open a single or joint account. There is no upper limit on the investment amount; You can invest as much as you want.
