As of April 1, 2023, the government has changed the interest rates for all modest savings programmes. With the exception of the Public Provident Fund, interest rates on all savings plans have increased by 10-70 basis points (PPF). A 5-year Post Office Time Deposit Account is one of the most prevalent secure, guaranteed, and preferred return schemes among small investors.
Post Office Time Deposit
One of the best options for individuals who want a stable income and have a minimal risk tolerance is the post office time deposit programme. The government risen the interest rate on the Post Office TD loan with a five-year duration from 7% to 7.5% per year beginning April 1, 2023.
Investors can invest in Post Office Time Deposit Accounts for one, two, three, or five years. When it matures, the time deposit can be extended for another year. The time deposit account plan allows for solo and joint accounts with a maximum of three participants. To open an account, a minimum deposit of Rs. 1000 is required, and further deposits can be made in multiples of Rs. 100. The Post Office TD does not have an investment cap.
Eligibility for Post Office Time Deposit:
- Adult single
- A guardian may establish an account for a juvenile or a minor over the age of ten.
- A guardian may create an account on behalf of a mentally ill individual.
- A joint account can be opened by up to three persons.
Time Deposit Calculator at the Post Office:
If someone invests Rs 6 lakh for 5 years at 7.5% interest, they would receive Rs 2,69,969 in interest and Rs 8,69,969 when the investment matures.
