Those who want to invest in such a scheme, which gives good returns within one to five years and the money is safe, then the time deposit scheme of the post office can prove beneficial for you. It gives more interest than FD. You can start investing with just Rs 1000. While there is no limit on the maximum amount.
If you invest Rs 5 lakh in a time deposit for a period of 5 years, then you will get a profit of about Rs 2.25 lakh on it. At present, compounding interest is added at the rate of 6.7 per cent per annum. In this you will get higher returns than FD. In this you can invest for 1 year, 2 years, 3 years and 5 years.
Benefits of the scheme
1. Time Deposit Scheme guarantees 100% safety on investment.
2. These accounts can be opened both singly and jointly. To open an account in the name of the child, the guardian will supervise it as a guardian.
3. In emergency, you can break this scheme even earlier. So you can withdraw money from maturity. However, 6 months should be completed to open the account for this.
4. Investment made in the scheme for 5 years is also exempted under section 80C of the Income Tax Act 1961.
How to get 7 lakh
If the investor invests Rs 5 lakh in this scheme for 5 years and compound interest of 6.7 per cent is added to it, then on maturity you will get a total of Rs 7,24,517. On the other hand, if you take this plan for 3 years, then you will get maturity amount at the rate of 5.5%. The same interest will be available on deposits of 2 years and one year. If you invest more amount, your amount can also double.