The government has altered the interest rates for all small savings plans as of April 1, 2023. All savings plans' interest rates have increased by 10-70 basis points, with the exception of the Public Provident Fund (PPF). A 5-year Post Office Time Deposit Account is one of the common return strategies that are safe, guaranteed, and favoured by small investors.
Post Office Time Deposit:
For people who want a guaranteed income and have a low tolerance for risk, the post office time deposit programme is one of the finest choices. From April 1, 2023, the interest rate on the Post Office TD loan with a five-year term has been raised by the government from 7 to 7.5 per cent yearly.
Investors can choose to invest in Post Office Time Deposit Accounts for 1, 2, 3, or 5 years. The time deposit may be continued for an additional year after it matures. Under the time deposit account scheme, both single and joint accounts with a maximum of three individuals can be included.
A minimum deposit of Rs. 1000 is required to start an account, and additional deposits can be made in multiples of Rs. 100. The Post Office TD has no investment cap.
Post Office Time Deposit Eligibility:
- Single adult
- A guardian may open an account on behalf of a minor or a minor above the age of 10
- A guardian may open an account on behalf of a person of unsound mind
- Up to three adults may open a joint account
Post Office Time Deposit Calculator:
If someone invests Rs 6 lakh for 5 years at an interest rate of 7.5%, they will earn Rs 2,69,969 in interest and Rs 8,69,969 overall when the investment matures.
