Everyone budgets a part of their earnings and wants to invest it in a place where their money is safe and gives them excellent returns. In this regard, many schemes run by the Post Office are becoming very popular. In this you can earn good profit even by investing small amount. One such budget scheme is Post Office Time Deposit Scheme, in which interest is also being given vigorously by the government.
The scheme offers an excellent interest rate of 7.5%
Post Office savings schemes run for all age groups, be it children, senior citizens, youth and women. If we talk about Post Office Time Deposit Scheme, it offers strong returns, safe investment as well as tax exemption, which makes it very popular. In this scheme money is invested for five years. A handsome interest rate of 7.5 percent is being offered by the government for term investment. That means it is also ahead in terms of giving returns.
You can invest this amount of interest over different tenures under the Post Office Time Deposit Scheme for different tenures. In this money can be deposited for 1 year, 2 years, 3 years and 5 years. If you invest for one year, you get 6.9 percent interest, while if you invest for 2 or 3 years, the rate is fixed at 7 percent. If you invest in this post office scheme for 5 years, investors get interest at the rate of 7.5 percent.
How to make millions from interest?
If you calculate the interest income in post office time deposits, if an investor invests Rs 5 lakh in this post office scheme for five years, at the rate of 7.5 per cent, he will get 2% interest on the deposit during this period. You will get interest of Rs 24,974. At the same time, the total amount on maturity increased to Rs. 7,24,974 will be. This means you will earn more than 2 lakh rupees from interest alone.
You also get the benefit of tax exemption
The time deposit scheme also provides the customer with the benefit of tax exemption under Section 80C of the Income Tax Department Act 1961. Single account or joint account can be opened in this savings plan. An account of a child above 10 years of age can be opened by his family member. In this, an account can be opened with a minimum of Rs 1,000. In which interest money is added annually. There is no limit on maximum investment, meaning the more money you invest, your interest income will increase accordingly.