Post Office Scheme: Amidst the fluctuations and uncertainties of the market, a common investor is always looking for an option where his money is completely safe and the returns are also better than traditional bank FD. If you too are looking for a safe investment scheme for your hard-earned money, then Post Office savings schemes can prove to be a great option for you. The ‘Post Office Time Deposit Scheme’ (POTD) which comes with the Sovereign Guarantee of the Government of India is much discussed among investors these days. By investing just Rs 2 lakh in this scheme, you can earn a handsome income of up to Rs 90 thousand only through interest.
Zero risk, sure return guarantee
The time deposit scheme of the post office works exactly like the fixed deposit (FD) of the bank, but the returns received in it are quite attractive. The biggest thing is that in this your money remains under the direct supervision of the government, hence the scope for risk is negligible. The specialty of this scheme is that you can deposit your money for one, two, three or five years as per your financial need.
If we talk about the current interest rates, the government is giving 6.9 percent interest on one year deposits. Whereas, if you invest for two or three years, this rate increases to 7 percent. But, the real benefit lies in long term investment. By investing money for full five years, you get tremendous interest at a high rate of 7.5 percent.
How will an investment of Rs 2 lakh give a profit of Rs 90 thousand?
There is a simple rule in the world of investment… the longer the investment, the bigger the profit. If you want to get the most out of this scheme, then choosing the five-year option would be the wisest move. Let us understand this with an easy calculation.
Suppose you made a lump sum investment of Rs 2 lakh for five years in this time deposit scheme of the post office. Now at the annual interest rate of 7.5 percent, your total fund after five years will be Rs 2,89,990. In this, your original amount invested is Rs 2 lakh, while Rs 89,990 is purely interest income. This makes it clear that a common investor can make such a good amount of money only on government guarantee, without any stock market risk.
Bumper return on investment of Rs 5 lakh
If your investment capacity is high, then your income also increases manifold in the same proportion. For example, if an investor deposits Rs 5 lakh for five years, he will get Rs 2,24,974 as interest on completion of the tenure. In this way his total maturity fund will become Rs 7,24,974.
Along with secure profits, another biggest feature of this scheme is the income tax relief. Tax exemption of up to Rs 1.5 lakh can be easily claimed under Section 80C of the Income Tax Act on investing in a five-year time deposit. Opening an account in this scheme is also very easy. You can start with a minimum amount of just Rs 1,000 and there is no maximum investment limit. As per your convenience, you can open a single account or a joint account with any family member. Every year interest money keeps getting added to your account.