If you want good returns with safe investment, then post office saving schemes can be a good option for you. The post office is offering attractive interest rates on savings schemes to its customers. The special thing is that the interest received in some schemes is more than the FD of many big banks of the country.
One of these schemes is the Time Deposit (TD) scheme of the Post Office, which works like the Fixed Deposit (FD) of the bank. In this, after a fixed period of time, you get fixed interest along with the principal amount. If you choose the right tenure, good returns can be earned in this scheme.
Post office TD is getting interest up to 7.5%
Time deposit account in post office can be opened for a period of 1 year, 2 years, 3 years and 5 years. This scheme is exactly like a bank FD, in which on maturity you get the entire amount back with fixed interest. The biggest feature of post office schemes is that they are directly controlled by the central government. That means investors get assurance of safe investment with government guarantee.
At present these interest rates are available on Post Office TD
- 1 year TD: 6.9% interest
- 2 year TD: 7.0% interest
- 3 year TD: 7.1% interest
- 5 year TD: 7.5% interest
You will get interest of Rs 44,995 on Rs 1 lakh
If an investor deposits Rs 1,00,000 in the 5-year TD scheme of the post office, then on maturity he will get a total of Rs 1,44,995. That means you will get fixed interest of around Rs 44,995 on this investment. The interesting thing is that at present many big banks are not giving 7.5 percent interest on 5 year FD, in such a situation this scheme of Post Office can become an attractive option for investors.
However, one thing to keep in mind is that all investors in Post Office TD get equal interest. In banks, senior citizens are usually given about 0.50 percent more interest than normal customers, and some banks offer even higher interest to customers above 80 years of age.