Utility News Desk!! Like banks, many schemes are run in the post office and good interest rates are also available on them. One of those schemes is Post Office Time Deposit Scheme, commonly known as Post Office FD. In the post office you get the options of FD with tenure of 1, 2, 3 and 5 years. The interest rate is different for everyone according to the tenure. But if you want to invest for more profits then invest in FD with a tenure of 5 years. In this you will get the benefit of higher interest rate and will also get tax benefits. But if you are investing in it then do not make the mistake of breaking it before 5 years, otherwise you will have to suffer huge losses.

This FD will make ₹ 5,00,000 to ₹ 7,24,974 in 5 years

First of all, if we talk about profits, at present interest is being given on time deposits at the rate of 7.5 percent. In such a situation, if you invest ₹ 5,00,000 in it, then in 5 years you will get ₹ 2,24,974 interest on it. In this case, you will get ₹ 7,24,974 on maturity after 5 years. Apart from this, you will also get tax benefit under section 80C on this FD.

Premature crushing will cause huge loss

If you want to earn good profits from this FD then do not liquidate it before the maturity period, otherwise you will suffer huge loss. As per the rules, if you close an FD account with a tenure of 5 years after 6 months but before the completion of 1 year, you will get a refund on the investment as per the interest rate applicable on the savings account. At present, interest is being given at the rate of 4 percent on post office saving account. At the same time, if the FD is closed after one year, the money will be returned to you after deducting 2% interest from the current interest rate applicable on time deposit. That is, if you are getting interest at the rate of 7.5 percent, then in case of pre-mature closure the interest will reduce to 5.5 percent.

• What are the post office TD interest rates?
• One year account – 6.9% interest per annum
• 7.0% annual interest on two year account
• Three year account – 7.1% annual interest
• Five year account – 7.5% annual interest

Special things to post office time deposit

• In Post Office Time Deposit you can deposit minimum Rs 1000 and there is no maximum limit.
• You can open as many accounts as you want, there are no account restrictions.
• Whatever interest rate is there at the time of opening the account, the same interest rate will remain applicable till the maturity of the account.
• The interest on your investment in Post Office Time Deposit is calculated on a quarterly compounded basis but this interest is compounded and credited to your account at the end of the year.
• Interest will be credited to your account on completion of exactly one year from the date of account opening.
• Anyone above 18 years of age can open a TD account. Accounts can be opened for children on behalf of their parents or guardians.
• A child who has completed 10 years of age can operate his account with his signature. He can open this account in his own name.
• If you open a time deposit account for 5 years, then you can get tax exemption under section 80C on the money deposited in it.