Post Office FD Scheme : The post office is one of the most trusted places in India for small and middle-class investors to invest their money safely and earn a good return. The Post Office Fixed Deposit (FD) Scheme offers complete security for your money along with attractive interest rates.
If you also want to earn good returns through the post office, here’s the complete information you need to know.
Post Office FD Scheme Overview
The Post Office Fixed Deposit Scheme is a government-backed investment option, ensuring full safety of your money. This scheme offers multiple tenure options ranging from 1 year to 5 years. The longer you invest, the higher the returns you earn.
The most notable benefit is that the 5-year Post Office FD qualifies for a tax deduction under Section 80C of the Income Tax Act, making it a great option for tax-saving investors.
Example : ₹3 Lakh Investment in Post Office FD
Let’s understand how much you can earn by investing ₹3,00,000 in the Post Office FD Scheme.
- Investment Amount: ₹3,00,000
- Tenure: 5 years
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Interest Rate: 7.5% (current rate)
After 5 years, you will receive a total amount of ₹4,14,126, which includes ₹1,14,126 as interest income.
Note: The above calculation is based on compound interest, and the interest rate is subject to change as per government notifications.
Loan Facility Against Post Office FD
The Post Office FD Scheme is not just limited to saving and earning interest. In times of financial need, you can also take a loan against your FD. Typically, you can get a loan of 60% to 90% of your FD amount, depending on the post office’s terms and conditions.
The interest rate on the loan is usually 1% to 2% higher than the FD interest rate, making it a convenient option during emergencies when you don’t want to break your FD prematurely.
Why You Should Invest in Post Office FD Scheme
The Post Office FD Scheme is ideal for individuals looking for safe, guaranteed, and risk-free returns. It carries no market risk, unlike mutual funds or stock market investments.
This makes it a perfect choice for small and middle-class investors who want stability and security for their savings. Additionally, the loan facility adds flexibility, allowing access to funds during urgent situations without losing interest benefits.
