Big news about the Post Office plan! See the plan details to see how Rs 2.25 lakh in interest is being paid on a 5 lakh investment

 Big news about the Post Office plan! See the plan details to see how Rs 2.25 lakh in interest is being paid on a 5 lakh investment

Post Office Scheme: This is good news if you too wish to get a high rate of return on your investment. In actuality, an interest of Rs 2.25 lakh is obtained by depositing five lakh rupees in this post office plan.

Post Office TD Calculation: Would you want to put money into a five-year program where there is no risk and high returns? The greatest choice for rewards that are guaranteed to be risk-free is the Post Office Small Savings Scheme. The Post Office's Superhit Time Deposit (TD) program is one of them. Lump sum deposits with maturities of 1, 2, 3, and 5 years are available under this plan. Interest rates are paid annually to anyone who put money into this.

Post Office TD: Be familiar with interest rate specifics

The interest rate on a one-year time deposit at the post office is 6.90%, and for two years, it is 7%. In addition, interest rates on 3-year deposits are 7% and on 5-year deposits are 7.5% annually. These interest rates will be in effect from September 1 until December 31, 2023.

Interest of ₹ 2.25 lakh on ₹ 5 lakh over five years

The Post Office TD Calculator states that the maturity amount would be Rs 7,24,974 if you deposit Rs 5 lakh for a period of 5 years. That means, interest would be generated in the amount of Rs 2,24,974. The government examines Post Office Small Savings Scheme deposit rates on a quarterly basis. This implies that quarterly changes in interest rates are possible. On the other hand, term deposits have interest rates that are locked in for the duration of the maturity period.

A five-year tax deduction will be offered.

After five years of TD in the post office, one might get the advantage of tax exemption. Tax deductions up to Rs 1.5 lakh on investments are available under Income Tax Section 80C. Remember that the amount redeemed from TD at maturity is subject to taxes.

Under Post Office TD, single and joint accounts may be created. The joint account may include a maximum of three people. You may start this account with as little as Rs 1000. Following that, you may deposit multiples of Rs. 100 in it. Post Office Time Deposits have no maximum amount that may be invested.