Curated By: Business Desk
Last Updated: January 30, 2024, 11:12 IST
Tax exemption is on the market for accounts with 5 12 months tenure.
The investor has the choice to make each quick-time period and lengthy-time period investments utilizing the time deposit plan.
Banks and monetary establishments certainly do present a wide range of funding schemes that attraction to totally different sections of the societal hierarchy. But in case you are in search of finest rates of interest, submit workplace schemes are additionally a very good possibility. Post workplaces additionally will let you make investments your cash of their schemes. If you desire a protected deposit with good returns, the Time Deposit Scheme run by the submit workplace is an effective possibility. In layman’s language, it’s also known as Post Office FD resulting from its similarity with the financial institution’s fastened deposit schemes. There are many intervals for investing cash. Besides, you additionally get curiosity starting from 6.9 p.c to 7.5 p.c.
The investor has the choice to make each quick-time period and lengthy-time period investments utilizing the time deposit plan. You can deposit cash into this scheme for one, two, three, or 5 years. Any citizen of India might register for the Post Office Time Deposit Scheme. In addition, three adults are capable of open a joint account. Parents might register a time deposit account of their kids’s identify who’re older than ten. A minimal of Rs 1,000 could be invested.
If you make investments cash in a submit workplace time deposit for one 12 months, you’ll get 6.9 p.c curiosity. If you make investments for 2 years, you’ll get 7 p.c curiosity. On investing cash for 3 years, 7.1 p.c curiosity is given to the investor and seven.5 p.c curiosity is given on a time deposit of 5 years.
The quantity invested in a time deposit account with a tenure of 5 years within the submit workplace additionally will get the advantage of tax exemption beneath Section 80C of the Income Tax Act, 1961. Tax advantages will not be accessible on deposits with tenure shorter than 5 years. Money could be withdrawn even earlier than the maturity of the time deposit, however there’s a penalty price that shall be charged.
