Post Office TD Scheme : This is the fourth time the RBI has cut the repo rate this year, bringing the total reduction to 1.25% so far. Due to the repo rate cut, banks have also reduced their Fixed Deposit (FD) interest rates. However, the Post Office is still offering attractive and unchanged interest rates to its customers. Today, we will tell you about a Post Office scheme in which you can deposit ₹2,00,000 in a joint account with your wife and earn a fixed interest of ₹89,990.
Post Office TD Scheme Offering Up to 7.5% Interest
The Post Office allows customers to open FD accounts for 1 year, 2 years, 3 years, and 5 years. The current interest rates are:
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1-year FD: 6.9%
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2-year FD: 7.0%
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3-year FD: 7.1%
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5-year FD: 7.5%
In the Post Office, FD is known as Time Deposit (TD). You can open both single and joint accounts under this scheme. A joint account can include up to three people.
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Deposit ₹2,00,000 and Receive ₹2,89,990 at Maturity
The highest interest rate—7.5%—is offered on the 5-year Time Deposit scheme. If you deposit ₹2,00,000 in a joint TD account with your wife for 5 years, you will receive ₹2,89,990 at maturity. This includes a fixed interest of ₹89,990.
It is important to note that currently no bank in the country is offering 7.5% interest on a 5-year FD. The Post Office TD scheme provides the same interest rate to all age groups, whereas banks generally offer an additional 0.50% interest only to senior citizens on certain FD tenures.
Benefits of the Post Office Time Deposit (TD) Scheme
1. Higher Interest Rates Compared to Banks
The Post Office TD scheme offers up to 7.5% interest, which is higher than what most banks currently offer, especially after the recent repo rate cuts. This makes it a great option for safe and guaranteed returns.
2. Guaranteed and Risk-Free Returns
Since the scheme is backed by the Government of India, your money is completely safe. The returns are fixed and guaranteed, without any market-related risks.
3. Flexible Tenure Options
You can choose from 1-year, 2-year, 3-year, and 5-year deposit options, depending on your financial needs. The 5-year option provides the highest interest rate.
4. Option to Open a Joint Account
You can open the TD account individually or jointly. In a joint account, you can include up to three people, making it a good option for family savings.
5. Attractive Maturity Amount
For example, depositing ₹2,00,000 for 5 years at 7.5% yields a maturity amount of ₹2,89,990, including ₹89,990 as fixed interest.