If you want a safe investment with guaranteed returns, the Post Office Time Deposit (FD) is a very good choice. In this scheme, your money is safe and you get a fixed interest rate. Let’s understand this scheme in detail.
Key Features of Post Office Time Deposit
The Post Office Time Deposit has simple features that make it easy to understand:
- Guaranteed returns at a fixed interest rate.
- Investment periods of 1, 2, 3, or 5 years.
- Minimum investment starts at ₹1,000.
- No maximum limit, you can invest any amount.
Interest Rates
The scheme gives different interest rates depending on the number of years you invest.
| Tenure | Interest Rate (per annum) |
| 1 Year | 6.9% |
| 2 Years | 7.0% |
| 3 Years | 7.1% |
| 5 Years | 7.5% |
These rates are fixed for the entire investment period.
How Does This Scheme Work?
You deposit a lump sum amount in the post office. After the maturity period, you get back your original deposit plus the earned interest.
Example: If you deposit ₹1,00,000 for 3 years, you will get ₹1,23,508 at maturity. This amount includes ₹23,508 as interest.
How to Open a Post Office Time Deposit Account
Opening an account is very simple.
- Visit your nearest post office.
- Ask to open a time deposit account.
- Deposit at least ₹1,000.
- Submit KYC documents like ID proof and address proof.
Important Points to Remember
- Interest is compounded every three months but paid once a year.
- If you do not withdraw the interest, it will not earn extra interest.
- KYC documents are necessary for opening an account.
FAQs
What is the minimum deposit?
₹1,000.
What is the highest tenure?
5 years.
Is there a maximum limit?
No.
When is interest paid?
Yearly.
Where to open the account?
At any post office.