Post Office Time Deposit

Post office time deposit scheme is one of best saving schemes run by the Indian post office. This scheme is popular mostly among the rural population of India where better known investment products haven’t reached yet. As the name suggests the time deposit scheme can be of 1 , 2, ,3 or 5 years in tenure. The scheme is suited for investors seeking assured returns with minimal risk. . It is also transferable from one post office to another. The interest rates are revised periodically, periodically and for FY 2019-20 it stands at 7% for the first three years and 7.8% thereafter. A depositor can open multiple time deposits, there is no cap. As soon as the tenure of a time deposit ends, if the money is not withdrawn it gets renewed for the original amount at whatever interest rate is applicable on maturity date. Please note that an investor can claim tax benefit under Section 80 C for investment in 5 year post office time deposit.