Small saving scheme: Investment horizon available for 1 to 5 years

Who Can Open an Account?

The scheme is accessible to all through post offices:

·         Single Account: Any adult

·         Joint Account: Two or three individuals, such as spouses

·         Minor Account: Children above 10 can operate the account themselves, or parents can open one on their behalf

With competitive interest rates and tax benefits, the Post Office Time Deposit Account continues to be a preferred option for conservative investors seeking safe, fixed returns.

How Long Will It Take to Double Your Money?

With the maximum interest rate of 7.5%, the scheme allows your investment to double in approximately 9 years and 6 months, according to the Rule of 72.

What is the Rule of 72?

The Rule of 72 is a simple financial formula used to estimate how long an investment will take to double at a fixed annual interest rate. For example, at an 8% interest rate, dividing 72 by 8 gives 9 years, meaning the investment doubles in 9 years.

Tax Benefits

Investments in the 5-year term of the Time Deposit Account are eligible for tax exemption under Section 80C of the Income Tax Act, 1961, up to ₹1.5 lakh. This benefit applies only for taxpayers filing under the old income tax regime.

Post Office Time Deposit Account (5-Year FD Offers 7.5% Interest)

Term | Interest Rate

1 Year | 6.90%

2 Years | 7.00%

3 Years | 7.10%

5 Years | 7.50%

Minimum Investment and Tenure

The scheme, a type of fixed deposit, allows investors to earn guaranteed returns over a fixed period. A minimum investment of ₹1,000 is required, with no maximum limit. Tenures range from 1 to 5 years, with interest rates between 6.9% and 7.5%.