As of April 1, 2023, the interest rates for all small savings plans have been changed by the government. With the exception of the Public Provident Fund (PPF), the interest rates on all savings plans have increased by 10-70 basis points.
One of the most common safe, guaranteed return strategies that small investors favor is a 5-year Post Office Time Deposit Account.
Time Deposit at the Post Office:
The post office time deposit program is one of the best options for people who want a guaranteed income but are afraid of risk. The government will increase the annual interest rate on the Post Office TD loan with a five-year term starting on April 1, 2023, from 7% to 7.5%.
Investors can decide to put resources into Post Office Time Deposit Accounts for 1, 2, 3, or 5 years. The time deposit might be gone on for an extra year after it develops. The time deposit account plan allows for joint and single accounts with a maximum of three occupants.
A down payment of Rs. 1000 is expected to begin an account, and extra deposits can be made in products of Rs. 100. There is no investment cap on the Post Office TD.
Eligibility for Post Office Time Deposits:
A guardian can open an account on behalf of a minor or a minor over the age of 10; a guardian can open an account on behalf of a person who is mentally unsound; up to three adults can open a joint account.
At the end of the five-year investment period, a person who invested Rs 6 lakh will have received Rs 2,69,969 in interest and Rs 8,69,969 in total.
