Post Office Term Deposit Plan: If you need ensured pay without taking business sector hazard, then, the term deposit plan of the post office is a superior choice. There is no gamble engaged with putting resources into the post office plan.
In the post office, you can set aside a decent installment for 1, 2, 3 and 5 years. Like banks, on FD of 5 years, the post office additionally gets the advantage of assessment derivation under segment 80C.
6.97 lakh will be accessible on 5 lakh deposit
The five-year term deposit in the post office is getting 6.7% interest yearly. The estimation of interest in this plan is done on quarterly premise. In the event that you put Rs 5 lakh in lumpsum, in 5 years you will have a dependable pay of Rs 6.97 lakh. In this you will get 1.97 lakh rupees from interest. That is, your all out interest in 5 years will be Rs 5 lakh.
You can get FD for 1, 2, 3 and 5 years in the post office. Premium is being paid yearly on one-year term deposits of 5.5 percent, on 2-year deposits of 5.5 percent, on 3-year depsoits, 5.5 percent and on 5-year deposits, 6.7 percent.
Tax deduction in Section 80C
Tax deduction is accessible under section 80C of the Income Tax Act on FD of 5 years in the post office. In this your cash is totally protected. You can make more than 1 FD in the post office. FD account can likewise be consolidated. Aside from this, you can without much of a stretch exchange one of your plans to another plan.
Withdrawals can’t be made before a half year from the date of deposit in the post office deposit. Assuming that you close the TD account following a half year and before 1 year, then, at that point, you will get the pertinent premium on the investment account of the post office. Aside from this, if the TD of 2/3/5 years is shut following 1 year, then, at that point, you will get 2% less interest than the application interest.
Instructions to open account
Getting a FD in the Post Office is extremely simple. For this, you can open an account by giving check or money. You can open an account by putting no less than 1000 rupees in it and there is no restriction on the most extreme sum. Account can be opened by giving KYC subtleties along the application form.
