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Investment: Post Office Time Deposit or Monthly Income Scheme earns more interest than FD, tax exemption can also be availed.

Time deposit scheme is getting maximum interest of 6.7%
6.6% interest is paid in monthly income scheme

If you are planning to invest somewhere but you are confused about where to invest, you can invest in Post Office Time Deposit Scheme or Monthly Income Scheme. In both these schemes you get higher interest than fixed deposit. We are telling you about this scheme so that you can invest in it as per your need.
Post Office Time Deposit or Monthly Income Scheme earns more interest than FD, tax exemption can also be availed.


What is Monthly Income Scheme?

This is a kind of pension scheme, in which you can manage monthly income to deposit money together. What is special about it is that after the completion of this scheme, you will also get all your money back.

How much can you invest?

You can open an account under this scheme for a minimum of Rs. Also, if your account is single, you can deposit up to Rs 4.5 lakh. If you have a joint account, a maximum of Rs 9 lakh can be deposited in it. The maturity period is 5 years. After 5 years your capital can be recovered and re-invested in this scheme.

There will be an income of 5 thousand per month:

Under this scheme, 6.6 per cent interest is being paid. If you invest Rs 4.5 lakh under this scheme, you will now get Rs 29,700 per annum at an annual interest rate of 6.6. Also, if you invest Rs 9 lakh in a joint account, you will get a return of Rs 4,950 per month and an annual interest of Rs 59,400. Even if you do not withdraw the return, you continue to get interest on it.

Accounts can also be opened in the name of children:

You can also open an account in your child's name. If the child is under 10 years of age, an account can be opened in his / her name on behalf of his / her parents or legal guardian. When the child reaches the age of 10, he can also get the right to manage the account himself.

How to open an account?

You can contact your nearest post office to open a Post Office Monthly Income Account. Here you will have to fill up a form for Monthly Income Scheme. Your account will then be opened.

Post Office Time Deposit Scheme:



  • This is a type of Fixed Deposit (FD) in which you can take advantage of fixed return and interest payments by investing money for a fixed period of time.
  • The Post Office Time Deposit Account offers interest rates ranging from 5.5 to 6.7 percent for a period of 1 to 5 years.
  • According to the official website of Indian Post, investing in it for 5 years can avail tax exemption under Section 80C of the Income Tax Act, 1961.
  • It requires an investment of at least Rs. As well as no limit to the maximum investment.
  • This account can be opened in the name of a minor and a joint account in the name of two adults.
  • Under this scheme interest is paid on an annual basis, but it is calculated on a quarterly basis.
According to India Post website www.indiapost.gov.in, the interest rate is as follows.

Time

interest rate (%)

1 year5.5
5 year
5.5
3 year5.5
5 year6.7
The benefit of tax exemption is available on investment for 5 years

The interest earned in this scheme is taxable and is added to the annual income of the person who has invested in it. According to India Post website www.indiapost.gov.in, you can avail tax exemption under Section 80C of the Income Tax Act, 1961 on investment for a period of 5 years. Click here for more information.

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