Amidst rising inflation and falling bank interest rates, if any investment option is becoming the first choice of common people, then it is post office savings schemes. Especially when the Reserve Bank of India cut the repo rate and banks reduced their FD interest rates. In such an environment, a scheme of Post Office is no less than a relief for the investors, in which not only are they getting better returns, but the money is also completely safe.
Actually, post office fixed deposit is called Time Deposit (TD). This scheme works like FD of banks, but its biggest feature is the direct guarantee of the central government. TD account can be opened in the post office for a period of 1 year, 2 years, 3 years and 5 years. At present the post office is offering attractive interest rates of 6.9 percent on 1 year TD, 7.0 percent on 2 years, 7.1 percent on 3 years and 7.5 percent on 5 years TD.
Fixed return of ₹44,995
If an investor deposits ₹1,00,000 in a 5-year TD scheme, he gets a total of ₹1,44,995 on maturity. That means straight fixed interest of ₹ 44,995. In the current situation, no big bank in the country is offering such high interest rates on 5 year FD. This is the reason why this scheme of post office is becoming increasingly famous among investors.
Equal interest to all investors
Another important aspect of the Post Office TD Scheme is that it offers the same interest rate to investors of all age groups. However, unlike banks, it does not provide the benefit of extra interest for senior citizens. Despite this, government guarantee and stable returns make it a great option for those looking for a safe investment.
Government control on interest rates
The special thing is that the interest rates available on post office savings schemes are reviewed every three months and are controlled by the Finance Ministry. This gives investors confidence that their money is in safe hands.
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