post office time deposit / Fixed Deposit (POTD/POFD) |
|
| Eligibility | 18+ years single, joint, minor |
| Interest rate | 7 to 7.8% |
| How to pen | any post office |
| Investment Limit Per Year | 200 to no maximum limit |
| Partial withdrawal | not allowed |
| Premature closing | After 6 months with saving bank interest rate,
after 1 year with 1% penalty on interest |
| Maturity / Lock-in Period | 1-5 years |
| Extension | automatic renewal |
| Tax Benefits | Deposited amount 1.5 lakh /year
|
Main Features:
- Low Lock-in Period 1 /2 /3/4 /5 year. However section 80c Applicable only for 5 years investment.
post office fixed deposit double
It simple to know the appreciation of your money with this single formula.
divide interest rate with 72. you will get
ex: 8% interest rate
72/8=9 years your money will be double with POSt Office FD when compared to regular bank fixed deposits hear you earn better interest.
post office fixed deposit interest rates 2019
Note: Interest rates reviewed every quarter by Ministry of finance
| Fixed Deposit scheme | Interest rate | Year |
| Post Office Time Deposit (1 year) | 7.0 | From 01.01.2019 |
| Post Office Time Deposit (2 years) | 7.0 | |
| Post Office Time Deposit (3 years) | 7.0 | |
| Post Office Time Deposit (5 years) | 7.8 |
Interest calculated quarterly but credits yearly.
If TD account matures it automatically renewals if do not withdraw your money at maturity.
post office time deposit calculation 2019
| Fixed Deposit scheme | Deposit amount | Interest rate | Effective annual rate | Interest earned | Maturity |
| Post Office Time Deposit (1 year) | 2 Lakhs | 7.0 | 7.19% | 14,371.81 | 214,371.81 |
| Post Office Time Deposit (2 years) | 2 Lakhs | 7.0 | 7.19% | 29,776.36 | 2,29,776.36 |
| Post Office Time Deposit (3 years) | 2 Lakhs | 7.0 | 7.19% | 46,287.86 | 246,287.86 |
| Post Office Time Deposit (5 years) | 2 Lakhs | 7.8 | 8.03% | 94,289.39 | 2,94,289.39 |
FDs compounded /calculated quarterly by default.
NOte: Post may Include effective annual Intrest rate as Annual Interest rate.
post office time deposit tax benefit
- Income Tax Act India, 1961, the rule allows 1.5 lakh rebate under Section 80C.
- post office time deposit rules 1981 called as Post Office Time Deposit (Amendment) Rules, 2016.
- NO TDS at source
withdrawal benefits
- 50,000 Benefit for senior citizens under section 80TTB
- 10,000 for individuals below 60 under 80 TTA
also, check the Post office Monthly Income Scheme & Senior Citizen Saving scheme
Bank FD Vs Post OfFice TD
- Post Office Intrest rates are slightly higher than Bank FD.
- NO TDS Deducted by Post office but banks do.