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|
|Tax Benefits||Deposited amount 1.5 lakh /year
- 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
- 50,000 Benefit for senior citizens under section 80TTB
- 10,000 for individuals below 60 under 80 TTA
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.