The Post Office is one of the most reliable mediums where small investors and middle-class families can invest and earn good returns. The Post Office Fixed Deposit (FD) Scheme is considered completely safe, and it also provides attractive returns.
If you are also looking to earn a stable profit through the Post Office, here is the complete information you need.
Post Office FD Scheme – Key Features
The Post Office FD scheme is fully backed by the Government of India, which makes it a safe and secure investment option. Investors can choose different tenures ranging from 1 year to 5 years.
The longer you invest, the more benefits you receive. The most important feature is that a 5-year Post Office FD qualifies for tax exemption under Section 80C of the Income Tax Act.
Example: ₹3 Lakh Investment in Post Office FD
Suppose an investor deposits ₹3,00,000 in a Post Office FD Scheme for 5 years.
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Current Post Office FD interest rate: 7.5%
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At maturity (after 5 years), the investor will receive: ₹4,14,126
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Total interest earned: ₹1,14,126
This calculation is based on compound interest. However, it is important to note that interest rates may change from time to time, as they are revised by the government.
Loan Facility on Post Office FD
The Post Office FD scheme is not just about savings and investment; it also offers the facility of taking a loan against your FD.
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Loan eligibility: 60% to 90% of the FD amount, depending on Post Office rules.
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Interest on loan: Around 1% to 2% higher than the FD interest rate.
This feature is particularly useful in emergencies when you need funds but don’t want to break your FD.
Why Should You Invest in Post Office FD?
The Post Office FD scheme is ideal for people who:
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Want guaranteed returns with zero market risk.
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Prefer a safe investment option backed by the government.
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Need access to a loan facility in emergencies.
This is why it is considered a great option for small investors and middle-class families looking for security along with stable returns.