Looking for safe and sound investment options with good returns? The Post Office Term Deposit (TD) Scheme may just fit the bill. Since the annual interest rate is 6.9%, you can directly earn a profit of ₹708 on an investment of ₹10,000, which, thus, is an opportunity with low risk and high reward for Indian investors.
This government-safe scheme, whether for short-term goals or long-term wealth creation, offers a mix of flexibility, safety, and assured returns. Now, let’s find out how the Post Office TD Scheme works and why you must include it in your investment portfolio.
What is the Post Office Term Deposit (TD) Scheme?
Post Office TD Scheme is a fixed deposit scheme in which you invest a lump sum for a set period: 1 to 5 years and earn guaranteed interest. This scheme suits risk-averse investors desiring to earn stable returns without the fluctuations that accompany equity and other investments.
Since this scheme is backed by the Government of India, it provides 100% safety to your principal amount, one of the safest investment options available today.
Current Post Office TD Interest Rate (6.9% p.a.)
As of now, the Post Office TD interest rate stands at 6.9% per annum, providing a steady income stream for investors.
Here’s how your investment grows:
- Investment: ₹10,000
- Annual Interest (6.9%): ₹690
- Quarterly Compounding Benefit: Additional ₹18
- Total Annual Profit: ₹708
Key Benefits of Post Office Term Deposit
- Government-Backed Security – Your money is 100% safe under the Indian government’s guarantee.
- Flexible Tenure Options – Choose between 1, 2, 3, 4, or 5 years based on your financial goals.
- Regular Interest Payouts – Opt for monthly interest (via Post Office MIS) or annual payouts as per your needs.
- Low Minimum Investment – Start with just ₹1,000, making it accessible for all investors.
- Tax Benefits (Indirectly) – While the interest is taxable, if your total income is below the taxable slab, you may not owe any tax.
How to Invest in Post Office TD? (Step-by-Step Guide)
- Visit Your Nearest Post Office – Approach the counter and ask for a Term Deposit account opening form.
- Fill in the Application – Provide personal details, investment amount, and tenure.
- Choose Account Type – Select between a single or joint account and decide on monthly or annual interest payouts.
- Deposit the Amount – The minimum investment is ₹1,000, with no strict upper limit.
- Collect Your Certificate – Once processed, you’ll receive a TD passbook or certificate as proof of investment.