Post Office Tax Saving FD: Rs 3 lakh, Rs 5 lakh and Rs 10 lakh investments will become approx Rs 4.35 lakh, Rs 7.25 lakh, and Rs 14.50 lakh in 5 years; get calculations
Post office runs FDs of various durations- one-year, two-year, three-year and five-year. Though all of them provide guaranteed return not all of them provide income tax relaxation on deposits up to Rs 1.50 lakh under Section 80C of the Income Tax Act, 1961. Five-year FD (Post Office FD) is the only FD that provides tax relaxation up to Rs 1.50 lakh on deposits.
The five-year FD provides interest rate of 7.5 per cent, which is payable annually but calculated quarterly. Photo: Pixabay/Representational