Rs 10 lakh investment in this guaranteed return scheme provides Rs 4.50 lakh interest and tax benefits

Post Office FD: Goal-based financial planning is the best for any investor. It instills the discipline of saving every month from your income and investing it. You can invest for short-term goals, mid-term goals, or long-term goals. The second factor when you pick an investment scheme is your risk appetite. You can invest in guaranteed return schemes or market-linked programmes. While the first option ensures your money grows, the second option may grow your money faster or deplete it sooner.

For those investing for their medium-term goals in guaranteed return schemes, National Savings Time Deposit Account (TD) is one of the options. In the scheme, also known as post office FD, one can park their money for five years.

The scheme offers an annual interest rate of 7.5 per cent.

This FD with a five-year lock-in period also provides tax benefits on deposits up to Rs 1.50 lakh in a financial year under Section 80C of the Income Tax Act.

Know the return value if you invest Rs 10 lakh in the guaranteed return scheme.

Before that, let's know a little more about the scheme:

National Savings Time Deposit Account (TD), or post office TD, runs a total of four FD schemes with different interest rates. Interest rates for 1-, 2-, 3-, and 5-year FDs are 6.9 per cent, 7.0 per cent, 7.1 per cent, and 7.5 per cent, respectively. 

A single adult, a guardian on behalf of a minor, a guardian on behalf of a person of unsound mind, and a minor above 10 years old in their own name can open a post office FD account.

One can also open a joint account for up to three adults. 

One can open an account with a minimum of Rs 1,000 and in multiples of Rs 100. There is no maximum limit for investment in the scheme. 

The account holder in each of the FDs can extend their tenure upon completion of the original tenure. 

The account can also be closed prematurely, but in that case, the policyholder gets a lower interest rate. 

How much return will you get on Rs 10 lakh deposit?

If you are depositing Rs 10 lakh in the 5-year post office FD at a 7.50 per cent interest rate, you will get Rs 4,49,948 in interest, and the maturity amount on the completion of the scheme will be Rs 14,49,948.

(Disclaimer: This calculation is for knowledge purpose only. This is not investment advice. Do you own due diligence or consult an expert before planning investing.)