Post Office Time Deposit (TD) Calculator 2023: Save income tax and receive Rs 2.25 lakh as interest upon investing Rs 5 lakh in this scheme
Post Office TD: Post Office Time Deposit Accounts can be held for a duration of 1 year, 2 years, 3 years, or 5 years. The deposit period can be extended for a year upon maturity
Post Office TD, Post Office Time Deposit Calculator 2023, Interest Rate, Tenure, Maturity, Tax Saving: The interest rates of all small saving schemes have been changed by the government with effect from April 1, 2023. Interest rates of all savings schemes, barring Public Provident Fund (PPF), have been increased by 10-70 basis points. One of the popular return schemes that is secure, guaranteed and preferred by small investors is a 5-year Post Office Time Deposit Account. The post office time deposit scheme is one of the best options for those who want guaranteed income and have low appetite for taking risks. The government has increased the Post Office TD interest rate on 5 year tenure from from 7 to 7.5 percent annually, from April 1, 2023.
In Post Office Time Deposits Accounts, investors can invest for a tenure of 1, 2, 3 or 5 years. Upon maturity, the time deposit can be extended further for a year. Both single and joint accounts with a maximum of 3 adults can be included in the joint account under time deposit account scheme. The account can be opened with a minimum investment of Rs 1000, and beyond that one can invest in multiples of Rs 100. There is no investment limit in post office TD.
Also Read - GPF and other small savings interest rates announced for April-June – Check the revised rates
Post Office Time Deposit Calculator
At 7.5% rate of interest, if a person invests Rs 5 lakh for 5 years, then they will receive Rs 2,24,974 as interest and Rs 7,24,974 in total upon maturity.
Earlier, at 7% rate of interest, investors would receive around Rs 2,07,000. Hence, the rate hike has lead to an increae of almost Rs 18,000 for such deposits.
Read all details of Post Office Time Deposit Account here —
Post Office TD: Who can open Post Office Time Deposit Account?
i) A single adult
ii) Upto 3 adults can form a joint account
iii) A guardian can open account on behalf of minor, or a minor over 10 years old
iv) A guardian on behalf of person of unsound mind
One can open as many accounts as they want.
Post Office TD: Deposit duration, tenure
Post Office Time Deposit Accounts can be held for a duration of 1 year, 2 years, 3 years, or 5 years. The deposit period can be extended for a year upon maturity by giving an application.
Post Office Time Deposit Account: Deposit amount
Post Office TD account can be opened for a minimum amount of Rs 1000 and in multiples of Rs 100 thereof. There is no maximum limit for investment.
Post Office Time Deposit Account: Interest
Interest on Post Office TD account shall be paid annually.
The annual interest is credited to the savings account of the account holder upon their submission of application.
Note: Upon maturity, no additional interest will be paid on the interest that has become due for payment but not withdrawn by the account holder.
Post Office Time Deposit Account: Tax Saving under 80C
The investments made for 5 year Post Office Time Deposit accounts qualify for exemption under section 80C of Income Tax Act, 1961.
Post Office Time Deposit Account: Premature withdrawal
i) Deposits cannot be withdrawn within six months from deposit
ii) If the account is closed between 6 months and 1 year, then Post Office Savings Account Interest rate will be applicable.
iii) If 2 or 3 or 5 year Time Deposit account is prematurely closed after 1 year, then interest payable shall be 2% lesser than of the interest rate applicable on the tenure for completed years, and for the months that are less than a complete year — Post Office Savings Interest rates will be applicable.
Post Office Time Deposit Account: How to close account?
The Time Deposit account can be closed prematurely by submitting prescribed application form with passbook at the concerned Post Office.
Post Office Time Deposit Account: Interest Rate
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