Post Office Time Deposit: Rs 10 lakh investment will give you Rs 4.50 lakh just as interest in this scheme

National Savings Time Deposit Account: Post Office schemes have their own charm across India as they offer investors guaranteed returns and, in some cases, fixed monthly income.

A lot of investors who don't want to invest in market-linked investment schemes for fear of market fluctuations find Post Office schemes as a steady source of income, where their money remains safe. Post Office Time Deposit, i.e., National Savings Time Deposit Account, is one such Post Office investment scheme that is popular among investors seeking guaranteed returns.

What is National Savings Time Deposit Account (Post Office Time Deposit)?

It is a fixed deposit scheme run by the Post Office, where one can invest for fixed durations of 1, 2, 3, and 5 years.

The account can be opened with a minimum investment of Rs 1000 and in multiples of Rs 100.

There is no maximum limit for investment.

An adult can open a single or joint account for up to three adults.

A guardian on behalf of a child over 10 years of age can also open an account.

National Savings Time Deposit Account: Interest rates

One can invest for 1 year, 2 years, 3 years and 5 years.

According to the latest data, as of February 5, 2024, the interest rates are 6.9 per cent, 7.0 per cent, 7.1 per cent and 7.5 per cent.

This interest rate will remain effective till March 31.

Interest is revised every three months.

Interest is calculated on a quarterly basis and paid annually.

Tax benefits are also available on the 5-year scheme under Section 80C of the Income Tax Act. 

National Savings Time Deposit Account: What investment of Rs 10 lakh can give you

If you invest Rs 10 lakh for one year and get 6.9 per cent interest on it, you will get Rs 70806 as interest after completion of the scheme, and your return after a year will be Rs 1070806.

If you invest Rs 10 lakh for two years and get 7.0 per cent interest on it, you will get Rs 148882 as interest and Rs 1148882 as return.

If your investment amount is Rs 10 lakh for three years and the interest rate is 7.1 per cent, you will get Rs 235075 as interest and Rs 12,35,075 as a total return.

If you invest Rs 10 lakh for five years with an interest of 7.5 per cent, you will get Rs 449948 as interest and Rs 1449948 as a total return.

This return will also provide you tax benefits.