information point

Time Deposit Scheme Best Option for Investment / Secure Investment, Interest Rate from 6.9% to 7.7%

Time Deposit Scheme Best Option for Investment / Secure Investment, Interest Rate from 6.9% to 7.7%


  • Under this scheme an account can be opened from Rs 200
  • Interest is paid on an annual basis

Utility Desk:

 The post office offers many savings plans, which not only keep your money safe but also provide good interest. One of these schemes is a fixed deposit scheme, also known as a fixed deposit or FD account. Interest under this scheme is paid annually, but is calculated on a quarterly basis. The account can be opened for only Rs 200.
How to open an account?
The post office can be opened by anyone with a fixed deposit account cash or check. According to India Post, in case of check, the account will be considered open from the date of receipt of the check amount to the government account. This account can also be opened in the name of a minor and a joint account in the name of two adults.
How much money has to be deposited?
At least 200 rupees can be deposited to open an FD account at the post office. There is no maximum limit.
How much interest will I get?
The Post Office Time Deposit Account offers 6.9 to 7.7% interest for a period of 1 to 5 years. According to India Post's website, the interest rate is as below

Time interest rate
1 year 6.9%
2 years 6.9%
3 years 6.9%
5 years 7.7%

No tax exemption benefit

The interest earned from this scheme is taxable and adds to the annual income of the person who invested in it. If you invest in a 5 year time deposit, you will get tax exemption benefits.