Today everyone desires a risk-free means of earning their hard-earned money. Bank fixed deposit rates are declining and market investments are risky. It is difficult to think of something that is risk-free but gives high returns. That is where the Post Office Time Deposit Scheme can be put to good use — a government-guaranteed savings scheme with safety of investment and regular income.

Why the Post Office Time Deposit Scheme?

This scheme is fully guaranteed by the Indian government so both the interest and the principal are guaranteed. Unlike mutual funds or stock exchange, there’s absolutely no risk of losing money. The fixed rate of interest is also highly attractive especially when compared to most bank Fixed Deposits. Here’s the current structure of interest:

1 year: 6.9%

2 years: 7.0%

3 years: 7.1%

5 years: 7.5%

The majority of investors take such rates from banks, hence it is the most sought-after option.

How Much Can You Earn?

If you put ₹3 lakh into the scheme for 2 years, the total amount you’ll receive at maturity will be ₹3,44,664. That is, a sum of ₹44,664 earned as pure interest — assured and risk-free and without waiting for market forces to calm down.

Additional Benefits That Make It Even Better

This plan has been made affordable and convenient:

Minimum investment is just ₹200

The same interest will be available for all, irrespective of age

There is an option for withdrawal before time if required

The accounts can be transferred between post offices with ease

There are the options for joint accounts as well as nomination

Deposits for 5 years can be exempted from tax under Section 80C

Why Is This Scheme Becoming Popular Now?

During times of uncertainty in economics, individuals seek investment in peace of mind. Post Office Time Deposit Scheme is a sure bet with secure and tax-free interest without any hidden traps. It is a good option for individuals who do not wish for high risk but would like to receive a fair return.

If you would like an inexpensive, secure way of accumulating your savings, this government-backed plan is well worth considering.