Investing ₹7,00,000 in the Post Office will yield a fixed interest of ₹3,14,964
Post Office Scheme: Similar to Fixed Deposits (FDs), the Post Office Time Deposit Scheme is a fixed-income small savings scheme offered by India Post. In this scheme, investors can invest a lump sum amount for a fixed period and earn guaranteed interest income. This scheme is backed by the Ministry of Finance, making the investment completely secure. Stable returns, flexible investment options, and competitive interest rates make this scheme popular among investors. Currently, the Post Office Time Deposit Scheme offers interest rates ranging from 6.90% to 7.50%.
This scheme offers guaranteed and secure returns, similar to a bank fixed deposit. It is backed by the central government. Investment options are available for periods of 1, 2, 3, and 5 years. It is suitable for medium and long-term investors. You can open a Time Deposit account with a minimum deposit of ₹1000. Additional deposits can be made in multiples of ₹1000, with no upper limit. Premature withdrawal is permitted after 6 months, providing depositors with liquidity in case of financial emergencies.
In this 5-year Post Office scheme with an interest rate of 7.5%, when you deposit ₹7,00,000 as a lump sum, at maturity, after 60 months, you will receive ₹3,14,964 as interest alone, according to the calculations, and this return is guaranteed. According to the calculations, you will have a total fund of ₹10,14,964 after five years. This means you will get a guaranteed return without taking any market risk.
