There are dozens of ways to grow money in today's market, yet most middle-class families still pick the one place where their hard-earned savings stay fully safe and pay a fixed return. That is exactly why government savings schemes, bonds and bank deposits remain the country's most trusted and secure investment options.
The moment investment comes up, a bank fixed deposit (FD) is usually the first thing that springs to mind. But there is another option that pays more interest than a bank FD, the Post Office Time Deposit scheme.
No Discrimination on Age
Banks generally give senior citizens a slightly higher interest rate than ordinary customers. To grab that benefit, many people open FD accounts in the name of elderly family members. The Post Office Time Deposit scheme, however, makes no distinction based on age, every investor gets the same attractive rate.
Start With Just Rs 1,000
You do not need a large sum to open this account. Walk into any nearby post office branch, deposit a minimum of Rs 1,000, and your account can be opened the same day. There is no maximum limit on how much you can invest.
Customers can choose a tenure of 1, 2, 3 or 5 years to suit their needs. Just like a bank FD, the scheme offers 100% guaranteed returns, so market swings have no effect on your earnings.
How Much Interest You Earn
The scheme currently pays 6.9% on a 1-year deposit, 7.0% for 2 years, 7.1% for 3 years and 7.5% on a 5-year deposit. If you invest Rs 3 lakh for three years in the name of your spouse or a family member, the government's 7.1% rate ensures a healthy gain.
How Rs 3 Lakh Becomes Rs 3,70,551
After three full years, your deposit of Rs 3 lakh earns Rs 70,551 in interest. The moment the term ends, the post office hands you the principal of Rs 3 lakh plus Rs 70,551 in interest, a total of Rs 3,70,551, straight into your hands. For small investors, this is an excellent and safe way to grow money.
