This Saving Scheme of Post Office is useful not only for saving but also for saving tax.

Post office Term Deposit: Post Office Small Saving Scheme not only saves money but also gives you tax benefits. If you want to make a safe investment, then this post office scheme can be a better option for you.

Post office Term Deposit: If you are making an investment plan for tax saving, and are looking for an investment option, then this news can prove to be useful for you. Although there are many schemes of the post office, but in this small saving scheme (Post Office Scheme) not only money is saved but you also get tax benefits. If you want to make a safe investment, then this post office scheme can be a better option for you. Today we will give you information about the time deposit plan of the post office, which is currently giving more returns than the interest on Fixed Deposit . Along with this, the benefit of tax exemption is also available.

Post Office's Time Deposit Scheme is a saving scheme. It is also known as National Savings Time Deposit. The interest rate of this scheme is revised every three months. Let us tell you about this scheme in detail…

Post Office Time Deposit (POTD)

Let us tell you, the interest rate of post office time deposit (Post Office TD Interest Rate) gives good returns as compared to some tenures of fixed deposits. You can make term deposits in it. That is, you can invest in it for one year, two years, three years and five years. You can open an account in this scheme for a child of 10 years or more.

How much tax exemption will be available

In this plan, you are given interest annually. In this you can invest only Rs 1000 whereas there is no limit for maximum investment. Annual interest is credited to the account holder's account. In this scheme, tax benefit of up to 1.5 lakh is available under Section 80C of Income Tax Act 1961 for 5 years TD.

What are the interest rates on POTD

For investing in this scheme, 5.5 percent interest is available for one year. Whereas, for two and three year fixed deposits, the interest rate is 5.7 per cent and 5.8 per cent.

What happens in case of premature closure?

If you want to close the account before time, then for this you can close the account by submitting the application along with the passbook in the concerned post office. You cannot close the account before six months from the date of opening the account.