Post office - Time Deposits!

Post office time deposits are available for periods ranging from 1 year to 5 years. The current rate for a one-year deposit is 6.25%.

Interest payments are made annually. Investors have an exit option within six months without receiving any interest. There is a one-year lock-in for exit with interest. A penalty of 2 per cent is deducted from the relevant rate in case of premature withdrawals.

Interest income from this scheme is eligible for tax benefits. So if you are a short to medium-term investor looking for an annual interest income along with flexible investment tenure, time deposits are suitable for you.

How do I invest in a Time Deposit?

A Time Deposit account can be opened at any post-office.

What is the minimum investment for a Time Deposit?

The minimum investment in a Time Deposit could be as low as Rs.50. There is no upper limit on investment. 

Next - Insurance as an investment! >>

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Table Of Contents

  1. How to manage your money? - Intro
  2. Why should you invest your money?
  3.       >> For making "big buys"!
  4.       >> For tax saving!
  5.       >> Inflation
  6.       >> "The power of compounding!"
  7. How to invest?
  8. Investing in Mutual Funds!
  9. Assured return investments...
  10.       >> Fixed Deposits (FD's)
  11.       >> Public Provident Fund (PPF)
  12.       >> Employees Provident Fund (EPF)
  13.       >> National Savings Certificate (NSC)
  14.       >> Kisan Vikas Patra
  15.       >> Post-office - Monthly Income Scheme 
  16.       >> Post-office - Time Deposits
  17. Insurance