If you’re looking for a safe investment option with guaranteed returns, the Post Office Time Deposit (TD) Scheme may be just what you need. Backed by the Central Government, this scheme offers fixed interest earnings and the security of a trusted institution.
Let’s explore how depositing ₹1,00,000 can earn you a return of ₹14,663 and what recent changes have been made to the interest rates.
What Is the Post Office TD Scheme?
The Time Deposit (TD) account, also known as the Post Office Fixed Deposit, allows you to invest for 1 year, 2 years, 3 years, or 5 years. It functions just like a traditional bank FD, but with the added trust of government backing.
Interest Rates Slashed for 2 and 3-Year TDs
Recently, the Department of Posts revised its TD interest rates. Here’s what changed:
Term | Previous Interest Rate | New Interest Rate |
---|---|---|
1 Year | 6.9% | 6.9% (No Change) |
2 Years | 7.0% | 6.9% 🔻 |
3 Years | 7.1% | 6.9% 🔻 |
5 Years | 7.5% | 7.7% 🔺 |
So while the 2 and 3-year deposit rates have been lowered, the 5-year plan now offers a slightly higher return.
How Much Will You Earn on ₹1 Lakh?
If you choose the 2-year TD option and deposit ₹1,00,000:
- At 6.9% interest per annum (compounded annually),
- You’ll receive ₹1,14,663 on maturity.
- That’s a net gain of ₹14,663 as fixed interest.
This makes it a smart choice for conservative investors who value safety and predictable returns.
Government-Backed Security
The Post Office TD Scheme is operated by India Post under the Central Government, which means your investment is backed by sovereign guarantee. That adds a high level of trust and low risk, especially during uncertain market times.
Final Thoughts
While the interest rates on some tenures have dipped slightly, the Post Office TD Scheme still remains one of the most secure fixed return options available today. If you’re planning to park your funds for 2 or 5 years, it’s worth considering this route for guaranteed growth.
Disclaimer: This article is for informational purposes only. Always consult a certified financial advisor before making investment decisions. The platform does not take responsibility for any financial loss.