Post Office Fixed Deposit interest rate and benefits in Income Tax

USNMix Report: Find the Interest Rate at the Fixed Deposit in the Post Office,
Learn about 5 key points.

Around 1.5 lakh post offices have been spread across the country. Most small investors try to avoid the market risk, so even today, fixed deposits are considered as a very good investment option. Investing here also provides relief in income tax.

There are many investment options in the post office. For deposit here also get good returns, and there is also a guarantee. Interest rates are also different when investing in different schemes. Around 1.5 lakh post offices have been spread across the country. Most small investors try to avoid the market risk, so even today, fixed deposits are considered as a very good investment option. If you do have a time deposit (Fixed Deposit or TD or FD) at the post office, according to the information available on the Indian Postal Service website, returns are available annually, but the interest rate calculation is quarterly (every three months). It also benefits in income tax. 

Key points of Post Office Fixed Deposit

1. How to open an account: Any citizen of the country can open his account with cash and cheque in the post office. If payment is done through cheque, the day on which the money will be transferred to the government account, the account will be considered open from that day. It can be both a single and joint account.

2. To open an FD account, a minimum of Rs 200 will be deposited in cash (in cash or by cheque). There is no maximum limit.

3. Post Office FD is for five years.

4. Interest rates change for five years, which is between 7 percent and 7.8 percent.

5. According to the information available on the website, the interest rate is 7% in the first year, 7% in the second year, 7% in the third year, 7% for the fourth year and 7.8% for the fifth year.

Whatever investment is being made, the benefit can also be raised in the income tax return. The amount invested under it falls under 80C under Income Tax Act 1961. You must mention the nominee when opening a post office fixed deposit. Once the account is opened, a single account, joint and joint can be converted into single.