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.
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Table Of Contents
- How to manage your money? - Intro
- Why should you invest your money?
- >> For making "big buys"!
- >> For tax saving!
- >> Inflation
- >> "The power of compounding!"
-
How to invest?
-
Investing in Mutual Funds!
- Assured return investments...
- >> Fixed Deposits (FD's)
- >> Public Provident Fund (PPF)
- >> Employees Provident Fund (EPF)
- >> National Savings Certificate (NSC)
- >> Kisan Vikas Patra
- >> Post-office - Monthly Income Scheme
- >> Post-office - Time Deposits
- Insurance