Post Office TD Scheme: Rs 4.5 lakh investment earns Rs 2 lakh interest

Aaj Tak reports that the Post Office Time Deposit (TD) Scheme can generate over Rs 2 lakh in interest alone from a single lump-sum investment of Rs 4.5 lakh for five years. The scheme, backed by the government, offers interest rates of 6.9% for one year, 7% for two years, 7.1% for three years, and 7.5% for five years. Investors can start with as little as Rs 1,000, with no upper investment limit, and can open single or joint accounts.

Tax benefits are available under Section 80C of the Income Tax Act, 1961. At the 7.5% rate for a five-year deposit, a Rs 4.5 lakh investment matures to Rs 6,52,477, including Rs 2,02,477 in interest. Alternatively, a Rs 10 lakh investment for three years at 7.1% yields Rs 2,35,075 in interest, totalling Rs 12,35,075 at maturity.