Best Investment Plan for 5 Years in Post Office

If you’re looking to start an investment, you might want to think about the best investment plan for 5 Years in Post Office. There are many investment plans you can choose from the post office scheme & plans. They range from the time period of between 5 to 20 years and many more. In this article, we will discuss a few of the best investment plans for 5 years in the post office.

Best Investment Plans for 5 years in the Post Office are Listed Below :

Post Office Time Deposit Account

Currently, the interest rate for time deposits (TD) is 6.6 per annum. There is not a maximum deposit limit in this scheme. The interest rate of the post office time deposit account is payable annually but calculated quarterly. The interest rate of the time deposit account after 1 year is 6.6%, 2nd year is 6.7%, 3rd year is 6.9%, 4th year is 7.2 and in the last 5th year that is 7.4%.  Post office time deposit account offers guaranteed a better interest on investment on a period of five years. 5-year time deposits qualified for tax-deductible status under Section 80C of the income tax act also qualify for a tax reduction under the provisions of section 761. The scheme offers two convenient methods of access; through the Internet and by going to the post office. Online access is hassle-free and straightforward as the user only needs a computer and an Internet connection.

Post office time deposit account can significantly benefit a whole family as a single earning parent can save for their children’s education, send them to school, and earn some extra money. Single mothers can also opt for this service to support their widows during their time of need. Even unemployed people can use these savings schemes without any difficulty, as they can withdraw cash from their accounts without any hassle.

5-Year Post Office Recurring Deposit Account

The Post Office Recurrence Deposit is also known as a short-term savings plan where depositors need to deposit their fixed assets for a minimum of 5 consecutive years. In many cases, the longer the investment period, the better the interest rate and vice versa. It offers the interest rate of 6.9 percent p.a. There is no maximum limit deposit to this account. You can withdraw up to fifty percent of the balance after one year.

Senior Citizen Savings Scheme

The Senior Citizen Savings Scheme was established in 1992. The main aim of the scheme was to provide financial support to the senior citizens of India. This enabled the senior citizens to ensure financial security and a comfortable living for themselves and their dependents. It is fetching an interest rate of 8.3 percent per annum from 2017. The investment amount will be deducted under section 80C, and the interest earned is taxable & subject to TDS as well. The scheme offers a high-interest saving option and also provides a high return on the invested amount. There is no maturity period in the Senior Citizen Savings Scheme account. The minimum initial deposit amount is Rupees 500, and the maximum cumulative deposit amount is Rupees 15 Lakh and above. Thus, the scheme helps the senior citizens buy or invest in a property or a permanent asset that they would otherwise not be able to afford.

Conclusion :

The best investment plan for 5 years in post office savings accounts is something anyone can do. The hardest part of saving these funds is staying committed over the short term. While many investors believe they can get by with little or no effort, the truth is you need to be dedicated if you want to see the results you want.

Also Read : Finance Tips For College Students

Leave a Comment