Want To Set Up A Post Office FD? Investment Limit, Tax Benefit And Other Details Here

India Post offers a range of maturity options under its time-deposit small savings scheme. India Post - which operates a network of more than 1.5 lakh post offices across the country - provides four different lock-in periods for time deposit - or fixed deposit - accounts, and pays interest to the tune of 7-7.8 per cent per annum on such accounts, according to its website, indiapost.gov.in. While the fixed deposits of one-year, two-year and three-year maturities have no upper investment limits in place, the five-year time deposit allows a maximum investment of Rs 1.5 lakh a year..Here are the interest rates, investment limits and income tax benefits applicable to the post office fixed deposit accounts:.Post office fixed deposit investment limits.The post office allows a minimum investment of Rs 200 in any of its time-deposit products..Post office fixed deposit interest rates (rate of return).table.tble_wrap { border-top: solid 1px #ccc; border-left: solid 1px #ccc; border-right: solid 1px #ccc; font-size: 16px; } table.tble_wrap th { background-color: #f5f5f5; padding: 5px 10px; border-bottom: solid 1px #ccc; border-right: solid 1px #ccc; } table.tble_wrap td { border-bottom: solid 1px #ccc; border-right: solid 1px #ccc; padding: 5px 10px; line-height: 18px; } table.tble_wrap td:last-child, table.tble_wrap th:last-child { border-right: none; } /*Media Query start*/ .scroll { overflow: auto; } } /* Smartphones (portrait and landscape) ----------- */ @media only screen and (min-device-width : 320px) and (max-device-width : 480px) { table.tble_wrap, thead.tble_wrap, tbody.tble_wrap, th.tble_wrap, td.tble_wrap, tr.tble_wrap { font-size: 14px; } table.tble_wrap th.tble_wrap { padding: 4px; } table.tble_wrap td.tble_wrap { padding: 4px; } table.tble_wrap th:nth-child(), table.tble_wrap td:nth-child(), { display: none; } } /*Media Query END*/ . Maturity period Annual return (interest rate) Investment limit 80C tax benefit One year 7.00% Minimum Rs 200, no upper limit No Two years 7.00% Minimum Rs 200, no upper limit No Three years 7.00% Minimum Rs 200, no upper limit No Five years 7.80% Minimum Rs 200, maximum Rs 1.5 lakh a year Yes (Source: indiapost.gov.in) Interest rates applicable to small savings schemes are revised by the government on a quarterly basis. For the quarter ending June 30, investment in fixed deposit accounts of one-three year terms fetches interest at the rate of 7 per cent per annum. Post office five-year fixed deposit income tax benefits under Section 80C Investment in the five-year time deposit account qualifies for income tax benefit under Section 80C of the Income Tax Act, according to the India Post website. Section 80C provides for a reduction of up to Rs. 1.5 lakh in taxable individual income in a year under certain conditions. In other words, eligible income tax assessees can claim a tax benefit worth up to Rs. 1.5 lakh - in the form of deduction from gross income to arrive at taxable income - in a financial year using Section 80C rules. (Also read: Have you fully utilised Section 80C tax benefit? Read this)

Want To Set Up A Post Office FD? Investment Limit, Tax Benefit And Other Details Here

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