3 Post Office Schemes With 5-Years Lock-In Period That Offer Guarantee Returns, Check Details

For the last few days, we have all are seeing that there are a lot of ups and downs in the stock market. In such a situation, many people do not like to invest in the risky equity market. For such people, the post office keeps on coming up with great investment options. Investing in the Post Office Small Savings Scheme helps you to give higher returns in the long term.

In this article we are going to tell you about 3 Saving Scheme of the Post Office that offers guaranteed returns. These 3 schemes are the Post Office Recurring Deposit Account, Post Office Time Deposit Account (POTD), and Post Office - National Savings Certificate (NSC). These schemes come with a lock-in of five years except for the Time Deposit. There are many benefits of investing money in these post office savings schemes.

You will get guaranteed returns here and it is safe to invest in the scheme as these schemes are backed by the Post Office. There is also the benefit of tax deduction in two of these schemes.

Post Office Recurring Deposit Account (RD)

If you are looking for a safe & secure RD (Recurring Deposit) with guaranteed returns for 5 years the Post Office Recurring Deposit Account is for you. This scheme offers 5.8% interest rate on RD. The interest rate compounded quarterly. You can start investing in this scheme with a minimum amount of Rs 100 per month or any amount in multiples of Rs 10. There is no maximum limit for investment in this scheme. 

Post Office Time Deposit Account (POTD)

As the name suggests, this scheme is a type of FD from the post office. Under this scheme, you can make deposits in the post office for one, two, three or five years. For one, two and 3 years, FD, offers 5.5% interest. If you are looking for a good returns then you must invest money in Time Deposit for 5 years. On the time deposit scheme of 5 years, it offers the highest up to 6.7%. Also, you can get the benefit of income tax exemption under section 80C of the Income Tax Act, 1961. Under this scheme, you can open an account with a minimum deposit of Rs 1000. You can invest as much as you want in multiples of 100. There is no maximum limit for investment.

Interest rates 

Period	Rate
1yr.A/c	5.50%
2yr.A/c	5.50%
3yr.A/c	5.5​%
5yr.A/c	6.7​ %

Post Office - National Savings Certificate (NSC)

Post Office NSC scheme comes with a lock-in period of 5 years. This is 3rd scheme that offers a promising rate of interest up to 6.8% on 5 years tenure. Under this scheme, you can invest a minimum of Rs 1000 and in multiple of Rs 100. There is no maximum limit for deposit. This scheme allows you to withdraw your money only after the completion of 5 years lock-in period. However, under some conditions, you can withdraw the investments prematurely. Deposits under this scheme qualify for deduction under section 80C of the Income Tax Act.