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Post Office TD: How Much Profit on ₹10 Lakh Investment in 5-Year TD?
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News18•28-09-2026, 23:25
Post Office TD: How Much Profit on ₹10 Lakh Investment in 5-Year TD?
- •Details of profit on ₹10 lakh investment in Post Office TD for 3-year and 5-year tenures.
- •A 3-year TD offers an annual interest rate of 7.1%, yielding a total interest of approximately ₹2.13 lakh.
- •A 5-year TD offers an annual interest rate of 7.5%, yielding a total interest of approximately ₹3.75 lakh.
- •The 5-year TD may qualify for tax exemption under Section 80C, but interest earned is taxable.
- •Investors should choose the tenure based on their financial needs, when the money is required, and tax situations.
Key Questions Answered
For the July-September 2026 quarter, the annual interest rate on a 3-year Post Office Time Deposit (TD) is 7.1%, while the interest rate for a 5-year TD is 7.5%.
Investing ₹10 lakh in a 5-year Post Office TD at an annual interest rate of 7.5% yields approximately ₹75,000 per year, resulting in a total interest of about ₹3.75 lakh over five years.
Subject to current income tax rules and the old tax regime, a 5-year Time Deposit scheme may qualify for tax exemption under Section 80C of the Income Tax Act.
