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Post Office TD: Maximize Your Rs 10 Lakh Investment in 3 or 5 Years!
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News18•28-09-2026, 16:41
Post Office TD: Maximize Your Rs 10 Lakh Investment in 3 or 5 Years!
- •Post Office Time Deposits (TD) offer fixed returns, shielding investments from market fluctuations.
- •A Rs 10 lakh investment in a 3-year TD at 7.1% yields approximately Rs 2.13 lakh in interest.
- •A Rs 10 lakh investment in a 5-year TD at 7.5% yields approximately Rs 3.75 lakh in interest, an additional Rs 1.62 lakh compared to the 3-year plan.
- •The 5-year TD may qualify for Section 80C deduction, but interest earned is taxable.
- •Interest is calculated quarterly and paid annually; consider your financial needs and tax situation when choosing tenure.
Key Questions Answered
For the July-September quarter of 2026, the interest rate on a 3-year Post Office Time Deposit is 7.1% per annum.
A Rs 10 lakh investment in a 5-year Post Office Time Deposit at an annual interest rate of 7.5% will earn approximately Rs 75,000 a year, resulting in a total interest of about Rs 3.75 lakh over five years.
Subject to applicable income-tax rules, a 5-year Post Office time deposit can qualify for a deduction under Section 80C of the Income Tax Act.
