In this video we have covered one of the most popular small saving schemes - National Savings Time Deposit. Popularly known as the Post Office Fixed Deposit, the scheme offers a fixed risk free return to the investor.
Interest on the Post Office Fixed Deposit is paid out annually. The compounding of interest happens quarterly. The current interest rates on the Post office fixed deposit for the quarter ending 31st March 2022 are as follows:
1 Year deposit - 5.50%
2 Year deposit - 5.50%
3 Year deposit - 5.50%
5 Year deposit - 6.70%
The 5 year deposit also provides the benefit of tax saving in the form of deduction from income under section 80C of the Income Tax Act.