Regular investments usually deliver stable returns over the long term. While there are numerous investment options available today, many carry a certain level of risk. In contrast, government-backed schemes, bonds, and bank deposit plans are known for offering assured returns with relatively lower risk.
When it comes to deposit schemes, fixed deposits are often the first choice for investors. At present, banks are offering attractive interest rates on FDs, with senior citizens enjoying slightly higher rates than others. Fixed deposits can also be opened in the name of an elderly family member.
Fixed deposits have become a widely preferred investment option, though interest rates differ from one bank to another. Similar facilities are also available at post offices, which continue to offer competitive interest rates on fixed deposits.
Post office fixed deposits, known as time deposits (TDs), can be opened for tenures ranging from 1 to 5 years. Like bank FDs, these offer guaranteed returns for a fixed period. Customers can choose TDs of 1 year, 2 years, 3 years, or 5 years. The current interest rates are 6.9 per cent for 1 year, 7.0 per cent for 2 years, 7.1 per cent for 3 years, and 7.5 per cent for 5 years. The minimum investment required is Rs 1,000, with no upper limit.
Post office TD schemes offer the same interest rates to all investors, irrespective of age or gender. If you invest Rs 1,00,000 in a 2-year (24-month) post office TD in your spouse’s name, the maturity amount will be Rs 1,14,888. Of this, Rs 14,888 will be earned as interest. This scheme provides guaranteed returns without exposure to market risk.
