Post Office FD Vs MSSC: Which Government Scheme Offers Better Returns for 2 Lakhs?
Post Office FD Vs MSSC: Which Government Scheme Will Give More Profit if You Invest 2 Lakhs for 2 Years?
Investing money wisely is crucial for financial stability and growth. For those looking to invest in government-backed schemes, the Post Office Fixed Deposit (FD) and the Monthly Income Scheme (MISC) are two popular options. In this article, we will compare these two schemes to determine which one offers better returns on an investment of ₹2 lakhs for a duration of 2 years.
Understanding Post Office Fixed Deposit (FD)
The Post Office FD is a secure investment option that offers a fixed interest rate over the tenure of the deposit. As of now, the interest rate for a 2-year Post Office FD is approximately 6.5% per annum. For an investment of ₹2 lakhs, the calculation for interest earned would be:
– **Principal Amount**: ₹2,00,000
– **Interest Rate**: 6.5% per annum
– **Tenure**: 2 years
The interest earned at maturity will be:
\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]
\[ \text{Interest} = 2,00,000 \times \frac{6.5}{100} \times 2 = ₹26,000 \]
Thus, the total amount at maturity will be ₹2,26,000.
Exploring Monthly Income Scheme (MISC)
The Monthly Income Scheme (MISC) is another attractive option for conservative investors. The current interest rate for MISC is around 6.6% per annum, and it pays interest monthly. For an investment of ₹2 lakhs, the monthly interest would be:
– **Principal Amount**: ₹2,00,000
– **Interest Rate**: 6.6% per annum
The monthly interest earned is calculated as follows:
\[ \text{Monthly Interest} = \frac{\text{Principal} \times \text{Rate}}{12 \times 100} \]
\[ \text{Monthly Interest} = \frac{2,00,000 \times 6.6}{12 \times 100} = ₹1,100 \]
Over 2 years, the total interest earned would be:
\[ 1,100 \times 24 = ₹26,400 \]
Thus, the total amount at maturity will be ₹2,26,400.
Conclusion: Which is Better?
Comparing both schemes, the Monthly Income Scheme (MISC) offers a slightly higher return of ₹26,400 compared to the Post Office FD’s ₹26,000. Therefore, if you’re looking for better returns on an investment of ₹2 lakhs for 2 years, MISC is the more profitable option.
For more insights on investments and financial planning, visit looffers.com and explore a variety of investment options that suit your financial goals.
