Post Office FD: Like banks, many schemes are run in post offices too. Post Office Time Deposit is one of them. In common language, we call it Post Office FD. Options of FDs with tenures ranging from 1 to 5 years are available in the post office. 7.5 percent interest is being given on 5-year FD. Along with this, you also get tax benefits under Income Tax Act 80C. If you want, you can earn twice the principal on this scheme just by interest and can triple your amount.
Know what you have to do
To triple your money in the post office, you have to choose a 5-year FD. You have to invest in this scheme and extend it before it matures. You have to do this extension 2 times in a row, which means you have to run this FD for 15 years.
More than 20 lakh interest on investment of 10 lakh
If you invest Rs 10 lakh in this FD, then at the rate of 7.5 percent interest, you will get Rs 4,49,948 interest on this amount in 5 years. In this way, the total amount will be Rs 14,49,948. But if you extend this scheme for 5 years, then you will get Rs 11,02,349 only as interest and after 10 years your total amount will be Rs 21,02,349. You will have to extend it once more before it matures. In such a situation, in the 15th year, you will get Rs 20,48,297 only as interest on an investment of Rs 10 lakh.
You will get Rs 30,48,297 on maturity
In this way, you will get a total of Rs 30,48,297 on maturity, that is, you will get twice the interest than your principal and will triple your amount.
This is how the extension will have to be done
Post Office 1 year FD can be extended within 6 months from the date of maturity, 2 year FD within 12 months of maturity period and for extension of 3 and 5 year FD, the post office has to be informed within 18 months of maturity period. Apart from this, you can also request account extension after maturity at the time of opening the account. The interest rate applicable to the respective TD account on the day of maturity will be applicable for the extended period.
How much interest is there on the rest of the post office FDs
Different post office FDs offer different interest rates. 1 year FDs offer 6.90% per annum, 2 year FDs offer 7.00% per annum, 3 year FDs offer 7.10% per annum and 5 year FDs offer 7.50% per annum.
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