Although there are many investment options available nowadays, yet many people still believe in the old schemes. Fixed Deposit ie FD is also one of such reliable schemes. Although you can get FD done in the bank as well, but if you want to get FD done for a long time, then post office can be a better option for you.
Post Office FD is also known as Time Deposit. In this, the investor gets the benefit of compounding. If you want to take advantage of compounding, then the investment should be made for a long time. By investing in a post office time deposit for a long term, you can almost double or more than double your money in no time.
Rules for FDs of different tenures
In Post Office Fixed Deposit, you can fix money for one year, two years, three years and up to five years. But if you want to increase this period, you can also increase it. But as many years as the scheme is, it increases for that many years. For example, if you want to increase the FD of one year, then it will increase for one year only and if you want to increase the time duration of FD of 5 years, then it will increase for 5 years.
₹8 lakh will become ₹15 lakh in a few years
At present, 6.7 percent interest is being received on 5-year FD. Suppose you invest ₹ 8 lakh in this scheme for 5 years, then according to the post office time deposit calculator, this amount will be ₹ 11,15,254 i.e. on ₹ 8 lakh you will get ₹ 3,15,254 as interest. If you extend this FD for 5 more years, then this amount will be Rs 15,54,738 i.e.
you will get Rs 7,54,738 as interest. In this case, your amount will be almost double. On the other hand, if extended for 15 more years, the same amount of Rs 8 lakh will increase to Rs 21,67,409, which means you will get Rs 13,67,409 as interest. Interest rate by year In this post office scheme, the interest rate also varies according to the year. If you fix the money for one year, then you will get interest at the rate of 5.50%.
Interest is available at 5.70% on two year time deposit, 5.80% on 3 year and 6.70% on 5 year time deposit. The interest rate at which you have started the scheme, the same rate of interest is applicable even if you carry it forward.
