Post Office FD: Post office schemes also give guaranteed returns like banks. If you invest money in Post Office Time Deposit, you can earn more interest than the principal and triple your amount. Understand how
Post Office FD: Like banks, there are many schemes available for investing in post office. Post office schemes also give guaranteed returns. Post Office Time Deposit i.e. Post Office FD is one of them. Options of FDs with tenures ranging from 1 to 5 years are available in post office. The interest rate is different according to the tenure. But if you want to invest money in post office for a long term, then you can choose the FD option. In this, a 5-year FD can triple your investment. Whatever you invest in this, you will earn double of it just from interest. But for this you have to do one thing. Let us tell you what is the trick to get double interest from the principal on post office FD.
Know what you have to do
To triple your money in the post office, you have to choose a 5-year FD. Currently, 7.5% interest is being given on this 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, that is, you have to run this FD for 15 years.
More than 10 lakh interest on an investment of 5 lakhs
If you invest 5 lakh rupees in this FD, then according to the interest rate of 7.5 percent, you will get an interest of Rs 2,24,974 on this amount in 5 years. In this way, the total amount will be Rs 7,24,974. But if you extend this scheme for 5 years, then you will get Rs 5,51,175 only as interest and after 10 years your total amount will become Rs 10,51,175. You will have to extend it one more time before it matures. In this case, in the 15th year, you will get Rs 10,24,149 only as interest. In this way, including the principal amount, you will get a total of Rs 15,24,149 after 15 years. Meaning, you will get the amount three times, in which you will earn more than double from the interest only. This is how you will have to get extension
1 year FD of post office 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, post office has to be informed within 18 months of maturity period. Apart from this, you can also request for 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 on the extended period.
How much interest is given on other FDs of post office
Different interest is given on different FDs of post office. 6.90% annual interest is being given on 1 year FD, 7.00% annual interest is being given on 2 year FD, 7.10% annual interest is being given on 3 year FD and 7.50% annual interest is being given on 5 year FD.
