Investing your money is crucial, so everyone should invest to secure their future. Different people prefer to invest their money in different places. However, most people prefer to invest in bank FDs (fixed deposits). Investing in bank FDs is considered the best option because the money invested here is safe and the returns are predetermined.

If you are an FD investor, meaning you prefer to invest in FDs, you can also invest in Post Office Time Deposits (POST Office Time Deposits). Post Office FDs also offer very good interest rates. So, let’s learn more about Post Office FDs.

Attractive Interest Rates of Post Office FDs

The Post Office offers FDs for 1 year, 2 years, 3 years, and 5 years. These FDs offer different interest rates, which are protected from market fluctuations.

  • A 1-year FD earns an interest rate of 6.9 percent.
  • The interest rate on a 2-year FD increases to 7 percent.
  • A 3-year FD yields a 7.1 percent return.
  • A 5-year FD yields the highest interest rate of 7.5 percent.

This 7.5 percent interest rate ensures a bumper profit for long-term investors.

How much will you get on investing ₹5 lakh

If you invest ₹5 lakh in this secure post office scheme, the full return you will receive at the end of the term is given below:

Returns on a 1-year FD

If you invest ₹5 lakh for 1 year, you will receive a total of ₹5,35,403 at maturity. This means you will have a net profit of ₹35,403.

Returns on a 2-Year FD

Investing ₹5 lakh in a 2-year FD will yield a total of ₹5,74,441 upon maturity. In this case, you will earn a substantial profit of ₹74,441.

Returns on a 3-Year FD

If you invest ₹5 lakh for 3 years, you will earn a total of ₹6,17,538 upon maturity. In this case, you will earn a substantial profit of ₹1,17,538.

Returns on a 5-Year FD

Investing ₹5 lakh in a 5-year FD will yield a total of ₹7,24,974 upon maturity. This means you will earn an unprecedented profit of ₹2,24,974.

Why invest in a Post Office

Investing in a Post Office FD is not only risk-free but also offers guaranteed returns. A 7.5% interest rate for a 5-year long-term investment is a golden opportunity for investors seeking to avoid market volatility. This is a great financial decision for those seeking a stable and secure return on their savings.