Like banks, there are many investment schemes available at post offices, offering guaranteed returns. One such scheme is the post office time deposit (FD), available for periods ranging from 1 to 5 years. The interest rate varies depending on the tenure. However, if someone wants to invest for the long term, they can choose the FD option. In this, a 5-year FD can triple the investment. The interest alone can double the amount invested. But to achieve this, one must follow a specific strategy. Let’s explore how to get double interest with a post office FD.
How to Triple Your Investment in Post Office FD
To triple your investment in the post office, you need to choose a 5-year FD, which currently offers an interest rate of 7.5%. After investing, you must extend the FD twice, making it a 15-year investment. This strategy will help you grow your investment significantly over time.
Interest on ₹5 Lakh Investment:
If you invest ₹5 lakh in this 5-year FD at an interest rate of 7.5%, you will earn ₹2,24,974 in interest over 5 years. The total amount at maturity will be ₹7,24,974. If you extend this FD for another 5 years, you will earn ₹5,51,175 in interest, and after 10 years, the total amount will be ₹10,51,175. Extending it once more for another 5 years will bring your total to ₹15,24,149. This means that after 15 years, you will receive three times your initial investment, with the interest alone more than doubling your money.
How to Extend Your Post Office FD:
- 1-year FD: Can be extended within 6 months of maturity.
- 2-year FD: Must be extended within 12 months of maturity.
- 3- and 5-year FDs: Need to be extended within 18 months of maturity.
At the time of opening the FD, you can request an extension after maturity. The interest rate applicable at the time of maturity will apply for the extended period.
Post Office FD Interest Rates:
Post Office FDs offer different interest rates based on the tenure:
- 1-year FD: 6.90% per annum
- 2-year FD: 7.00% per annum
- 3-year FD: 7.10% per annum
- 5-year FD: 7.50% per annum
Disclaimer: The interest rates and returns mentioned in this article are based on current post office FD rates and may change over time. Investors should verify the latest rates and terms with the post office before investing. This article is for informational purposes only and does not constitute financial advice.