Post Office FD: Like banks, many schemes are run in post offices too. Post Office Time Deposit is one of them. In the post office, you get options of FDs with tenures ranging from 1 to 5 years. 5-year FDs are getting 7.5 percent interest. Along with this, you also get tax benefits under Income Tax Act 80C.
Investment in this scheme
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 will have to get this extension twice in a row, which means you will have to run this FD for 15 years. 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, you will get Rs 11,02,349 only as interest and after 10 years your total amount will become Rs 21,02,349. You will have to extend it once more before it matures. In this case, in the 15th year, you will get Rs 20,48,297 on an investment of Rs 10 lakh only as interest. In this way, you will get a total of Rs 30,48,297 on maturity, that is, you will get twice as much interest as your principal and triple your amount.
Can be extended internally
Post Office 1 year FD can be extended within 6 months from the date of maturity, 2 year FD can be extended within 12 months from the maturity period and for extension of 3 and 5 year FD, the post office has to be informed within 18 months from the 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 for the extended period.
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.
