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Post Office Schemes: The post office, like any other financial institution, provides investment options. These schemes offer assured returns. One of them is the Post Office FD which is a Time Deposit Scheme with the Post office. The post office has FDs with terms of 1 to 5 years. The interest rate is different according to the tenure. But if you seek to invest money with the post office for the long term, then the designation of FD is the right one for you. In this case, a 5-year FD can triple your investment. Whatever you invest in it, you will earn interest. But for this, you have to take certain steps. Let us tell you what these requirements are to ensure earning interest at Post Office FD.
Follow this strategy closely.
In order to obtain tripled returns from the Post Office, you will need to open a fixed deposit for 5 years, which will yield interest at a rate of 7.5%. It is crucial that you keep reinvesting into this scheme upon maturity. In this case, it is necessary to make additional investments within the first 5 years, which translates to a total of 15 years of investment.
Interest more than 10 lakh on an investment of 5 lakh
If you park Rs 5 lakh in this FD, then at an interest rate of 7.5 percent you will get interest of Rs 2,24,974 on this amount at the end of 5 years. Therefore, total amount will be Rs 7,24,974. If you further extend this scheme for 5 years, then you shall receive only Rs 5,51,175 as interest after 10 years. Your total amount in this case will then be Rs 10,51,175. For such a scenario you will have to extend it for One more time before it matures. In this case in the 15th year you shall receive only Rs 10,24,149 as interest. Thus, your total after 15 years will be Rs 15,24,149 which includes principal amount. Meaning you will get tripled amount, out of which more than double will be from interest alone.
Such is the manner in which the aforementioned extension has to be done.
A 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, while 3 and 5 Year FD need to be notified for extensions 18 months before the maturity period for extension. Besides that, the account extension request can also be put forth at the time of opening an account and after maturity as well. The interest rate that will be applicable to the respective TD account will also be applicable for the extended period. This was all for the simple extensions, further sophisticated reasons will require different statements from the bank.
How much Interest is given on Other FDs of Post Office.
This is where it gets complicated. Different Interest is given on different FDs of the Post Office. The 1 Year FD is currently offering 6.90% annual Interest, while the 2 Year FD is offering 7.00% annual Interest. This is followed by 3 Year FD at 7.10% annual Interest and ultimately 5 Year FD surging ahead to 7.50% annual Interest.
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