Learn how to triple your money with post office fixed deposit investment. This comprehensive guide covers interest rates, tax benefits, and investment strategies.
Investing in the post office, like a bank, is considered very safe. Here, the government guarantees the safety of your money. Although there are many schemes in the post office, let's learn about post office fixed deposits here.
Fixed deposit schemes for different time periods are available at the post office. 7.5% interest is offered on a 5-year fixed deposit. Along with this, you can also get tax exemption under Income Tax Act 80C. Investing in this scheme can triple the principal amount deposited.
To triple your money through Post office investment, you need to choose a 5-year fixed deposit scheme. You need to invest in this scheme and extend it at maturity. You have to extend the fixed deposit twice in this way.
That means, you have to invest in this FD scheme for 15 years. If you invest Rs 10 lakh in this FD scheme, you will get Rs 4,49,948 as interest in 5 years at an interest rate of 7.5%. The total amount will be Rs 14,49,948.
If you extend the post office FD investment for another 5 years, you will get Rs 11,02,349 as interest alone. The total amount receivable after 10 years will be Rs 21,02,349. It needs to be extended once more upon maturity.
In the 15th year after the second extension, you will get Rs 20,48,297 as interest alone for an investment of Rs 10 lakh. When the maturity period comes, you can withdraw Rs 30,48,297. You will get twice the interest as well as the principal invested.
A one-year FD scheme can be extended for a further investment within 6 months from the maturity date. If it is a 2-year FD scheme, it can be extended within 12 months from the maturity period. 3 to 5 year fixed deposits get 18 months grace period from the maturity date for extension. Apart from this, you can request for further extension after maturity while opening the account. Please note that the interest rate prevailing on the date of maturity will be applicable for the extended period.