Business News Desk – Like banks, many types of schemes are run in post offices too. There are some schemes in which the post office gives better returns than the bank. Post Office Time Deposit is also one of them. In common language it is called post office FD. If you like safe investment, then you can invest in Post Office FD. Post Office offers FD option for 1, 2, 3 and 5 years. If you invest or have invested in a 5-year FD in the post office, you can earn a good amount of interest and can more than double your amount, that is, you can earn more from the interest than the principal amount. However, for this you have to do one thing. Understand your advantages.
In this way the money will more than double
Different interest rates are available on post office schemes according to the tenure. If you invest in one year FD, you get 6.9% interest, 7% on two year FD, 7.1% on three year FD and 7.5% on five year FD. But if you want to more than double your amount, then you will have to first invest in a 5 year FD and extend this FD for the next 5 years. Let us tell you that tax benefit is also available on 5 year FD.
Rs 5 lakh will become more than Rs 10 lakh
If you invest in post office FD for 5 years, you will get 7.5 percent interest. According to the post office calculator, on an investment of Rs 5,00,000, you will get Rs 2,24,974 as interest in 5 years i.e. on maturity you will get a total of Rs 7,24,974. But if you extend it once i.e. continue for 5 more years, then in total 10 years you will get interest of Rs 5,51,175 on it. That means your interest will be more than your principal amount. In such a situation, in 10 years you will be the owner of Rs 10,51,175.
These are the rules of extension
Post Office Time Deposit Account can be extended from the date of maturity within the prescribed period mentioned here. For 1 year FD, the extension has to be informed within 6 months from the maturity date, for 2 year FD within 12 months of the maturity period and for 3 and 5 year FDs within 18 months of the maturity period. Additionally, you can request for account extension even after maturity at the time of account opening. The interest rate applicable on the concerned TD account on the date of maturity will be applicable on the extended period.
