If you’re looking for a safe and high-return investment, the Post Office Time Deposit (TD)—also known as Post Office FD—might be the perfect option. Offering guaranteed returns and tax benefits, this scheme allows you to triple your investment over time with strategic reinvestment.
Maximize Your Returns With a 5-Year FD
Post Office offers fixed deposit (FD) options ranging from 1 to 5 years, with the highest interest rate of 7.5% per annum on a 5-year FD. Additionally, investments in a 5-year FD qualify for tax benefits under Section 80C of the Income Tax Act.
By reinvesting your FD twice, you can grow ₹10 lahks into over ₹30 lahks in 15 years—purely through interest earnings.
How to Triple Your Investment?
To make the most of this scheme, follow these steps:
- Invest in a 5-year FD at the current 7.5% interest rate.
- Reinvest (extend) the FD after maturity for another 5 years.
- Reinvest once again after 10 years, keeping your FD active for 15 years.
Breakdown of Returns on a ₹10 Lakh Investment
DurationInterest EarnedTotal Amount
After 5 Years ₹4,49,948 ₹14,49,948
After 10 Years ₹11,02,349 ₹21,02,349
After 15 Years ₹20,48,297 ₹30,48,297
Thus, your ₹10 lakh investment grows into ₹30.48 lakh, giving you twice the interest and tripling your initial amount!
How to Extend Your FD?
To extend your Post Office FD, follow these guidelines:
- 1-Year FD: Extend within 6 months of maturity.
- 2-Year FD: Extend within 12 months of maturity.
- 3-Year & 5-Year FD: Extend within 18 months of maturity.
- You can also request an extension when opening the account for hassle-free renewal.
The interest rate at the extension time will apply to the renewed FD.
Current Post Office FD Interest Rates
- 1-Year FD: 6.90% p.a.
- 2-Year FD: 7.00% p.a.
- 3-Year FD: 7.10% p.a.
- 5-Year FD: 7.50% p.a. (Best for long-term gains!)
