Similar to banks, the Post Office also has schemes which guarantees payments. With the Post Office Time Deposit, you can earn up to three times more than the principal amount. Here’s how.
Post Office Special Scheme: Just like the banks, Post Offices also have a variety of schemes which are available for investments. Post Office schemes also provide guaranteed returns. One of these schemes is known as Post Office Time Deposit or Post Office FD. The office offers fixed deposits with terms of one upto five years. The interest rate is different according to the tenure. However, the FD option would be more desirable if you are planning to save funds for a longer period of time. With this option, the five year FD would allow you to triple your investment. Simply put, whatever Start with this form of investment, you will earn double of the amount just in interest. But for that, you need to do one thing. Let’s find out what the trick is for getting double the interest from the post office FD.
Have clear instructions
In order to get your money tripled in the Post Office, you must select a 5-year FD. A 7.5% interest is currently being paid on this FD. The investment must be made and the term must be extended prior to maturity. This extension must be done twice in a row, bringing the term of the FD to 15 years.
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More than 10 lakh interest on an investment of 5 lakh
If you invest Rs 5 lakh in this FD, then according to the interest rate of 7.5 percent, you will get Rs 2,24,974 interest on this amount in 5 years. In this way, the total amount will be Rs 7,24,974. But if you extend this scheme for 5 years, then you will get Rs 5,51,175 only as interest and after 10 years your total amount will be Rs 10,51,175. You will have to extend it once more before it matures. In this case, in the 15th year, you will get Rs 10,24,149 only as interest. In this way, after 15 years, you will get a total of Rs 15,24,149 including the principal amount. Meaning you will get the amount tripled, in which you will earn more than double from interest only.
This is how the extension has to be done
Post Office 1 year FD can be extended within 6 months from the date of maturity, 2 year FD within 12 months of maturity period and for extension of 3 and 5 year FD, the post office has to be informed within 18 months of 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 on the extended period.
How much interest is given on other FDs of Post Office
Different interest is given on different FDs of Post Office. 6.90% annual interest is being given on 1 year FD, 7.00% annual interest is being given on 2 year FD, 7.10% annual interest is being given on 3 year FD and 7.50% annual interest is being given on 5 year FD.
