Post Office FD: Like banks, options of FDs of different tenures are available in post offices. 7.5 percent interest is being given on 5-year FD. Along with this, you also get tax benefits under Income Tax Act 80C. Through this FD, you can triple your money.
Post Office FD: Like a bank, investment in a post office is also considered very safe. In this, the government guarantees the safety of your money. Many schemes are run in the post office, but here we will talk to you about Post Office Time Deposit, which we call Post Office FD in common language. Like a bank, options of FD of different tenures are available in the post office. 7.5 percent interest is being given on 5-year FD. Along with this, you also get tax benefit under Income Tax Act 80C. In such a situation, if you invest in this scheme, you can triple your amount. For this, you have to do just one thing.
Know what you have to do
To triple your money in the post office, you have to choose a 5-year FD. You have to invest in this scheme and extend it before it matures. You have to do this extension 2 times in a row, which means you have to run this FD for 15 years. If you invest Rs 10 lakh in this FD, then at the rate of 7.5 percent interest, you will get Rs 4,49,948 interest on this amount in 5 years. In this way, the total amount will be Rs 14,49,948.
But if you extend this scheme for 5 years, you will get Rs 11,02,349 only as interest and after 10 years your total amount will be Rs 21,02,349. You will have to extend it once more before it matures. In such a situation, on the 15th year, you will get Rs 20,48,297 only as interest on an investment of Rs 10 lakh. On maturity, you will get Rs 30,48,297 on maturity. That is, you will get twice as much interest as your principal and triple your amount.
Understand the rules of extension
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 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 for the extended period.
