If you like safe investment then you will get many good options in the post office. Post Office Time Deposit is also one of them. Through this scheme, you can more than double your money.
Post Office Fixed Deposit: There are many types of schemes in the post office. If you like safe investment then you can get very good options in post office scheme. Post Office Time Deposit scheme is also one of them. People usually call it Post Office FD. Through this scheme, you can more than double your money. Meaning if you invest Rs 5 lakh in this scheme, then you can make it more than 10 lakh. For this, you just have to do one thing. Know how it can be done here-
Post Office FDs are of different tenures (1,2,3 and 5 years). The interest rate is also different according to the tenure. To more than double your money, you have to choose a 5-year FD. Currently, 7.5 per cent interest is being given on this FD. To double the amount, you have to invest in this scheme and extend it before it matures. Let us tell you that in a 5-year FD, you also get tax benefits under Income Tax Act 80C.
If you invest Rs 5 lakh in post office FD for 5 years, then at the rate of 7.5 per cent interest, 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 you will get a total of Rs 10,51,175. In this way, you can get more than Rs 10 lakh by investing only Rs 5 lakh.
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 an 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.